Are Former Employees Costing You Money in QuickBooks?

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Are Former Employees Costing You Money in QuickBooks?

by | Oct 23, 2026 | Blog

In our last article, we covered the recent QuickBooks Online price increases and what they could mean for your subscription costs. However, your monthly bill may be affected by more than just pricing changes. One often-overlooked factor is the number of employees marked as active in QuickBooks Workforce. Here’s why that matters and what you should check.

Someone left your business. Did they leave your active payroll list?

This one is easy to miss, simply stopping someone’s paychecks does not stop their monthly employee fee. Intuit counts employees marked active during the billing period, even if they did not receive a paycheck.

So, if a former employee is still marked active, you may still be paying for them. On Premium, three former employees left active would add $39 to your monthly bill. That’s a good reason to give your employee list a quick check.

When someone leaves, complete the termination process and confirm their payroll status is inactive. Keep their payroll history; use the status and offboarding tools rather than deleting their records.

Give your employee list a quick cleanup

Menu names can vary, but Intuit’s current Workforce instructions start here:

  1. Open All apps > Team > Employees and select the former employee.
  2. Choose Terminate employee from the Actions menu.
  3. Enter the requested details, including their last day worked, employment status, and rehire eligibility.
  4. Finish the offboarding and final-paycheck steps, then confirm they are no longer marked active.

If there are final wages or other payments still to handle, check with your payroll professional. Employee statuses should match their actual employment situation—not be switched back and forth to avoid fees.

A few minutes now can prevent surprises later

If Intuit bills you directly, check Settings > Subscriptions and billing for your subscription details and payment history. If we invoice you directly, review the QuickBooks charges on our invoice.

Review your active employee list as well—especially after someone leaves. If you were charged for someone who was already inactive, contact Intuit support.

If you have questions about your QuickBooks Online accounts, subscription or pricing, please contact our office.


Read About the Recent QuickBooks Online Fee Changes

Your QuickBooks Online Fees May Be Going Up—Here’s What to Check

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