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Employee vs Independent Contractor

I have a gal who recently retired from her full-time job. She is on Social Security and I would like to have her work for me on a part-time basis. My office is in Delaware - she lives in NJ. What is the most advantageous way for her to be paid. If I make her an employee, can NJ taxes be withheld, as well as Delaware state tax?  Is this the best way for her vs being an Independent Contractor?  

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