It's my pleasure to guide you in converting a contractor to an employee, @COTH.
Before transitioning a contractor to an employee in QuickBooks, it is important to deactivate the contractor profile first. This is because QuickBooks doesn't allow employees and contractors to have the same name and will not recognize them as separate entities.
To deactivate your contractor, here's how:
Go to the Employees tab, and find the contractor to deactivate.
Tap the contractor's current status.
Click Edit next to Contractor information.
Choose Inactive from the Status drop-down list.
Hit Save.
Then, add them as an employee:
Select Workers, then choose Employees.
Hit Add an employee.
Fill in the necessary fields, then choose Done.
I'm adding these articles for more guidance, in deactivating contractors and adding new employees in QBO:
Moreover, you can refer to these articles to assist you in running, customizing, and printing payroll reports and paychecks, as well as preparing your tax forms in QuickBooks: