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accounts63
Level 3

Re-instating Terminated Employees

I am attempting to re-instate an inactive/terminated employee as she has started to work again. I can access her employee file but I see no option to re-instate her.

 

Is this something that QB has removed? I recently had problems terminating employees from this page and the reason was that QB removed the option. 

 

But this time I don't see any alternative ways to do what I need. One solution I found online was to create a second employee with the same details. This seems inefficient and I would expect alerts telling me I can't have two employee files with the same details. Surely there's a better way?

 

Help from QB would be appreciated.

11 REPLIES 11
MariaSoledadG
QuickBooks Team

Re-instating Terminated Employees

I'm here to help you reinstate your terminated employee, accounts63.

 

When an employee is re-employed, they'll have to be classified as a new employee. Reactivating them may cause issues with HMRC reporting since P45 has been erased and reset by the system. 

 

You can rollback or delete the payroll to when the employee was reactivated and use the Terminate button on the employee's profile instead of the pay run. 

 

 

Once done, create a new employee

 

On the other hand, if you're using QuickBooks Online Advance, we have removed the Terminate employee button within the employees' profile. 

 

For future reference, please check this article for your guide: QuickBooks Online Payroll Hub.

 

You can always touch base with us if you have questions about payroll. We're always to get back to you anytime.

accounts63
Level 3

Re-instating Terminated Employees

Hello there. Thanks for the response but you didn't quite answer the question.

 

I should have made clear I'm using QB Online Advanced so I can't roll back as I could on Desktop.

 

Can you confirm the 'Re-instate' button has also been removed with the 'Terminate' button. (I'm sure it used to be there, but it's hard to remember when things are removed with no warning).

 

The work-around that I have done is to create a new employee. This seems wrong.

 

I have employees who move in and out of my employment as they change jobs and pick up occasional shifts. This can happen over several years. If I have to create them as a new employee every time they come back to work, I would potentially end up one employee having several different duplicated record. Is this satisfactory? I'd suggest not. I used QB Desktop for 10 years and re-activated terminated employees all the time with no problems.

 

The other option would be to make an employee 'inactive' so they don't appear in pay runs, but they remain on the payroll. But QB Online removed this a few months ago. So if I leave anyone on payroll, they appear in every pay run and I have to manually exclude them.

 

This seems like yet another thing that has not been user tested in the real world. If there is no way to re-instate old employees then I suggest QB find a better way of doing things than creating new employee records.

GeorgiaC
QuickBooks Team

Re-instating Terminated Employees

Hi accounts63

 

Thanks for getting back to us. You're right that the option to terminate the employee from the employee details screen has been removed, this was because terminating the employee within the settings was internal and did not report this to HMRC through the FPS. Similarly, the employee will need to be created as a new employee with a new start date when returning, with any year to date figures from other employers since leaving, so that HMRC are notified that the employee is now working for the company and so that the tax can be recorded correctly. 

 

Please get back to us below if you have any further questions and we'll pick these up with you!
 

accounts63
Level 3

Re-instating Terminated Employees

Thanks for the explanation.

 

I ran payroll yesterday and came across another issue. You can actually pay inactive/terminated employees.

 

There is an option in the pay run to add employees and there is nothing stopping you adding inactive ones. I did this yesterday and processed payroll for an inactive employee without adding a new start date or anything.

 

After submitting, the employee is still listed as inactive. There is a note on the employees page saying their employment ended on 2/10 but their last payment was on 23/10.

 

Surely this is an error with QB and I shouldn't have been able to do this? If not, can you explain why I would want to pay inactive employees but not bring them back in my employment?

GeorgiaC
QuickBooks Team

Re-instating Terminated Employees

Hi accounts63,

 

The ability to manually add an inactive employee onto the pay run is to allow for payment after leaving, this option shouldn't be used to continue to run the employee on the payroll as this will not inform HMRC that they are an active employee and will not allow you to mark them as a leaver again/generate a second P45 document. 

 

Thanks 🙂

 

 

accounts63
Level 3

Re-instating Terminated Employees

Interesting. You say it is for paying the employee after leaving, but that nothing will be sent to HMRC. What would be the purpose of the payment?

 

Considering things have been removed to avoid reporting issues to HMRC, it seems odd that you would allow employees to be paid when they are inactive and therefore nothing gets sent to HMRC. This seems like a loophole that needs closing.

 

Back to re-instating employees - because I now have to create someone as a new employee rather than re-instating them, this presumably means they will get two P60s at year end. This surely can't be right? When I give someone two P60s in April I will have to explain it's because Quickbooks removed a button and I had to effectively duplicate their employee record.

 

I really think QB have made this much worse without considering the consequences and it needs changing back to the way it was.

GeorgiaC
QuickBooks Team

Re-instating Terminated Employees

Hi accounts63,

 

HMRC will see this payment after leaving on the FPS, this will show that the payment is for an inactive employee with the employee's payroll ID. Running an inactive employee on the payroll will not send the information that this is a new employee who is in active employment with the company. 

 

An employee must be issued with a P45 each time they leave employment and they would receive this upon leaving, not at the year-end (unless of course, they leave at the year-end). If your employee is for example a seasonal worker then you would not record them as a leaver and new employee each time they returned to work. 

 

Thanks

accounts63
Level 3

Re-instating Terminated Employees

Apologies - I meant to say P60 (end of year tax certificate). I think I'm right in saying someone could get more than one, if I am duplicating them when they return to work.

 

I take your point about seasonal workers. The problem is when no one knows if they are going to return to work. On my payroll there are lots of young people who work when home from university, but it is always hit and miss whether they return to work or not.

 

This is where the old 'inactive employee' option came in useful. You could classify them as inactive so they don't automatically appear in each pay run, but they are still classed as employed. If I leave them all on payroll then each week I have to manually remove them all from every pay run. It's not a major problem but it is just one of many things that QB make worse by changing things.

 

In summary, QB need to design a way of re-instating old employees by having a button in the Employee Details page which sends a notification to HMRC that they have restarted. As it stands QB have simply removed to old option entirely, rather than fixing something that wasn't working properly.

EmmaM
QuickBooks Team

Re-instating Terminated Employees

Hello Accounts63, we do take on board your point about seasonal workers, and as you say you do not know whether they will return. We'd recommend leaving feedback in the cog in the top right of qb >feedback for the payroll team about reinstating old employees after leaving changes you would like  to be looked into whether future versions could change the process.

bob104
Level 3

Re-instating Terminated Employees

Since you have removed the re-instate button It would be helpful if it were possible to copy an employee so that if somebody does return we could just copy the details with blank brought forward figures

Ashleigh1
QuickBooks Team

Re-instating Terminated Employees

Hello Bob104, 

 

Thanks for commenting on this thread, 

 

We have taken this feedback on board and will pass it on to our developer's team, we also advise that you leave feedback on this in the main cogwheel section>feedback as well.