Select the name of the employee, then click Edit drop-down arrow.
Make the employee Inactive.
Once finished, slightly altered name to prevent duplicating name when changing an employee to a contractor. Then you can proceed in adding a contractor in QuickBooks.
That should answer your question. I'm just one post away if you have an additional question about transitioning your employee to a contractor. I'll get back to you as soon as I can. Have a great day!
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