Adding New Employee

Greetings, laurietez.

Welcome to the QuickBooks Community. I want to make sure you’re able to add a new employee without an active payroll service in QuickBooks Online.

I've replicated the steps using my QBO account and didn't encounter the same issue that you have. I’m able to add a new employee without an active Payroll subscription.

Let's perform some basic troubleshooting to fix the issue.  First, use a private or incognito window when logging into QuickBooks.
Here’s how:

• Press Ctrl + Shift + N keys on your keyboard (Google Chrome)
• Press Ctrl + Shift + P keys on your keyboard (Firefox or Internet Explorer)
• Press Control + Option + P keys on your keyboard (Safari)

Once you’re logged in using a private window, go to Workers and add the new employee. If it works, I’d suggest clearing your browser’s cache to improve functionality.

Sometimes, switching to a different browser (Internet Explorer, Chrome, and Firefox) can help issues like this.

If the same problem persists, I’d recommend giving our Customer Care Team a call for further assistance. Here’s how you can reach them: https://community.intuit.com/articles/1145770.

In the meantime, you can add an employee through the Single Time Activity option. To do that, follow the steps below:

1. Click the Plus icon and select Single Time Activity under Employees.
2. On the Whose time are you tracking box?, enter the employee’s name and click Add.
3. On the Type box, select Employee.
4. Click Save.

Once done, exit from the screen by clicking the X icon on the upper right-hand corner. Go back to the Workers tab and check under Employees to ensure that it's added successfully.

You can add the employee's information by clicking the Edit link and follow the prompt to save the changes.

That should do it. Stay in touch with me if there’s anything else I can do for you. Have a good one!

Another option for reimbursing an employee for reimbursable business expenses is to set them up as a Vendor (in addition to having them entered as an employee).  This way QuickBooks will not take out payroll taxes from the reimbursement.  Their name can not be exactly the same.   If you are not using expense reports with back-up, you may need to list them as a 1099 Vendor.  Check with your accountant and/or attorney to confirm.

That option is no longer available 2020 QBO!!! 
All our older entries that carried over from the QBDT version still show as employees - but cannot add new ones. 
We use ADP... this stinks!! 
They want to force us to use their payroll system! NOT!