Thanks for joining the Community, rebecca39.
 

If you're encountering a "This employee cannot be deleted because it is used in unbilled charges." error message upon trying to make an employee inactive, you can run your Unbilled Charges report to identify each transaction they're linked with, then unlink them.
 

Here's how:

1. In the left navigation bar, go to Reports.
2. Enter "Unbilled charges" in your Find report by name search field.
3. Choose Unbilled charges from the drop-down list.
4. Click each transaction to open their records. This way you can check if an employee's connected with any unbilled charges. In the event they are, untick your Billable (/hr) checkbox for each one.
5. Select Save and close.
   

After addressing each unbilled charge, you can return to your Employees page and delete them by using the ACTION ▼ drop-down arrow, then selecting Make inactive.

If you need to reactivate a deleted worker, use your Gear (⚙️) icon, turn on Include inactive, then hit Make active for their record.

You'll additionally be able to find many detailed resources about using QuickBooks in our help article archives.
 

Please don't hesitate in sending a reply if there's any questions. Have a lovely day!