Parents as household employees or not

Hi, I am seeking expert advice here. Thank you!

 

I am a single mother, and my parents live with me. My son is under 12. I use my FSA money to pay my parents to take care of my son while I am at work. The total amount paid to my parents will be $3600 in 2021 ($1800 for each person). My questions are:

 

1. Do I need to pay FICA tax for them?

2. Do they need to pay FICA tax?

3. How should they report this income on their tax form?

 

Thanks a lot for your help!