Considering hiring a family member as a caregiver for in-home care– whether for a baby or an aging senior? Families often engage a family member to provide elder care services and wish to fairly compensate them for their work. For more information on the rules governing hiring a family member as a caregiver, consult Publicación 926 del IRS  on pages 5-6, which outlines the limited family member exemptions from the employment taxes. These include your spouse, your child under age 21, and your parent (with certain exceptions). In general, other adult family members who receive a wage for their services are treated like any other employee.