When an employee leaves the company, you need to tell QuickBooks the
employee's release date so that QuickBooks knows not to display their name when you go to pay employees using the payroll schedule the employee is assigned to.
Note: When you write a termination paycheck for the employee, QuickBooks will automatically update the release date information in the employee's record.
To do this task
Click Employee Center.
Click the Employees tab and then double-click the employee you want to release.
Click the Change tabs drop-down arrow and click to select Employment Info.
Enter a date in the Release Date field.
QuickBooks displays the Deceased checkbox.
(Optional) If the employee is deceased, click this checkbox so that this status is shown on the employee's W-2
form at the end of the year.
Click OK to record your changes.
Optionally, you can make the employee inactive. What are the differences between active and inactive employees?
Can I delete a released employee?
You can't delete a released employee if there are transactions associated
with that employee. You can, however,
hide the employee's name in
the Employees list.
Writing a termination check
Making an employee inactive