W2 with Box 1: Wages of $0.01

My sister received a W2 with Box 1: Wages of $0.01 and Box 16: State Wages of $160.00.  This is actually what her total earnings were.  No 1099 was received.  (I've learned since that 1099's are not issued for earnings less than $600.)

So when we try to process through TurboTax, it won't allow us to e-file. 

 

The employer says:

"For STATE purposes you are considered an employee and the earnings will show on the BOTTOM of the W2 for the STATE income.  NO FEDERAL income was reported to the IRS and the .01 is only in that box so the form will print.

You would be sent a 1099 for FEDERAL reporting as a contractor, ONLY if you received $600 or more dated in 2021.  You weren’t, therefore there won’t be one forthcoming."

 

Our question is:  How should we process this income in TurboTax?

Thank you for any guidance you can provide.