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QuickBooks Online Payroll employee statuses

by Intuit Updated 4 months ago

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

StatusDescriptionBillable
ActiveEmployee is active and being paidBilled
Paid leave of absenceEmployee is on leave but will be paidBilled
Unpaid leave of absenceEmployee is on leave and will not be paidNot billed
TerminatedEmployee has been laid off and will not be paid Not billed
Not on payrollEmployee is active but will not be paidNot billed
DeceasedEmployee has passed awayNot 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 lockoutUse Code B when an employee is on strike or has been locked out of the workplace.
Code D - Illness or injuryUse Code D when the employee is leaving work temporarily because he or she is ill or injured.
Code E - QuitUse 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 - MaternityUse 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 - RetirementUse 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-SharingUse Code H when the employee is participating in the Service Canada Work-Sharing Program.
Code J - Apprentice trainingUse Code J if the employee is leaving the workplace temporarily to participate in a government-approved apprenticeship training program.
Code M – Dismissal or suspensionUse 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 absenceUse 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 - ParentalUse Code P if the employee is leaving the workplace temporarily to take parental or adoption leave.
Code Z - Compassionate care/family caregiverUse Code Z if the employee is leaving the workplace temporarily to claim compassionate care benefits, or family caregiver benefits.
Code K - OtherThe 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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