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Sapan - Product Champion
Content Creator

Terminate employee and pay off the remaining annual leave.

1 Comment 1
QuickBooks Team

Terminate employee and pay off the remaining annual leave.

Hi there, Sapan - Product Champion.


Thank you for posting here in QuickBooks Community. I can provide steps on how to terminate an employee and pay off the remaining annual leave in QBO.
You'll have two options on how to terminate an employee. Through Employee Details and via the pay run. Please note that you will not be able to terminate if there are any unfinalised pay run for employee. If that's the case, I suggest finalising them first.
Here's how to terminate an employee within Employee Details:
1. Click the Employees tab from the left panel.
2. Choose the name of employee you want to terminate.
3. Choose Terminate Employee from the bottom of the page.
4. Enter the termination date and choose Terminate.
Please follow these steps if you want to terminate via the pay run:
1. Choose the Employee tab at the left navigation.
2. Choose New Run.
3. Fill in the necessary fields and then, choose Create.
4. Select the employee you wish to terminate.
5. Hit the Actions button. Then choose Terminate Employee.
6. Put the employee's termination date.
7. Choose Save.
Once done, employee shows as inactive and you'll no longer be able to process pay runs for them.
For your other concern, the system will automatically calculate the accrued leave to be paid out as part of the employee's termination pay. Just make sure the Pay out option is selected.
For additional information, please check this article: Terminating an Employee. This also contains steps on how to cancel a termination if you want to reactivate the terminated employee in the future.

Please know that you're always welcome to post if you have any other concerns. Wishing you and your business continued success.