How do i change a contractor to an employee

Changing your contactor into an employee is an easy step, @karrington.

You'll want to deactivate the contractor first before the transition to an employee. Here's how:

1. Sign in to your QuickBooks Online (QBO) account.
2. Click Payroll from the left menu, then select Contractors.
3. Find and select the contractor you want to change.
4. Under the name of the contractor, click the drop-down beside Active and choose Mark as inactive.
5. Then, add him/her as an employee in QBO.

I'm adding this article for more guidance: Change Employee To Contractor Or Contractor To Employee.

You might also want to check out this article to learn how to manage your contractors in QBO: Add, edit and inactivate contractors.

Please know that I'm just a reply away if you need any further assistance setting up contractors or employees. Have a good one!

I changed contractor to employee using these methods, however, QuickBooks Time still has him as a contractor and my payroll will not track his hours.

Greetings, @Tracey67. 

Hey, newcomer! I hope your day is going well so far. I can help provide you with some information to resolve this problem with your employee/contractor. 

Based on the details you gave and what I've seen reviewing your account, I recommend contacting our support team. They'll be able to use more advanced tools to take a closer look at your account to see why this is occurring in your QB Time account. Check out the link below for the direct phone number or steps on how to start a chat. 

• Contact QuickBooks Time support

Please let me know how it goes and what they say. I'll be here when you get back. Have a wonderful day! 

I tried to do this but I cannot add the person as an employee because it says I already have an employee or vendor with the same name.  I tried changing the middle initial so it would be different, but got the same message.

Thank you for bringing this to my attention. I understand that you encountered an error when trying to change a contractor to an employee. I replicated your concern and I'm here to share some fix, @CEvans0416. 

I was able to add the employee successfully after inactivating the contractor record. This seems to resolve the problem of having a duplicate name error. However, it's possible that the problem is specific to your browser.

To further troubleshoot this issue, I recommend following steps by signing in to your QuickBooks Online (QBO) account using a private or incognito window. This mode doesn't use the existing cache data and helps us confirm browser-related issues. Here's how:

• For Google Chrome browser: Ctrl + Shift + N
• For Mozilla Firefox browser: Ctrl + Shift + P
• For Safari browser: Command + Option + P

If it works, go back to your regular browser and clear the cache to delete those temporarily stored files and browsing history. The overtime collection of data can create corruption, however, removing this should fix the issue. You can also use other supported, up-to-date browsers to roll out the possibility of a browser-related issue.

I'm including these articles you can use in the future while going through tasks in QuickBooks Online:

• Create 1099 reports in QuickBooks.
• Troubleshoot missing contractors or wrong amounts on 1099s.

If you have more concerns about managing your employees and contractors, post here again. We are available 24/7 to lend a hand with each of your queries. Stay safe!

Thanks for the update, @CEvans0416.

We're glad to hear that the steps provided by my colleague have helped with your issue. And thank you for sharing. We want to ensure our users are on top of their business.

If there's anything else we can assist you with, please feel free to visit the Community. I'll be one message away if you need anything else. I wish you a prosperous rest of the year! Have a great day, and keep safe!