Hi usercroft,

Thanks for posting in the Community!

Terminate the employee via the pay run to display all calculated earnings and any accrued leave to be paid out as part of the termination pay. The employee's record will turn pink as an indicator it is a termination pay.

Here's how to terminate an employee via the pay run:

1. Select the Payroll tab.
2. Select New pay run.
3. Choose a pay schedule, period ending date and pay date.
4. All employee under the pay schedule selected will show from the list.
5. Select the employee name to be terminated.
6. Click on Actions button.
7. Click on Terminate employee.
8. Enter a Termination date and reason.
9. Click on Save.

Check the employee earnings and leave categories paid out to the employee. Finalise the pay run when ready and the employee will no longer show in your active employee list.

For additional information, please check t his article: Terminate an Employee in QuickBooks Online Payroll. 

If you need more help with other QBO tasks, please let me know by adding a comment below. Have a good day!