Self employed

The IRS definitely allows non-profits more leeway with paying contractors/employees than they do for-profit enterprises.  Here is the language the IRS uses for the three tests for an employee-

U.S. Internal Revenue Service: The IRS primarily focuses on control and independence in the working relationship between an organization and the contractor. The IRS uses a three-factor test (Behavioral Control, Financial Control, and Relationship) to determine whether an individual is an independent contractor or an employee. The Behavioral Control prong examines the extent of control the hiring party has over what the work is and how the work is performed. The Financial Control prong assesses the extent of financial investment and risk taken by the worker as opposed to the organization. This can include how the worker is paid, how expenses are reimbursed and what tools/supplies the worker utilizes. The Relationship prong examines the nature and type of relationship between the parties, specifically with respect to benefits. The more control an organization exercises, the more likely the IRS is going to classify the worker as an employee rather than an independent contractor. Further information can be obtained from the IRS Website.

You said earlier that your daughter met with her supervisor once a week to receive direction.  That could be viewed as her being pretty self directed.  The IRs tends to lean heavily in the direction of "you are an employee" but it is not completely cut and dry.

On the upside for your daughter she can deduct expenses against her income, which is not the case for W2 employees.  If she is doing a lot of this work from home then she has some very basic expenses that the TurboTax system will walk you through entering so that you can reduce her taxable income.

@MDBostonMA