Can you change an employee to a contractor?

Thanks for dropping by the Community and conveying your concern about changing your employee to a contractor. Don't worry! I've got you steps to achieve this.

Go into your payroll system and change your employment status. You can follow these steps for any QuickBooks or Intuit payroll product:

1. Go to Payroll, then Employees.
2. Choose your employee. Click All Employees from the Active Employees ▼ dropdown if the employee is not on the list.
3. From Employment details, select Start or Edit.
4. Choose Terminated from the Status ▼ dropdown.
5. Pick Save.

Once done, you can proceed to add a new contractor. These are the steps:

1. Go to Expenses, then select Contractors.
2. Select Add a contractor
3. Enter your contractors' info, or select the Email this contractor checkbox so they can fill it out.
4. Click Add Contractor.

If you opted for the electronic mail, wait for the contractor to fill out their info. If you did not choose to send an email:

1. Select Add next to Personal details or Bank account and enter the contractor info. 
2. When finished, pick Save.

I'm including these articles you can use in the future while going through tasks in QuickBooks Online:

• Create 1099 reports in QuickBooks.
• Troubleshoot missing contractors or wrong amounts on 1099s.

With those guidelines, you can successfully change your employee to a contractor. If you have more questions about managing your employees and contractors, post here again. We are available 24/7 to lend a hand with each of your queries. Stay safe!