How to change an employee to a contractor?

Changing an employee to a contractor is quick and easy and I'd be glad to show you how, lindaleigh33-out.

Before you transition your employee to a contractor, you'll need to change their status from Active to Terminated first. Here's how:

1. Click Payroll in the left panel and choose Employees.
2. Select the employee's name and click the pencil icon beside Employment.
3. Choose Terminated under Status.
   
4. Hit Done.

Once done, you can proceed by adding a contractor with a slightly different name (maybe add the middle initial). You can either use Intuit Smith as the employee and then Intuit L. Smith as the contractor.

I'll be sharing with you this article: How to Add Independent Contractors and Track Them for 1099s in QuickBooks Online. This will provide you more details on how to contractor works in QuickBooks as well as steps to track your expenses.

Keep in touch if you need any more assistance with this or there's something else I can do for you. I've got your back. Have a good day!