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The two girls that want to work for my Mom are going to be Private contractor? What I mean is they are saying they are not Moms employee and they will be paying all their own taxes... Is this allowed by the IRS?

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Sure. The employer provides a form 1099 that shows what has been paid, and the independent contractor pays taxes based on that.

You may want to discuss this with your Mom's insurance agent, to see about what would happen if one of them has an accident on the job.
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