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QuickBooks Online Payroll employee statuses

by Intuit•2• Updated 8 months ago

Learn about the different employee statuses in QuickBooks Online Payroll and when to use them.

Status	Description	Billable
Active	Employee is active and being paid	Billed
Paid leave of absence	Employee is on leave but will be paid	Billed
Unpaid leave of absence	Employee is on leave and will not be paid	Not billed
Terminated	Employee has been laid off and will not be paid	Not billed
Not on payroll	Employee is active but will not be paid	Not billed
Deceased	Employee has passed away	Not billed

The reason for a status change

CRA requires that a Record of Employment (ROE) should be completed whenever the employee experiences an interruption of insurable earnings. To track the reason for the status change, CRA has assigned codes to the most common reason for issuing ROEs.

Code A - Shortage of work (layoff)	● Use this code when the employee is laid off. For example (this list isn't exhaustive): ● End of contract or season ● End of casual/part-time work ● End of school year ● Temporary shutdown of operations ● Permanent shutdown of operations ● Position eliminated/redundant ● Company restructuring ● Employer bankruptcy or receivership
Code B - Strike or lockout	Use Code B when an employee is on strike or has been locked out of the workplace.
Code D - Illness or injury	Use Code D when the employee is leaving work temporarily because he or she is ill or injured.
Code E - Quit	Use Code E when the employee initiates the separation from employment. For example (this list isn't exhaustive): ● To take another job ● To relocate with spouse ● To return to school ● To voluntarily retire ● For health reasons
Code F - Maternity	Use Code F only when a person who is pregnant or has recently given birth is leaving the workplace to take maternity leave. This doesn't apply to adoptive parents or a parent who isn't pregnant or hasn't recently given birth.
Code G - Retirement	Use Code G when the employee is leaving the workplace because of mandatory retirement or through a Work Force Reduction approved by Service Canada.
Code H - Work-Sharing	Use Code H when the employee is participating in the Service Canada Work-Sharing Program.
Code J - Apprentice training	Use Code J if the employee is leaving the workplace temporarily to participate in a government-approved apprenticeship training program.
Code M – Dismissal or suspension	Use Code M when the employer initiates the separation from employment for any reason other than layoff or mandatory retirement (that is, the employee is leaving the workplace because he or she has been dismissed by the employer). Also use this code when the employee is suspended from their employment. This code is also used when employment is terminated within a probationary period because the employee was not well-suited for the position (that is, the employee was not able to satisfactorily perform the duties of the position).
Code N - Leave of absence	Use Code N when the employee is leaving the workplace temporarily to take a leave of absence. If the employee is taking any period of unpaid leave, use Code N.
Code P - Parental	Use Code P if the employee is leaving the workplace temporarily to take parental or adoption leave.
Code Z - Compassionate care/family caregiver	Use Code Z if the employee is leaving the workplace temporarily to claim compassionate care benefits, or family caregiver benefits.
Code K - Other	The vast majority of reasons for issuing an ROE are covered by the above codes. Use Code K only in exceptional circumstances (see examples below). If none of the above reasons apply to the situation, use Code K, and provide an explanation in Block 18 - Comments. For example (this list is not exhaustive): ● Change in payroll/ownership or company name ● Change in pay period type ● Death of an employee ● Service Canada has requested the ROE

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