Good to see you in this thread, @kci-dan.

I'll share more details about changing contractors into vendors In QuickBooks Online (QBO) so you can mange your list and expense transactions accordingly.

Yes, a vendor can be removed from the Contractors list but retained as a regular non-1099 vendor by unchecking the Track payments for 1099 option in their profile. However, you're unable to reverse or change a contractor into a vendor in QBO. You'll have to create a new vendor profile using either a different name or choose a name one keystroke different from the contractor name. This is because QBO doesn't allow duplicate names.

Also, you may want to check out this article as your reference to answer the most commonly asked questions about 1099: Get answers to your 1099 questions.

I'm all ears if you have other concerns about managing vendors and contractor list and tracking 1099 transactions in QBO. You can drop a comment below, and I'll gladly help. Take care always, @kci-dan.