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Make an active employee inactive in QuickBooks Online Payroll

by Intuit•4• Updated 2 weeks ago

When an employee is made inactive, you can set them as active again (or vice-versa) in QuickBooks Online Payroll with just few steps. When an employee’s status is inactive, they are not included in your employee count on your monthly subscription billing.

⚠  Billing change from 15 June 2026 — action required
From your first bill on or after 15 June 2026, how QuickBooks Payroll calculates your monthly employee fee is changing. Instead of being charged for employees payroll was run for during the month, you will be charged based on employees marked as Active at the start of your billing month (your Billing Day of Month, or BDOM).
To avoid being charged for employees who are no longer on your payroll, review and update employee statuses before 15 June 2026.
Employees who are not on the current pay run should be marked as Not on payroll. The steps below show you how.

Here's how to change an employee’s status:

Go to All apps A bunch of numbers and letters on a tile wall., select Payroll, then select Employees (Take me there).

  1. Select the Active Employees ▼ dropdown.
  2. Select All Employees.
  3. Select the employee, then select Edit in the Employment details section.
  4. Change their Status.
  5. Complete any additional necessary fields.
  6. Select Save when finished.

Your employee's status is now updated within your employee list.