The employee types are as follows:
Regular = W2
Contract = 1099
The employee type cannot change.
Instead, you will need to terminate the employee with the wrong type and create a new employee with the correct type. If there aren't any checks created for this employee, the employee type can be changed without terminating the employee. You will need to reach out to us for this.
1) To create a new employee, see the following article: Payroll: Add new employee
2) Be sure to select the correct type:
3) In the Duplicate SSN popup, click Yes.
Something to be mindful about:
If the employee was incorrectly set up as a W2, and during the year was changed to a 1099, the employee had withholdings through out the year until the change was made.
If the employee was incorrectly set up as a 1099, and during the year was changed to a W2, you should be mindful that the employee may not have enough withholdings for the year.
Please reach out to us if you have any questions pertaining to this change.