Yes. Her Box 1 wages are subject to ordinary income tax. If she wants to do federal withholding on her wages, she can give her employer a completed W-4 form and they will withhold federal income tax based on how she fills out the form. It is possible they were not required to withhold tax or she may have filled one out as an exempt employee. If she reported 'exempt' on the form W-4, they would not withhold taxes but the wages are still taxable.
What to know about the new 2020 IRS Form W-4 Employee’s Withholding Certificate @donthemon1
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