How to convert an employee to an independent contractor (and back again)

Convert a worker from the People page: open their General Profile, click the ellipsis icon, then choose Convert to Independent Contractor or Convert to Active Employee. The system then routes you through the onboarding form.

What happens during a conversion

In both directions, the system retrieves the existing person and position information for the worker from the database. During the conversion procedure, the system routes you through the onboarding form so you can review the existing person and position information and enter new employment records.

Note: After you convert an employee to an independent contractor, and depending on your benefits setup of event rule classes for termination, the benefits of the person are terminated.

Convert an employee to an independent contractor

1. From the main menu, click HR > People. The People page opens.
2. Click the Filters button and add filter options to locate the employee that you want to convert to an independent contractor.
3. Click the person's name. The General Profile drawer opens.
4. Under the user image, click the ellipsis icon. The Actions menu opens.
5. From the Actions menu, under the Person section, click Convert to Independent Contractor. The Convert to Independent Contractor dialog opens.
6. Read the message, and click Continue. The system redirects you to the Start Process (Convert to Independent Contractor) form, which is the same as the onboarding form.
7. Follow the steps of the wizard to complete the procedure of converting the employee to an independent contractor.

Next steps: After completing the conversion, you can choose to View Employee Record, Add a New Hire, or click Close to return to the People page.

Convert an independent contractor to an active employee

1. From the main menu, click HR > People. The People page opens.
2. Click the Filters button and add filter options to locate the independent contractor that you want to convert to an employee.
3. Click the person's name. The General Profile drawer opens.
4. Under the user image, click the ellipsis icon. The Actions menu opens.
5. From the Actions menu, under the Person section, click Convert to Active Employee. The Convert to Active Employee dialog opens.
6. Read the message, and click Continue. The system redirects you to the Start Process (Convert to Active Employee) form, which is the same as the onboarding form.
7. Follow the steps of the wizard to complete the procedure of converting the independent contractor to an active employee.

Next steps: After the conversion, you can choose to View Employee Record, Proceed to Benefit Wizard, Add a New Hire, or click Close to return to the People page.

Note: After converting the independent contractor to an active employee, and according to your benefits setup, the HIR: Hire/Newly Eligible event might open for the person. The Proceed to Benefit Wizard option will be available in case the Social Security Number and Date of Birth fields in the Personal Information section have been populated.

Quick comparison

Frequently asked questions

Do I have to re-enter someone's details when I convert them?

No. The system retrieves the existing person and position information from the database, then routes you through the onboarding form so you can review that information and enter new employment records.

What happens to an employee's benefits when they become an independent contractor?

After you convert an employee to an independent contractor, the benefits of the person are terminated, depending on your benefits setup of event rule classes for termination.

Where do I find the option to convert someone?

From the main menu, click HR > People, click the Filters button to locate the person, and click their name to open the General Profile drawer. Under the user image, click the ellipsis icon to open the Actions menu, then under the Person section click Convert to Independent Contractor or Convert to Active Employee.

Can I enroll a newly converted employee in benefits straight away?

After converting an independent contractor to an active employee, the HIR: Hire/Newly Eligible event might open for the person, according to your benefits setup. The Proceed to Benefit Wizard option is only available if the Social Security Number and Date of Birth fields in the Personal Information section have been populated.

What can I do once the conversion is finished?

After converting an employee to an independent contractor, you can choose View Employee Record, Add a New Hire, or click Close to return to the People page. After converting an independent contractor to an active employee, you can also choose Proceed to Benefit Wizard.