Many users think of this task as changing a vendor into an employee, but when the vendor is an independent contractor, what you really want to do is change the vendor to a 1099 vendor. What's the difference?
To do this task
From the Vendors menu, choose Vendor Center.
Right-click the vendor you want to change to a 1099 vendor, and click
On the Address Info tab, make sure:
The vendor's legal name appears in the First Name, M.I., and Last Name
The vendor's address contains the two-letter state abbreviation and the
Click the Additional Info tab.
Enter the vendor's tax ID number.
If the vendor is a sole proprietor, enter the vendor's Social Security
number. Otherwise, enter the vendor's nine-digit tax identification
Click the Vendor eligible for 1099 checkbox.
If you don't see this checkbox, you need to set up QuickBooks for 1099