I have an employee that would like to change to contractor status- what are the steps to switching him over? It wont let him access 1099 set up due to a profile in place.

It's a pleasure to have you in the Community today. I'll help you set up an existing employee as Contractor in QuickBooks Online (QBO).

Before anything else, I'd like to discuss the why QBO won't let you add the same person as a contractor. The reason the program does this is to avoid getting your data all mixed up when it's time to run a report or when preparing your current year's payroll duties.

Now to get through this situation, you'll want to terminate the employee that you'd like to add as a contractor in your account. I'll input the steps below so you can proceed. To begin, here's how:

1. Access your QuickBooks Online company.
2. On the left navigational bar, go to the Payroll tab and then select Employees section.
3. Choose the employee you'd like to terminate, and then click on it.
4. Click the Actions button, and then select Change status.
5. On the Status section, click the dropdown arrow and then select Terminated.
6. Input the termination date.
7. Once done, press the Save button.

You can now add that person as a contractor in your account. Here are the steps:

1. Access your QuickBooks Online company.
2. On the left navigational bar, go to the Payroll tab and then choose Contractors.
3. Click the Add a contractor button.
4. You can uncheck the box beside Email this contractor to complete their profile if you want to set their details. You can also have them complete their profiles if you leave the box checked.
5. Once done, press Add contractor.

Feel free to visit this article for more details: Set up contractors and track them for 1099s.

In addition, I've got you these helpful resources to learn how you can manage your contractors in QBO:

• Which Contractors Need 1099s?
• View Vendor Transactions.

I'm a hundred percent sure that you can accomplish this, max-. Don't hesitate to comment below or post here again if you have any other QuickBooks-related concerns. Stay safe, and have a nice day!