If your daughter received a 1099-MISC with non-employee compensation in box 7, that means that the business is treating her as an independent contractor and not an employee. As an independent contractor, she is essentially a small one person business performing business services for clients. She may only have one client last year, but that is the technical nature of the relationship. She could work for other clients. She is required to file a schedule C, to report and keep track of all of her business income and expenses, and pay income tax and self-employment tax on the net profit from her business.
if you think she was missed classified and was actually in an employee-employer relationship and not a client-contractor relationship, there is a form you can file that will start an investigation of the employer and the IRS will make an official determination of whether she was an employee or a contractor.
