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josbodybalance-g
Level 1

How do I add a contractor who is also an employee

I need to add an employee as an additional contractor, how do i do that?

1 Comment 1
ShangY
QuickBooks Team

How do I add a contractor who is also an employee

You need to set up the same individual with two separate profiles in QuickBooks, @josbodybalance-g.

If you already set up an employee in QuickBooks, you need to create a separate contractor profile. This way, you can properly track different payment types, tax liabilities, and issue the correct tax forms (W-2 and 1099-NEC) at the end of the year.

Also, QuickBooks does not allow two records with exact the same name. You need to create the contractor record with a slight variation of the name to distinguish it from the existing employee record. 

This is the error you’re going to see if you use the same names:

image.png

Here’s how to add your employee as a contractor:
 

  1. Go to Payroll and select Contractor.
  2. Click the Add a contractor button.
  3. Enter the name, but add a unique identifier to it. Example: If the employee is "Mary Jane," enter the contractor as "Mary Jane C." or "Mary C. Jane."
  4. Enter the contractor's email address.
  5. Click Add Contractor.


However, if this is a brand-new employee and you haven't yet set up their profile in QuickBooks, here is the setup process:
 

  1. Go to Payroll, then select Employees.
  2. Click the Add an employee button.
  3. Fill in your employee's details.
  4. Once done, click Add employee.

    image.png


After that, you can follow the steps above on how to add your employee as a contractor.
 

Feel free to message us again if you have further questions.

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