I am thinking of hiring my mother as household employee vs hiring my Dad as a1099 contractor,what's the difference?

Hello everyone. My elderly parents, both aged 65+ are coming to the US with green cards and they are not eligible for medicare/medicaid as they have not been in the US for 5 years. The main objective is for my parents to work and earn a household income close to the 100% FPL so that they qualify for the premium tax credit so that they can afford to buy health insurance on Marketplace. 

So shall I hire my mum as my newborn's nanny and pay her like a household employee? I read you don't need to give her a W2 or do any of the medicare/tax witholdings? Is that true? I want to pay her around 20K per year for childcare.

Another way is because I run a small business doing consulting, and I can hire my Dad as my virtual assistant so he can do the clerical work for my business and I can pay him 20K as a 1099 contractor. 

 

Which way is better and easier to file? What is the main difference between the 2?  As long as they both file jointly and report a yearly income of around 20k, they will have a good premium tax credit to buy insurance with. Thank you so much.