I have an employee who is now a sub contractor, it's not allowing me to setup as subby, as it says employee name in use. It also won,t allow me to delete him as employee?

Welcome to the Community space, David. I'll help you add an existing employee as a sub-contractor inside QuickBooks Online (QBO).

Before anything else, know you'll want to change the employee's status to Terminated. This way, the system recognizes that the person is no longer working for your business as an employee. We'll gladly write down the steps to get you going:

1. Access your QuickBooks Online company.
2. On the left navigational bar, click the Payroll tab and then choose Employees.
3. Locate the employee that you want to terminate and then click on it.
4. Click the Edit button in the Employment details section.
5. In the Status field, click the Dropdown arrow and select Terminated.
6. Select the Got it button and then click the date of employee's last day of Active status.
7. Once done, click the Save button.

Once done, you can start adding the employee as a contractor inside your company. For further guidelines, please see this page: Add contractors or subcontractors in QuickBooks Online.

In addition, here are some articles to help you keep track of contractors and transactions inside the program:

• Turn on CIS in QuickBooks Online
• How to create CIS transactions in QuickBooks Online

It's been a pleasure to have you here today. As always, if you have other questions related to QuickBooks or need assistance completing tasks. Feel free to comment below so we can get back to you as soon as possible. Have a good one.