Unless your business operates under the legal structure of a sole proprietor or one-man LLC or corporation, you’ll probably find yourself in a position where you need to remove an employee from Quickbooks. Allowing employees whom no longer work for your business to remain on the payroll could result in paychecks routinely sent to them. This issue is easily fixed, however, by adjusting some of the settings in your Quickbooks account.
The preferred solution to the scenario mentioned above is to set the employee to inactive. This keeps all previous records of the employee and any paychecks sent to him or her, but it also removes from the employee from the Active Employees list; thereby, eliminating the possibility of accidental paychecks being sent to him or her.
To make an employee inactive, launch your Quickbooks program and access the Employee Center by clicking the respective icon. Next, click on the employees tab to view all of your active and inactive employees. Scroll through the list until you find the employee whom you wish to make inactive, double-click on his or her name, and click the checkbox next to the option “Employee is inactive.” Congratulations, you’ve just set the employee to inactive! Sorry if you were expecting more, but that’s all it takes to deactivate an employee in Quickbooks.
So, what should you do if the employee wishes to return to your company/business as a paid worker? One option is to create an entirely new employee handle for him or her under your Quickbooks account. Being that all of the necessary information is already available in your account, however, the smarter approach is to simply reactivate the employee’s account.
To reactivate an employee, access the Employee Center once again, followed by clicking on the employee tab. Next, click the drop-down arrow at the top of the list and select All Employees. Any inactive employees in your Quickbooks account will have a large X next to their names. If you wish to make an inactivate employee activate again, double-click his or her name, and lastly, click on the box next to the option “Employee is inactive” (note: there should not be a check mark located in this box).
Quickbooks makes it a breeze to set employees to inactivate and to reactivate them. While most users take the longer, more tedious route of completely deleting employees, using the method described here is much easier.