If an employee no longer works for your company, you can mark them inactive. By marking them inactive, they will no longer be included in your monthly or annual subscription price and will not be included in future payroll runs. However, you will still be able to create and file end of year W-2 forms for any inactive employees.
Click “PEOPLE” on the admin menu.
If your small business hires both employees and contractors, you can view only your employee list by clicking "EMPLOYEE."
Click the employee you wish to mark as inactive.
Click “EDIT” in the upper, right-hand corner.
Click the box beside “INACTIVE”.