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Terminating an employee in QuickBooks Online Advanced Payroll

There are two ways you can terminate an employee:


  • Within the employee details
  • Within a pay run


Terminating an Employee within the Employee Details


The first, and simplest way:

  1. Open up the employee details.
  2. Select the Details section then Terminate Employee.
  3. Enter their Termination Date. This marks the employee as inactive, and they will no longer be eligible for pay runs.

Please note that terminating an employee will not process a termination payment.


Terminating an employee via the pay run

  1. Select the employee within the pay run.
  2. Under Actions, select Terminate Employee.
  3. Enter the Termination Date and then Save.


The employee record will then turn red, and will display earnings and accrued leave. When you Save, any relevant termination payments will be calculated for the employee. The breakdown of payments (and associated hours) will be detailed and include:


  • Annual Leave payout - the box must be selected for this to occur.
  • Option for Sick Leave to be paid out - the box must be selected for this to occur.
  • Once you have finalised the pay run, this employee will no longer be active or eligible to be included in pay runs and the employee line will be highlighted red.


Note: If there are any unfinalised pay runs for the employee, you will not be able to terminate them until those pay runs have been finalised.


If you want to cancel the termination, you simply have to unlock the finalised pay run, click on the employee and select Actions then Cancel Termination.

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