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Join nowHi there, @cougar6620. I've got the steps on how to transition your employee to a contractor.
First, you'll have to change the employee's status to Terminated. Follow these steps:
Once done, you can proceed by adding a contractor.
Additionally, you might want to check out these articles to learn how to manage your contractors:
I'm just a reply away if you need any further assistance setting up contractors or employees. Have a good one.
Hi there, @cougar6620. I've got the steps on how to transition your employee to a contractor.
First, you'll have to change the employee's status to Terminated. Follow these steps:
Once done, you can proceed by adding a contractor.
Additionally, you might want to check out these articles to learn how to manage your contractors:
I'm just a reply away if you need any further assistance setting up contractors or employees. Have a good one.
Thanks for the quick response!
Rick
Hello,
I do not have the employee/contractor option in my QBDT? Would i just add new vendor?
Thanks
That's correct, @Nancy0503.
When adding a new contractor in QuickBooks Desktop, you'll need to add them as a vendor. I've included some steps to add the contractor below.
First, you'll want to make sure that the 1099-MISC feature is turned on:
Once you've turned the feature on, you're ready to add the contractor:
For additional information about tracking contractor payments for 1099s, check out Set up contractors and track them for 1099.
Let me know if you have any questions or concerns. Take care!
I also was wondering how to do this. I am using QB online and when I click on employees I don't see any options to change their status from active to terminated? I've created them as vendors which was easy enough but don't see how to edit to make all the payments that were paid to them as employees and change those to I guess vendors or contractors? Where is the best place to find this information? Many thanks!
Thanks for joining in on this thread, @gmtourism. Let me share the detailed guide on how we can change an employee's status to terminated and change their payments as vendors in QuickBooks Online (QBO).
To make an existing employee a vendor or contractor, we'll have to change their status to terminated so they'll no longer appear on your active payroll list.
Here's how:
Since you've already set up your employee as a vendor, we can enter their transactions as checks to classify them as vendor payments. Afterward, let's inactivate the employee.
Moreover, we'll have to file 1099s with the IRS if you pay your contractors in cash, check, or direct deposit. QBO helps you prepare your 1099 forms seamlessly using the information you have in your account.
Feel free to reach out to us if you have further concerns about managing your vendors. We're always ready to answer your questions. Take care!
Are you able to have the same person listed as a contractor and employee?
Hello there,
Yes, you can have the same person listed as a contractor and employee. Here's how:
To set up a contractor:
If you opted in for the email, wait for the contractor to fill out their info.
If you didn’t choose to send an email:
Then, to add an employee:
You can also visit this article for future reference: Create and run your payroll.
Feel free to post here again if you have further QuickBooks-related concerns. We are available 24/7 to lend a hand with each of your queries. Stay safe!
I have mis-categorized a contractor as an employee. Is there a way to fix this so that all the prior transactions are recorded correctly as payment to a contractor?
I can guide you through accurately recording your contractor's transactions, @Dfitness.
First, you can correct the transactions associated with the employee's profile. To do so, you can delete or void the paychecks. If needed, you can take note of the dates and amounts. Here's how:
If you can't make the change, you'll see an error message with an explanation. You can contact us for further help.
After removing the transactions, you can edit the employee's profile and update the name. Then, you can create and set up the contractor profile. Follow these steps:
After setting up the profile, ensure accurate details when recording transactions with contractors, including accounts, dates, amounts, and payment methods.
In case you want to prepare and file your Federal 1099s, you can visit this article for more guidance: Create and file 1099s with QuickBooks Online.
Please let me know if you have any follow-up concerns regarding your contractor's transactions. I'm always available to assist you.
My quickbooks online won't allow me to have a contractor and employee of the same name. It suggests I add a middle initial to vary the name but he doesn't have one. Is there a way to have the same name and multiple roles?
It's nice to see you joining this thread, @novabuild.
I take it that you're trying to add an employee and a contractor. However, the system won't let you create profiles with the same names.
What we can do, is add something on the contractor's name that would differentiate the employee's name. Thus, we're unable to add same names and multiple roles.
We're still looking for improvements on setting up profiles in QBO. We'd appreciate if you'd send this suggestion to our Product Development Team for them to review it and might in the future:
I'll show you how:
For youre future refeence, this article can help youfiling your W-2 forms: Print your W-2 and W-3 forms.
I'm still all ears if you need further assistance with your employees and contractors. Just add your reply below, and I'll circle back to help you.
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