You do not have to issue a W2 or 1099-NEC. Because you will be using the expenses for the FSA, you will be required to report her social security number to the IRS on your Form 2441. If she is an independent contractor (see the article below), she would be required to report if you pay her more than $400.
See Babysitter Taxes (Who Owes It & How to Pay) | The TurboTax
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
