Hi @jennypro,

I'll walk you through how you can make an employee inactive in QuickBooks Online (QBO).

Here's how:

1. Highlight the Payroll tab.
2. Select Employees.
3. Look for the employee you want, then click to open.
4. Search for the Employment section, then click the Edit (pencil) icon.
5. Change the Status drop-down menu as necessary.
6. When finished, press Done.

For a terminated employee, take a look at this article: Create final paychecks for terminated employees. It's a step by step guide on how you can process the final paycheck for a terminated employee. 

If you have any other concerns, tap Reply, and place them in the comments below.