Highlight the Workers tab.
Select Employees.
Search for the employee in question and click on it.
Click the Edit (pencil) icon beside the Employment section.
From the Status drop-down, select the appropriate status.
- Active
- Paid Leave of Absence
- Unpaid Leave of Absence
- Not On Payroll
- Terminated
- Deceased
Press Done.

Additional notes on what happens if an employee is set to either Terminated or Not On Payroll are found in this article: Delete or terminate an employee. Scroll to the bottom of the article for it.

In case you need to delete or void paychecks, see this article: Delete or void paychecks. Other than the steps, it contains a note as to how QuickBooks Online handles tax calculations for these voided or deleted checks.

Post a comment below if you need further assistance. I'll be sure to get back to you.

MillCity Hardscape

Hi there.

In the Employee section under the Employee that I need to make inactive, there is no Pencil Icon. All I can do is click on the Employee and not sure where to make them Inactive from there.

JoesemM

QuickBooks Team

Good day, @MillCity Hardscape.

It seems like you've posted this same question twice and was already answered by my colleague @Rubielyn_J. Kindly refer to my colleague's response through this link: https://quickbooks.intuit.com/learn-support/en-us/employees-and-payroll/re-how-do-i-make-an-employee-inactive/01/573911#M39569.

Feel free to post again or leave a comment below if you have any other concerns. I'll be here if you need further assistance. Take care and have a great day!

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