You need to put this person on payroll if they are going to be doing work at your discretion, according to your instructions, and in your office or on your equipment.

There are many payroll service providers who can help you setup your employee on payroll and take care of everything for you for a modest fee. If you're the do-it-yourself type, I would recommend QuickBooks Online Payroll (formerly PayCycle), which will walk you through all the necessary steps.

I would also recommend that you contact the closest Small Business Development Center. They are there to help startups and small businesses and can probably tell you what the workers compensation requirements are for your state and any other state-specific information you may need.

HTH!
Deb