You can choose between mileage or actual expenses. In order to claim vehicle expenses and mileage, you need to add a vehicle to your business; here are the steps in TurboTax Online:
- Navigate to Federal > Wages & Income > Self-employment income and expenses
- Edit your business
- Choose add expenses for this work
- Choose Vehicle and Continue
- Vehicle now appears in the list of expenses, choose the pencil icon to the right of vehicle expenses
- Answer the interview questions about the vehicle, and enter the related expenses
As far as the employees, they should have their wages reported via a W-2, unless they are independent contractors and not employees (see: Independent contractor (self-employed) or employee?). If they are independent contractors, you can issue them a 1099. It is not allowed to pay employees and not pay the employer's share of their FICA tax. See: IRS Publication 15 Circular E, Employer’s Tax Guide
See: Tax Topics for Freelancers, Contractors, and Consultants