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 from the left menu.
  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.