Thanks for posting in the Community, bookkeeper1-mybi.
There are two ways on how you can terminate an employee in QuickBooks. If termination pay is not required you can do it within the Employee details. Here's how:
Go to Employees tab.
Select the employee you wish to terminate.
Scroll to the bottom and select Terminate Employee.
Enter the Terminate date and Termination reason then, select Terminate.
Please note that once you mark an employee as terminated you'll no longer be able to process pay runs for them.
On the other hand, if a termination pay is required on an employee, you can do it within a pay run. Here's how:
Go to Employees tab.
Select New Pay Run.
Enter in the relevant fields, then select Create.
Select the employee you wish to terminate.
Select the Actions button then select Terminate Employee.
Enter the employee's Termination date and Termination reason and then select Save.
For more detailed information, you can check on these articles: