When I have an employee resign voluntarily, do I change their status to Not on Payroll or Terminated? If I choose Termination, it all sounds like they were fired.

When an employee voluntarily resigns, their status is updated to Terminated, even though it may sound like they were fired, tparrish.

The Terminated status is used for employees who leave the company and are not expected to return, regardless of whether they resigned, retired, or were dismissed, while Not on Payroll applies to employees temporarily removed from payroll, such as during furloughs or layoffs, with the potential to return in the future.

To streamline your payroll processing, consider exploring QuickBooks Payroll. Its advanced time-tracking tools and quicker direct deposit options can significantly improve efficiency and simplify how your business runs.

If you have any additional questions, feel free to reach out. We’ll be happy to answer them for you!