If she is an employee, you must pay wages, have withholding of federal and state income tax, social security and medicare tax, and issue a W-2. The wages and employer half of social security and medicare tax are deductible business expenses.
If she is an independent contractor/subcontractor, you must issue a 1099-NEC if you pay more than $600. You deduct the payment as a business expense, and she files a separate schedule C in her own name to report her business income, deduct any ordinary and necessary expenses she might have that are different from yours, and pay income tax and SE tax on the net profit from her business.
