The question here begs the answer, did your daughter ever get a payroll check with taxes withheld or did she just get a check written out to her name? If payroll taxes were withheld, she was hired as an employee. If they were not withheld, she was contracted with to receive a certain amount of money. The Federal Government and the State have a lot of publications regarding whether she is an employee or not. Some of the questions are: Does the person Employing or Contracting with the Daughter, give your daughter the tools to work with, training, tell her what time she has to work and how she has to do her job and exercise reasonable control over her work. Then, there may be an argument that she actually was an employee if the answer is yes to any of those questions. My best thought though here, is did she fill out a W-9, which means she is contracting or did she fill out a W-4, which means she is an employee.
