Terminated Employees

j2s · ‎December 12, 2022

I have a question about a terminated employee. This is our first year to work with Quickbooks payroll service. Somewhere I was told to keep terminated employees active until the end of the year so they will receive w-2 and for end of year reports.

Is this correct ? Or can I make the terminated employee "inactive" ?

Angelyn_T · ‎December 12, 2022

Congratulations on your first year with our payroll service, @j2s. I'm here to share with you some details about handling terminated employees in QuickBooks.

Once you give your employees their final paychecks, you can immediately change their employment status without waiting for year-end. Here's how:

Sign in to your QuickBooks Online (QBO) account.
Click on Payroll, then Employees.
Select your employee. If the employee isn't on the list, select All employees from the Active Employees dropdown.
From Employment details, select Start or Edit.
Update the status from the Status dropdown menu.
Select Save.

You may also open this article for more reference about the steps: Terminate or change your employee's status on the payroll.

On the other hand, you can generate W2s for all of your employees regardless of their current status as long as they have paychecks recorded during the year. Learn more about W2s from these links:

Thanks for giving me the opportunity to help out today. If you have follow-up questions, let me know by adding a comment below. I'm always here to help. Keep safe!

View solution in original post

Angelyn_T · ‎December 12, 2022

Congratulations on your first year with our payroll service, @j2s. I'm here to share with you some details about handling terminated employees in QuickBooks.

Once you give your employees their final paychecks, you can immediately change their employment status without waiting for year-end. Here's how:

Sign in to your QuickBooks Online (QBO) account.
Click on Payroll, then Employees.
Select your employee. If the employee isn't on the list, select All employees from the Active Employees dropdown.
From Employment details, select Start or Edit.
Update the status from the Status dropdown menu.
Select Save.

You may also open this article for more reference about the steps: Terminate or change your employee's status on the payroll.

On the other hand, you can generate W2s for all of your employees regardless of their current status as long as they have paychecks recorded during the year. Learn more about W2s from these links:

Thanks for giving me the opportunity to help out today. If you have follow-up questions, let me know by adding a comment below. I'm always here to help. Keep safe!

kvelectric · ‎January 04, 2023

Will QB automatically send W-2s to Employees- Including "inactive" employees?

Bryan_M · ‎January 04, 2023

Thank you for joining the thread, @kvelectric.

Allow me to help you clear things out. As long as your employees have received paychecks within the year, you can automatically generate and deliver their W-2 regardless of their status.

For additional reference, you read through the following articles:

Don't hesitate to reach out again if you have more questions about form W-2 or any Tax statement-related concerns. We'll be here offering 24/7 support. Take care and have a blessed year!

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