If I am paying my parents to care for my child after school, what is the process for filing our taxes?

I have an FSA dependent care account and I'd like to use some of those funds to pay my parents for their time in caring for one of our children after school.  How do I file that?  How do taxes work on that?  Do I withhold money on my end?  I believe they have to claim it as self-employment income, but do we need to provide them a form in order to do so?  How does that all work?  Thank you!