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Terminate or change your employee's status on payroll

by Intuit Updated 2 months ago

Learn how to change the status of a terminated employee in QuickBooks Payroll. We'll also show you what to do if you lay off an employee or they take a leave of absence.

Letting an employee go can be challenging. But it's important to take steps to keep your records accurate. After you give an employee their final paycheck, go into your payroll system and change their employment status. Here’s how to change employee statuses from any QuickBooks or Intuit payroll product.

Step 1: Issue the final paycheck

Create and give your employee their final paycheck. Once you do, you can update their employment status.

Step 2: Change an employee status

Terminated employees no longer appear on your active payroll list. However, their profile and pay records remain in your accounts and still appear on reports.

Note: If you don't have paychecks created or pay history added for an employee, you can also delete their profile from your payroll product.

Note: Not sure which payroll service you have? Here's how to find your payroll service.
  1. Go to Payroll, then Employees.
  2. Select your employee. If the employee isn't on the list, select All employees from the Active Employees ▼ dropdown.
  3. From Employment details, select Start or Edit.
  4. From the Status ▼ dropdown, select Terminated or another appropriate status: Paid Leave of AbsenceUnpaid Leave of Absence, Deceased. Select Not On Payroll if you layoff or furlough an employee
  5. Select Save.
  1. Go to the Employees menu and select Employee Center.
  2. Find and open the employee's profile.
  3. Select Employment Info and then select the Termination tab. Note: If you layoff or furlough an employee, select the Leave of Absence tab instead and complete the necessary fields, such as Start Date and Type.
  4. Enter a status in the Termination Type field.
  5. Fill in the necessary info such as Release Date. If you also want to remove the employee from your Active employee list, select the Employee is inactive checkbox.
  6. When you're done, select OK.
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