how to change employee to 1099

Welcome to the Community space, @dwayne9.

You've come to the right place for help, I know how you can change an employee to a contractor.

You may need to enter the employee again to be a contractor and enter a unique identifier such as a syllable or character to make it slightly different. This is to prevent entering the same name when adding an employee as a contractor. 

You can also change the name of the employee to a different one. Then, enter the real one with a middle name for the contractor. 

To do this, here's how:

1. In the left menu, click Payroll.
2. Go to the Employees tab.
3. Locate and click the name of the employee.
4. Click Edit employee.
5. Go to the Pay tab, then change the name.

Once done, go to the Employment tab and change the status of the employee when needed. Then, follow the steps in adding a contractor in QuickBooks. 

I'd also recommend recreating their contractor profile in QBO. You can then re-enter contractor payments as either checks or bill payments if necessary. 

For future reference, read through this topic to learn more about adding independent contractors and track them for 1099s in QuickBooks Online.

Return to this post if you have other concerns about setting up your employee as a contractor in QBO. I'll be here to lend a hand.