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Level 2

Deactivate Employee in Payroll

Quickbooks Online is not allowing me to deactivate an employee. I deleted the employee and then re-added all their information as a new employee and still did not have the option to make inactive. I only have the option to delete the employee.

I have an active payroll membership. 

I do not have the "Employment" tab all the support articles refer to. 

3 Comments 3

Deactivate Employee in Payroll

Hi, @JimmyP11.


I can see that you're using QuickBooks Essentials in your previous posts. Let me help you show the option to make an employee inactive.


When you select a worker in the Employees tab to see their information, you should be able to see the Employment section, where you can edit an employee's status. In addition, you'll see the Delete employee option when you're in the Employment window where the Status field is present.


Let me show you how:

  1. From the Payroll menu, go to the Employees tab.
  2. Select the worker in question.

  3. Click the Pencil icon beside the Employment section.

  4. From the Status drop-down, select the reason to inactivate an employee like TerminatedUnpaid Leave of Absence, or Not On Payroll.
  5. When finished, press Done.


On the other hand, you may need to set up your employee initially since you don't have the option to deactivate an employee. In that case, you'll have to enter the worker's data in QuickBooks. Here's how:


  1. In QBO, go to the Payroll menu.
  2. Select the Employees tab, then click Add an employee.
  3. Enter worker's details in the Personal Info section:
    *First and last name
    *Hire date
    *Email address
    *Enter their Address, Social Security Number, and W-4.
  4. Enter the info in each section, then select Done.


After following these steps, you'd be able to see the Employment section and deactivate a worker by following the steps (with screenshots) above.


In case you need to delete or void paychecks first before you can inactivate the employee, you can check this article: Delete or void paychecks


Feel free to post again or leave a comment below if you have any other concerns with updating employees' status. I'll be here if you need further assistance. Take care and have a great day!

Level 2

Deactivate Employee in Payroll

I do not have the "employment" tab you are referring to. Therefore, I do not have the option to change the employees status. I just switched everything from Quickbooks Desktop Pro to Quickbooks Online and it isn't giving me the options you are referring to. I deleted the employee altogether, and then re-added them from scratch in QBO and still do not have that option.


Tori B
QuickBooks Team

Deactivate Employee in Payroll

Hello, @JimmyP11.


Thanks for taking the time to follow up with us. 


Since you're not seeing the options that my colleague has provided above, I recommend contacting our Technical Support Team. This way, one of our technicians can review your account in a secure environment and investigate this matter further. 


You can use the link I've included below to connect with an agent. 



Please let me know if you have any questions or concerns. Take care and have a great day ahead!

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