Try to check for existence:
IF NOT EXISTS (SELECT * FROM dbo.Employee WHERE ID = @SomeID)
INSERT INTO dbo.Employee(Col1, ..., ColN)
VALUES(Val1, .., ValN)
ELSE
UPDATE dbo.Employee
SET Col1 = Val1, Col2 = Val2, ...., ColN = ValN
WHERE ID = @SomeID
You could easily wrap this into a stored procedure and just call that stored procedure from the outside (e.g. from a programming language like C# or whatever you're using).
Update: either you can just write this entire statement in one long string (doable - but not really very useful) - or you can wrap it into a stored procedure:
CREATE PROCEDURE dbo.InsertOrUpdateEmployee
@ID INT,
@Name VARCHAR(50),
@ItemName VARCHAR(50),
@ItemCatName VARCHAR(50),
@ItemQty DECIMAL(15,2)
AS BEGIN
IF NOT EXISTS (SELECT * FROM dbo.Table1 WHERE ID = @ID)
INSERT INTO dbo.Table1(ID, Name, ItemName, ItemCatName, ItemQty)
VALUES(@ID, @Name, @ItemName, @ItemCatName, @ItemQty)
ELSE
UPDATE dbo.Table1
SET Name = @Name,
ItemName = @ItemName,
ItemCatName = @ItemCatName,
ItemQty = @ItemQty
WHERE ID = @ID
END
and then just call that stored procedure from your ADO.NET code