@JPSUN When claiming the dependent care credit, you do not designate the tax status of the provider (whether household employee or self employed person). You just provide their SS#.
The grandparent makes that designation on their tax return. Since she sat, in your home, household employee is the correct designation. It would not be appropriate for you to issue her a 1099-MISC or 1099-NEC.
See my Jan 14, 2020 post, on page 1 of this thread, for how to do that.
