She would likely be considered a subcontractor in the eyes of the IRS due to the nature of the job. You don't need to issue her a form 1099 since it is not required since she earned under $600. She should file a tax return since she earned $400 or more. You would report the income as income from self-employment. She doesn't need to make estimated tax payments if her total tax is less then $1,000 for the year. If you treat her as a subcontractor, then all you need to do is file a personal income tax return, as she will pay self-employment tax (social security) with her personal tax return form 1040.
@Anonymous
[Edited 2/3/22 @ 5:34 PM PST]
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