Lesson 4.8: Terminating & Inactivating Employees

Properly managing the end of the employee lifecycle is just as important as setting up a new hire. Whether an employee is retiring, resigning, or taking a temporary seasonal leave, FastFund Payroll requires you to update their system status so they are no longer included in active payroll batches.

The Golden Rule of Final Paychecks FastFund will only generate payroll checks for employees with an “Active” status. Therefore, if you need to pay a departing employee partial wages for their final days, you must process and post their final paycheck first before you update their record with a termination date. Once an employee is marked as Terminated or Deceased, you will no longer be able to generate a paycheck for them.

Terminating an Employee When an employee permanently leaves your organization, you must record their departure date in the system:

1. Navigate to Lists > Employees (under the Entities section).
2. Locate the employee. If you have a large staff, you can click Filters + in the upper left corner to search by First Name, Last Name, or Department.
3. Click the Employee Name to open their record.
4. On the Details tab, locate the Termination Date field.
5. Enter the employee’s last day of employment.
6. Click SAVE.

When you save the record, FastFund automatically changes the employee’s status from Active to Inactive. Terminated employees will immediately drop off your active Employee List and will no longer appear when you create new payroll batches.

Inactivating an Employee (Temporary Leave) If an employee is a seasonal worker (e.g., summer camp staff) or is on a temporary leave of absence, you should not enter a Termination Date. Instead, you can temporarily suspend their profile by marking them as Inactive:

1. Open the employee’s record and go to the Details tab.
2. In the upper right corner of the screen, locate the Flags section.
3. Check the Inactive box.
4. Click SAVE.

Like terminated staff, inactive employees will be hidden from the main Employee List and excluded from payroll processing. When the employee returns for the new season, simply open their record, uncheck the Inactive box, and save to instantly reactivate their profile.

Finding Inactive and Terminated Employees Because FastFund automatically hides non-active personnel to keep your workspace clean, you will need to use the system’s filter tool to locate historical records for year-end reporting or rehiring:

1. On the main Employee List, click Filters +.
2. Check the Inactive box in the filter criteria.
3. Click the Filter button. The list will now display all terminated and temporarily inactive employees in your database.