I need to add an employee that was previously a contractor under the same social security number. How can I do this when one payment was made to them as a contractor?

Hello there,

I'm here to guide you on the process of adding an employee who was once a contractor under the same Social Security Number (SSN) in QuickBooks Online (QBO).

Directly switching a contractor to an employee role is currently unavailable in QuickBooks. You'll have to make the contractor inactive first to avoid having duplicate details in your QBO account. Additionally, you'll need to modify the contractor's profile by adding extra characters to their name and entering a dummy SSN or deleting it. This will prevent QuickBooks from recognizing the employee as a duplicate and avoid any errors when creating the employee profile.

To modify a contractor's profile, follow these steps:
 

1. Click Payroll on the left navigation panel.
2. On the Contractors tab, select the contractor.
3. Click the pencil icon on the Personal details section.
4. Make the necessary changes.
5. Press Save.

Then, to make the contractor inactive, do the following:
 

1. Find and select the contractor you want to make inactive.
2. Under the contractor's name, click the Active dropdown.
3. Select Mark as inactive.

Once done, you can set up the contractor as an employee by following these steps:
 

1. Go to the Payroll menu. Then, head to the Employees tab.
2. Click Add an employee.
3. Add your employee's name and email address. You can choose to have them set up their profile through Employee self-setup.
4. Click Add employee.
5. Fill in the other necessary fields.
6. Click Save.

For more details on adding an employee to QuickBooks Payroll, check out this article: Add your new employee to QuickBooks Payroll.

If you need to add pay history to QuickBooks Online Payroll or run payroll reports in the future, check out these articles:

• Add pay history to QuickBooks Online Payroll
• Run payroll reports

Feel free to come back to this post if you need further assistance in adding a former contractor as an employee in QuickBooks. I'm always here to help.