When an employee is terminated or leaves your company for any reason:
Hide the employee from the list of people you pay and stop their payday reminders
- Click the "Employees" tab
- Select the employee in the "Employees and Contractors Overview"
- In the Employment details section, select "Edit" at the top of the employee's page.
- Select Terminated from the Status drop-down. A Termination date box appears.
- Optionally, enter the Termination date — the employee's last work day.
- Click OK.
- Go to the Employees tab
- Click the drop-down arrow above your employee list to change your view to "Show:All Employees:".
Check the Status column to see the employee's current status (Active, Terminated, Unpaid leave of absence, etc.). The payroll data for inactive employees stays in our system so that year-end taxes and reports are correct.
See if your state requires additional forms when an employee leaves your company
- Go to Taxes & Forms > Forms and then Employee Setup.
- Review the list of forms to see if you are required to file any for a terminated employee.
If you will no longer have any employees, look for a box on the next quarterly tax filings to indicate that you will not need to file in the future. (For example, the federal 941 has a box near the top with a space to enter the date of final wages paid.)
In some states, you need to continue filing "zero" returns for some period of time. Some states have a separate termination form. Check our Payroll resources for your state — we've added all the state termination forms we could find. See also Cancel My Service.