In QuickBooks Time, we have the option to archive an employee, deann3. However, if you are using QuickBooks Online Payroll you can make them inactive and then add a new one. I'll provide more details below.
In QB Time, once an employee is archived, they lose access to time-tracking features. In QBO Payroll, ensure new employee names don't exactly match those of previously inactivated employee, as duplicates aren't allowed. You can use similar names by slightly modifying them, such as adding a letter.
Here' how to archive one team member in QB Time:
- Go to the My Team menu.
- Look for the name of the old employee, then click the three-dot icon in the right-hand corner.
- Select Archive and click Confirm to remove the user.

Here's how to change an employee’s status in QBO Payroll:
- Go to Payroll, then Employees.
- Select All employees or Inactive Employees from the Active Employees ▼ dropdown.
- Click your employee, then tap Start or Edit from Employment details.
- From the Status ▼ dropdown, select Active to reinstate them.
- Hit Save to confirm.

Further information on this topic is available in these following articles:
We can also check out these articles for additional guidance and references:
Moreover, you can Explore QuickBooks Payroll to help you streamline your payroll process, ensuring accuracy and efficiency. From setting up employee information to preparing tax forms, our experts cover everything you need to know to optimize your payroll management.
Accurate time records in QuickBooks Time and Payroll are essential for ensuring payroll accuracy. If you have further questions about this. Please reach out for assistance. Have a great one.