Hi! When adding a subcontractor to my payroll...does system see them as sub or employee? So far it's asking me for W4 info. Thanks!!

A subcontractor is not an employee and unless you categorized them wrong as a sub when they are an employee by law should never be in your payroll. You create vendor payments for them just like paying Home Depot or the gas company, or your QB subscription.

You can, if you have a QB payroll program, pay your subs by direct deposit but it is a separate withdrawal from your checking even though you use your payroll PIN to process.

A subcontractor or any business eligible for a 1099 must provide you with a W9 (as well as their certificate of insurance or you must include them on your workers comp). W2 is for employees only.

So if these are subs, then W4 is incorrect.

You are possibly trying to add them in payroll as Workers. Create them as Vendors. There should, in my opinion, not be two ways to add 1099 entities. A vendor is a vendor, someone you pay for goods and/or services that does not qualify as an employee. A subcontractor by any other name is a vendor.