Switching an employee to a contractor is super easy, and I'll be happy to walk you through how to do it, paul-layer-esq-g.
When changing your employee to a contractor, make sure to terminate or Inactive your employee's active status first. Here's how:
- Go to Payroll, then choose Employees.
- Select the name of the employee, then click Edit drop-down arrow.
- Make the employee Inactive.
Once finished, slightly altered name to prevent duplicating name when changing an employee to a contractor. Then you can proceed in adding a contractor in QuickBooks.
For future reference, read through this topic to learn more about adding independent contractors and track them for 1099s in QuickBooks Online. This will provide you with more details on how to contractor works in QuickBooks as well as steps to track your expenses.
That should answer your question. I'm just one post away if you have an additional question about transitioning your employee to a contractor. I'll get back to you as soon as I can. Have a great day!