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.

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.