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02/09/12 8:27am PST

How do I convert an Employee to a 1099 Contractor

US QuickBooks Premier : 2011: Professional Services

I have paid a contractor for some services.  I inadvertently set him up as an employee originally, however, I should have set him up as a 1099 contractor.

Is there a way I can convert him from an employee to a 1099 contractor?  I have only paid him once.

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As far as I know, there's no way to convert from an employee to another type, and in this case you need a vendor. So I think you'll have to create a new vendor. On the vendor's "Additional Info" tab, select the "eligible for 1099" option. Since you only have one payment, it should then be easy to change the transaction to use the vendor instead of the employee.

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