Can I modify an Employee to Contractor? I mistakenly created an Employee for my company, but this individual is 1099. I am unable to "delete" employee.

You cannot change type but you can add as a Vendor. There is a prohibition against duplicate names so enter as vendor with a slightly different name. A period at the end works. Or edit the employee name to something different and then create them as vendor. You can deactivate the employee name.

That's too bad it can't be changed when an individual was setup in error as employee. If your tsheets are syncing to qbo for that individual, then once you make the new vendor in QBO, it will sync to tsheets and you have to have your individual use a brand new tsheets login to log their time. So all their old reports  for years (under their employee designation) will be separate from all of their new reports (as vendor), even though they were always technically a vendor.

Understand this is in place to ensure all payroll records are 100% and no employment laws are being violated (can't erase history that an employee was an employee even if hired for one day), but for us, we never used Intuit payroll, this person was never tied to that nor ever needed to be. Intuit could sort this out and not keep this requirement unless the individual was tied to payroll, in my opinion. In fact, that is really the solution...to tie the "Employee" designation to Intuit's payroll moreso than inside of Intuit's QuickBooks Online product. It's not like other payroll systems like Gusto/ADP/Paychex are required to use the Employee designation inside of Intuit...they don't use it at all...the employee designation is in the payroll tool only.