Good job on being able to process the employee's last pay. I'll be happy to assist with sharing more info about archiving an employee.
QuickBooks Online allows you to make an employee inactive and doing this without the payroll fully processing will cancel the last pay. I recommend making the employee inactivating after the payroll has been completely processed. Here are the steps you'll need to follow:
Select Employees.
Under Action, select the drop-down beside Edit.
Select Make Inactive.
If you decide to make the employee active again:
Select the Gear icon below Add an employee.
Select Include inactive.
Select Make active.
There you go! Now you know how to make an employee inactive and active again. Let me know if you have other questions. I'll be one message away. :)
Need QuickBooks guidance?
Log in to access expert advice and community support instantly.