A contactor was converted to an Employee in 2023. They had over $600 in contract pay in Jan of 2023. They were on payroll the rest of the year. Do I send a 1099?

A warm welcome to the Community, @dan224.

I'm here to help you in confirming if you need to file a 1099 for your contractor paid in January 2023. 

US tax law requires filing a Form 1099-NEC for anyone who paid $600 or more in the previous year, including contractors, freelancers, vendors, and non-employees subject to backup withholding. On the other hand, if you paid a vendor, attorney, or non-contractor $600 or more, you can file a 1099-MISC. I recommend consulting your tax professional or reaching out to IRS support to confirm if you need to file a 1099 for your contractor paid in January 2023.

If you've confirmed that your contractor needs to file either 1099-NEC or 1099-MISC, you can recreate the contractor with a middle name in QuickBooks Online (QBO) to avoid a duplicate name error message. Additionally, you'll also have to recreate the contractor payments as checks or bill payments if deemed necessary. Here are the general steps in recreating the contractor:

1. Go to Expenses, then select Contractors.
2. Select Add a contractor.
3. Enter the name with a middle name. You have the option to uncheck Email this contractor to complete their profile.
4. When you're done, select Add contractor.
5. Complete their personal details.

As an additional help, let me add this guide about understanding payment categories for the 1099-MISC and 1099-NEC.

We're always here in the Community should you need further assistance recreating a contractor in QBO. We'll do our best to assist. Take care.