Exemption from Taxes

We have someone who we have been paying contract labor to do some courier work on a temp basis... we are keeping him on now so we need to convert him to an employee so he will be covered under our Worker's Comp coverage...since he is at full retirement age he says he doesn't have to pay ANY taxes. I know there is an option to claim exempt on the W-4 for withholding but as far as I know there is not an exemption from paying Social Security & Medicare wages....am I missing anything?

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