Do I need to change an employees status in quickbooks payroll if they are on Furlough

Hello accounts263,

Thanks for joining the community! 

You do not need to change the employee's status, you can simply create a new pay category to track furloughed pay and assign this to the employee when running the payroll.

To guide you with steps to do this, can I confirm which version of the payroll you are using - Standard, Advanced, or PaySuite?