How do I switch contractors from being under payroll to them as vendors (did only for 1)

Hi there, themobilepetspa.

Welcome to QuickBooks Community. I'll share steps to make sure you're able to add the contractors as vendors.

Currently, there's no option to directly switch the contractors to vendors. Since you've mentioned that these contractors are under payroll, it seems these persons are added as employees. If that's the case, you have to delete or make the employees inactive. Before doing this, you'll have to rename the employee's name first. This is because when you add contractors, you're unable to add them with the same name or details as other employees in QuickBooks Online.

Here's how to rename the employee's name:

1. Click the Payroll menu on the left panel.
2. Choose Employees section.
3. Select the employee's name. Then, go to the Employee details section.
4. Click the Edit employee button.
5. Rename the first name and the last name if necessary.
6. Click Done.

After that, you can now delete an employee if they don't have paychecks yet. If they already have one, we can only make them inactive. Please follow the steps below.

To delete an employee:

1. Go to Workers and select Employees.
2. Click the employee's name.
3. Select Edit Employee.
4. Choose Delete employee.
5. Select Yes to confirm the deletion.

To inactivate an employee, you can change their employment status to Terminated.

1. Go to Workers or  Payroll menu > Employees.
2. Select the employee's name.
3. Select the Edit (pencil) icon beside Employment.
4. From the Status drop-down, select Terminated.
5. Click Done.

Once done, you can now create or enter the contractors as vendors by adding them to the system. You can click this article to see the process: Add a vendor with a foreign currency in QuickBooks Online.

Please refer to this article to see steps on how you can run a specific report that will reflect all payments made to vendors: Run a report with vendor totals.

You’re always welcome to get back to me if you have other queries about vendors or contractors. I’d be more than happy to work with you again. Keep safe and take care.