QB Issue Resolution:

Sorry, there is no way to make it applicable selection to certain clients only. “Items billable” on or off is a selection feature from form so it’s all or none.

Resolution for Issue 'Can I make a certain clients so it is not billable, but yet will show employee hours on the job? (This client is for internal purposes only).' available: Yes (Solved).
Source: Intuit Community forum.

Can I make a certain clients so it is not billable, but yet will show employee hours on the job? (This client is for internal purposes only).: this issue or error code is a known issue in Quickbooks Online (QBO) and/or Quickbooks. Support for this issue is available either by self-service or paid support options. Experts are available to resolve your Quickbooks issue to ensure minimal downtime and continue running your business. First try to resolve the issue yourself by looking for a resolution described below. If it is a complex issue or you are unable to solve the issue, you may contact us by clicking here or by using other support options.

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