That's correct @Pl1 , you can't have a person be an active 1099 contractor and W-2 employee at the same time.

To change the persons employment classification, you'll need to disable the profile in contractors/employees and then re-activate that profile in Payroll employees/contractors. When you go to add the person to Payroll Employees, you should click on Add Employee and you'll see the persons name in the rolodex of potential employees names.

The employees personal information should be saved but if you're changing or adding a person as a W-2 employee you'll need to get in contact with our Payroll team.