Welcome to Community! QuickBooks Payroll is a dynamic feature for paying your staff seamlessly. When the status of an employee needs to be changed, you'll have the option to make them inactive so the information can be recovered if needed. I'm not sure if you're using QuickBooks Online or QuickBooks Desktop so I'd be happy to guide you through the steps for both products!
In QuickBooks Online, follow these steps to make an employee inactive:
1. From the left menu, select Payroll and then Employees
2. Click on the employee name and open the Edit ✎ on the Employment tab
4. Change the status and enter the required fields
5. When finished, hit Done
Note: If you don't see the Employment tab, you'll need to run payroll first.
Here's how to make an employee inactive in QuickBooks Desktop:
1. Select Employees from the menu bar and then Payroll Centre
2. Under My Payroll Service section, open the Employees tab
3. Select the employee and then Edit ✎
4. Open Employment Info and enter the Release Date
5. Complete the necessary fields and hit OK when complete
If you have any other questions, please don't hesitate to reach back out. We'd be glad to help!