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In Quickbooks Online, I created my contractors as employees by mistake. They have already been entering their time in the system for several weeks now. I am now trying to convert those employees to contractor status in the system but am not able to.
I tried the steps here: https://quickbooks.intuit.com/learn-support/en-us/set-up-contractors/change-employee-to-contractor-o... but that doesn't work because when I try to make an employee inactive I get the following error message:
Also, how do I now add time for vendors? The system allows me to add time only for employees and not for vendor!
Thanks for adding more details about your concern, english_august.
In QBO, you can create a time sheet for the vendors. However, automatic transferring of time sheet data to bills is currently unavailable. You’ll have to manually enter a check or bill to pay the suppliers.
Let me share the following articles for more insights into the Time Tracking feature. From there, you’ll find the complete steps on how to add or edit timesheets, approve time data, etc.
If you have any clarifications or other concerns, click the Reply button and post a comment. I’m more than happy to answer them for you.
Thank you for your response. It is not clear to me if the functionality to have vendors enter timesheet is available to me in QuickBooks Plus. Do I need to add on Payroll or Time functionality?
Why is this so convoluted and hard? All I want to do as a small business is to allow a handful of contractors to be able to enter their time and then based on their contract rate and billing rate, populate my invoices to customers and expenses automatically. I am spending more time figuring out QuickBooks functionality than actually running my business.
Hello there, english_august.
I can see the importance of using QuickBooks functionality that helps you run your business smoothly and easier.
If the contractors are not part of payroll, it's okay to not have a payroll subscription. You can add them as Time tracking only user in your QuickBooks Online (QBO) account. This way, they'll be able to access timesheets. Take a look at these steps on how to do it:
On the other hand, if these contractors are part of payroll, I'd still recommend following the suggestion shared by my colleague Rasa-LilaM above. You can check this article for additional insights: Turn on and set up time tracking in QuickBooks Online.
Please let us know if you have other concerns. Stay safe always.
Welcome back to this thread, @english_august.
I'm here to provide insights about the error message that you're getting "Vendors with 1099 tracking turned on can’t be added as time tracking users at this time."
You can add your vendors as Time tracking only users as long as they haven't reached the 1099 threshold ($600 in a calendar year). Otherwise, you won't be able to add them as Time tracking only users. Hence, you'll need to enter the timesheets on their behalf.
As for the email, you'll need to use an alternative email or have the current one edited at accounts.intuit.com. Then, send a new invite to the desired email. This way, you'll be able to add a new time tracking the user.
On the other hand, if these contractors are part of payroll, I'd still recommend following the suggestion shared by my colleague Rasa-Lila above. You can check this article for additional insights: Turn on and set up time tracking in QuickBooks Online.
Also, you can always visit our Help articles page for reference. There, you can read some of the helpful articles that will guide you in your future tasks.
I appreciate your patience with this. The Community Team is always here to ensure your success with QuickBooks. Take care always.
$600 / calendar year limit on that feature means that I cannot really add my vendors as Time tracking only users since all of my vendors will end up getting paid more than that amount/year. So that option is a no-go for me from that perspective. I don't understand the reasoning behind that limit. And if I do have to enter time sheets on their behalf, how do I do it because those vendors don't show up as a selectable option from Time > Add time pop up box (only time tracking employees show up).
So, is there another option for me to let my vendors directly add their time? When you say that - "On the other hand, if these contractors are part of payroll" what do you mean? Do I need to upgrade to Payroll to use this option?
I can provide additional information about your contractors in QuickBooks Online (QBO), english_august.
You're unable to enter time sheets on their behalf through QuickBooks Time since vendors with 1099 tracking can't be added for time tracking.
In QuickBooks Online, you can use the single time activity or weekly timesheet, and enter their hourly rate. If you need to enter multiple hourly rates, that's the time you need to sign up for the Payroll service.
Also, I'm adding this link to clarify things out: What's the difference between employees and independent contractors?
If you have more questions about tracking vendors' time using QuickBooks Time, I suggest contacting them using this link: Contact QuickBooks Time support.
Keep me posted if you need additional information about this by commenting below. I'll be right here to help you.
Thank you for your patience with my questions.
I am not able to enter time sheets for my vendors even manually because vendors are not available to be selected from my time sheets menu. I see only employees there. What gives?
More broadly speaking, I find it incredibly frustrating that my workflow is not an outlier workflow and is pretty common for small business tech consulting companies. How have Intuit's product managers not made an attempt to make this better?
Thanks for getting back to this thread, @english_august.
At the moment, vendors with 1099 tracking turned on can’t be added as time tracking users in QuickBooks. This is why you can't select them in the timesheets menu.
However, you can set up a new vendor and modify its name so that you can add them as a time tracking user.
I can see how this option would be helpful for you and your business. Therefore, let me take note of this as a suggestion to improve your QuickBooks experience.
Also, our developers based the adding of features by the number of requests they received from customers like you. If you haven't sent any feedback yet, here's how you can submit it:
This request will go straight to our Product Development team where they can review it for future updates.
You can visit our Firm of the Future site. This is where we share recent happenings and future developments, such as updates to newly added features.
Please let me know if you need clarification about this, or there's anything else I can do for you. I'll be standing by for your response.
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