There are a few reason why you might want to make an employee inactive in QuickBooks Online:

  • Paid Leave of Absence
  • Unpaid Leave of Absence
  • Not On Payroll
  • Terminated
  • Deceased

To make an employee inactive:

  1. Select Employees.
  2. Locate and click the name of the employee you wish to make inactive.
  3. Click the edit pencil next to Employment.
  4. Click the Status drop-down and select the applicable status.
  5. If required, fill in the Reason for status change, Hire date and Termination date fields.
  6. Click Done.