This functionality (capturing contractor hours and converting them to a bill) is not a QuickBooks capability. I ran down this rabbit hole from several different directions and always hit a dead end. In my situation I wanted to pay contractors for work they did for my company, not my customers.

Once one discovers all the simple sounding functions that payroll doesn’t do the more you discover  that this is a brain dead over priced stone-age-primitive software component.

I had to resort to