You can change the employee's status or delete their profile to take them down from your active W-2 payroll, Syb.
If the employee has no payroll transactions or paychecks, you can delete their profile. Here's how:
- Go to Payroll and choose Employees.
- Select the employee you want to delete.

- Click Actions and select Delete employee.

- Confirm by clicking Yes.
If the employee has payroll transactions, you’ll need to update their status to remove them from your active payroll list while keeping their records intact. Here's how:
- Navigate Payroll and choose Employees.
- Select the employee name.
- Click the Actions dropdown and select Change status.

- From the Status dropdown, choose the appropriate status.
- Once done, click Save.

Please note that if an employee has payroll transactions during the year, QuickBooks still automatically generates their W-2 at year-end. Changing their status or deleting their profile will not prevent this, as all wages must be reported to the IRS in compliance with tax regulations.
If you have additional questions, don't hesitate to reply below.