I have an employee who quit. How do I update his status in Quickbooks Online?

Thanks for bringing your question to the Community, SarahCO. I understand that letting an employee go can be challenging.

Allow me to guide you through the process of updating an employee's status in QuickBooks Online (QBO).

Follow these step-by-step instructions on how to mark the employee as no longer part of your payroll:

1. Go to the Payroll menu and proceed to the Employees tab.
2. Click the name of the employee. 
3. Scroll down to the Employment details section and click Edit.
4. Click the drop-down list for Status ▼ and select Terminated or  Not On Payroll if you lay off or furlough an employee.
5. Select Save.

Here's an article about this process for more details: Terminate Or Change Your Employee's Status On Payroll.

You can also check out these additional resources and guidance about managing employees in QuickBooks Online (QBO):

• Create Final Paychecks For Terminated Employees
• Set Up Employees And Payroll Taxes In A New State

These resources are designed to assist you in efficiently managing your employee records and keeping your payroll account organized.

Please don't hesitate to reach out to us again if you have any further questions about employee status updates, payroll, or any other aspect of QBO. I'm always here to help and support you whenever you need it, SarahCO.

Thanks. I found those options, but they don't make much sense to me. He wasn't terminated; he quit. And not on payroll makes it sound like a temporary thing or that he's still associated with the company somehow. So, I guess terminated would be best, even though he wasn't terminated?

Hi Sarah,

Allow me to join the thread and provide information about changing the employment status of your employee in QuickBooks Online (QBO).

When changing the employment status, you can choose from a variety of options, such as Active, Paid Leave of Absence, Unpaid Leave of Absence, Terminated, Not on Payroll, and Deceased.

In general, the Terminated status is used for employees who are not expected to be rehired, while Not on payroll is used for employees who are laid off or furloughed.

Based on your situation, you may want to use the Terminated status if you do not plan to rehire that particular employee.

Just in case you want to invite your employees to QuickBooks Workforce, you can check out this article for the detailed steps and information: Invite your employees to QuickBooks Workforce to see pay stubs, W-2s, and more. QuickBooks Workforce is a website where your employees can access their paystubs online.

I'm always here to help you manage your employees, so please don't hesitate to contact me if you require any further assistance. I wish you and your company continued success.

@SarahCO SaraCO,
I think your thoughts are 100% justified, the options are jarring and are very-much legally-formulated. So far everything I've read on this thread I would agree with (if I like it or not) after hearing out my own advisors. 
Everything you see below for status options is mostly formal and for a reporting and  an HR perspective to CYA. 

• Active - (actively paid employee)
• Paid leave of absence - (Employee is on leave, still being paid)
• Unpaid leave of absence - (Employee is on leave, no pay)
• Terminated - (Employment has ended)
• Not on payroll - (Employees   "on leave or temporary and likely to come back")
• Deceased - (Employment has ended - Deceased)
  
  
  Background; I found this thread because I searched "employee quit - how do I update status in QBO"
  @SarahCO you're not alone. 
  
  
  
  

It is also awkward that a pop up appears describing everything you can do when you "fire" an employee. Adding to the confusion. As far as the legalize to me there is a stark difference between involuntary and voluntary termination and I would like that distinction to show in my records. Especially when an employee comes back 3 months later with an unemployment claim. It would be really great if this was incorporated into work force and the employee was given a notice that their employer has indicated that they have voluntarily terminated employment with a check box the mark in agreement.

any how. Glad to see I am not the only one.

Thank you for joining this thread, jf73.

Your feedback is extremely valuable in helping us enhance QuickBooks Online to meet your specific needs. We are committed to continuously improving our software to provide you and our other clients with an exceptional user experience.

We encourage you to share your insights and suggestions with our product engineers by following these simple steps:

1. Click the Gear Icon.
2. Under Profile, click on Feedback.
3. Enter your Suggestions.
4. Then click Submit.

Stay informed about the latest product updates by visiting Intuit's Product Updates webpage.

In addition, you can access your business and employees' information through Payroll Reports to ensure accuracy and proper record-keeping in QuickBooks Online.

Your input is crucial as we strive to tailor our product to better meet your business needs. Please don't hesitate to share any other concerns you may have about QuickBooks. We are available 24/7 to provide you with support and assistance.

I agree with you!  There should be another option besides Terminated or Not on Payroll.  Neither of these fit the description of why this employee is no longer working with us. He chose to not come back to work... he quit.  "Quit or Resigned" should be one of the "defaults". 

Terminated allows the employee to apply for unemployment.  We had employment for the employee, they chose to quit work.  

Not sure if this is too late; however, if you select Terminated then you will have the option to select the reason, one of which is `Quit`

If you select Terminated then you will have the option to select the reason, one of which is 'Quit'