Am i able to set up an employee as a 1099 vs. W2?

Yes, you can categorize an employee as both a 1099 and W-2 in QuickBooks Online (QBO), Phil. I'm here to explain the distinction between the two.

The main difference between 1099 and W-2 is that you issue 1099 forms to independent contractors and issue W-2 to full-time employees. Moreover, 1099 workers file their payroll taxes while you deduct payroll taxes from your W-2 employee's paycheck. 

Here's how to set up a contractor for 1099s:

1. Go to Payroll and select Contractors.
2. Click Add a contractor.
3. Enter your contractor’s info, or select the Email this contractor checkbox so they can fill it out.
4. When you're done, select Add contractor.
5. If you opted in for the email, wait for the contractor to fill out their info. 
6. If you didn’t choose to send an email proceed to steps 7 to 10.
7. Fill in the Name field and click Add contractor.
8. In the Contractors's profile, click Add to input the Personal details.
9. Choose a contractor type and fill in the necessary details.
10. Once done, click Save.

On the other hand, when you set up an employee, they will be automatically set up to a W-2:

1. Go to Payroll and select Employees.
2. Click Add an employee.
3. Fill in the name, email, and hire date of your employee.
4. Tick Yes, allow employee to enter their tax and banking info in Workforce if you want them to fill in their info. Doing so will make QuickBooks send an email invite to them through QuickBooks Workforce.
5. Select Add employee.
6. If you want to fill in their details, untick the Yes, allow employee to enter their tax and banking info in Workforce box, and follow the steps below.
7. Select Start or Edit to any section to add the remaining employee info. Please note that if employee self-setup is enabled, you won't be able to edit certain fields in the Personal Information, Tax Withholding, or Payment Method sections. If you want to edit these tabs, you can disable Employee self-setup under Personal Info at any point.
8. When finished adding info to a tab, select Save.

You can then refer to these articles to file them:

• File your W-2 and W-3 forms
• Create and file 1099s with QuickBooks Online

Additionally, you can run payroll reports to get a comprehensive overview of your business's payroll activities.

Let us know if you have other concerns with 1099 and W-2. We're here to help you in any way we can.