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Intuit

How to terminate an employee

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When terminating an employee it’s important to make sure that all outstanding monies owed to the employee are accounted for properly. All remaining wages and any vacation balances (if applicable) can be entered on either the regular pay cycle or an off-cycle run.

Using standard QuickBooks Online Payroll? Click here.

Here's how to terminate an employee:

  1. From the left menu, select Employees.
  2. Locate the employee you need to terminate, then select Terminate [Employee name] from the drop-down in the Actions column. The Terminate window will pop up, reminding you to run a final payroll for this employee prior to termination.
  3. Enter the termination date.
  4. Select the Reason for termination. This will show up on the employee's Record of Employment (ROE).
  5. You can also check any of three options provided:
    • Eligible for rehire: Use if you may rehire this employee
    • Request ROE: In most cases you need to provide and ROE for terminated employees. (For more information on ROE's, check out ROE Authorization)
    • Disable access: Disables their access to view pay cheques.
  6. Select Process termination.
Warning: For linked direct deposit accounts — If you're going to pay the employee by cheque, it is critical that you remove all bank accounts from the employee record so as to avoid double paying an employee. Here are the steps to do that:
  1. From the left menu, select Employees.
  2. Select the Active Employees drop-down.
  3. Select the employee from the list.
  4. Select the Direct deposit tab.
  5. To remove bank accounts from the employee's profile, select the drop-down in the Actions column, then select Delete.

Now you’re able to terminate an employee.