You have an ethical problem, and a professional responsibility. From the information you've given, these are W-2 employees. They have executed a barter agreement. That agreement has financial value that is taxable both as income and employment taxes. The failure of her to fulfill IRS guidelines will fall on you as her accountant.
@taxesohmy2017
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
