Inactivating an employee won't delete their employment record in QuickBooks Online (QBO), @usernichole-corral. Let me provide further details about this.
The QBO system will retain your employees' records regardless of their status. This way, you can keep your payroll account and taxes recorded accordingly. Let's go to the Employees page to complete this process. Here's how:
- Go to the Payroll menu.
- Select the Employees tab.
- Find the employee you want to inactivate, then click the Status drop-down arrow.
- Choose the appropriate employee status (i.e., Not on payroll).
I've attached a screenshot below for your reference.
You can learn more about the process through this article: Change employee status.
Additionally, there are a variety of payroll reports that you can choose from to get a closer look at your business and employees. For the complete list and their description, you can check out this article: Run payroll reports. It also includes steps on how to customize, print, and making them your favorites.
Stay in touch if you have other payroll concerns and inquiries about managing your employees in QuickBooks by leaving a comment below. I'm always glad to help in any way I can. Have a great rest of the day.