Terminating an employee | QuickBooks Online Guide

How it works

Employment Hero is the source of truth for your company settings, payroll settings, and employee file data. For you to terminate an employee correctly, you will need to follow a specific process. This process will make sure your employees receive their correct termination pay, and their off-boarding from Employment Hero is smooth and trouble free.


Payroll Plan:   Standard   Premium

What you need to do

There are three steps that an administrator needs to complete, when terminating an employee and processing their last payment. An administrator needs to complete these actions on both the Employment Hero and QuickBooks Online platforms. The three steps are: 

Step 1: Processing a termination pay

First, run a pay run as usual and within that pay run you can mark the relevant employees that need to receive a termination payment due to them leaving your organisation.

The steps on how to undertake this are:

  1. Log into your QuickBooks Online platform.
  2. Click the Employee menu.
  3. Click the New Pay Run button.
  4. Complete the following fields:
    • Pay Schedule
    • Pay period ending.
    • Date pay run will be paid.
    • Manually add employees to this pay run.
    • Create pay run with empty pay.
    • Import timesheets:
      • Timesheets for this pay period.
      • All unpaid timesheets.
      • Don't import timesheets.
  5. Click the Create button.
  6. Click on the employee's name who needs a termination payment added.
  7. Click the Actions button.
  8. Click the Terminate Employee button.


    An employee included in an un-finalised pay run means you can not use the termination payment feature. You will need to finalise any existing pay runs first and then process their termination payment.

  9. Select the termination date and click the Save button.


    Repeat the steps 6 to 9 for each employee that needs a termination payment added.

  10. Click the Finalise Pay Run button.
  11. Complete the following fields:
    • Date paid.
    • Publish pay slips:
      • Do not make payslips available until "Publish pay slips" button is clicked.
      • Make pay slips available to employees now.
      • Publish pay slips at x time on x date.
  12. Click the Finalise button.
Step 2: Importating the pay run

The next step is to import the pay run into Employment Hero; this import process happens automatically at set times, when the two platforms meet the right conditions. If you are processing the employee termination in one go though, it is best to import the pay run completed in step 1 manually. The steps on how to undertake this are:

  1. Log into your Employment Hero platform.
  2. Click the Settings menu.
  3. Click the Add-ons submenu. 
  4. Click the Actions button. 
  5. Click the Update button. 
  6. In the payslips section, click the Update from Payroll button. 
  7. Select the required payslip from the drop-down menu.
  8. Click the Import button.

    Helpful Hint

    The Payslips section will now show a green Updated button. This means Employment Hero has successfully imported your selected QuickBooks Online payslips.

Step 3: Off-boarding and terminating an employee


Before off-boarding an employee, make sure that you have created an off-boarding checklist. This generates a list of tasks that need completing before their termination date. To read further details on how to create an off-boarding checklist, refer to the following article.

The last step is to off-board the employee within Employment Hero. When off-boarding an employee, you can select the date of their termination, the reason for them leaving, and add in any needed comments. The steps on how to undertake this are:

  1. Log into your Employment Hero platform.
  2. Click the People menu.
  3. Click the Employees List submenu.
  4. Click the Action button next to the employee that needs off-boarding.
  5. Click the Off-Board Employee button.
  6. Complete the following fields:
    • Termination date.
    • Termination type.
    • Reason.
    • Comment.
  7. Click the Terminate button.
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