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JEShore66
November 2, 2022
Question

Putting CA AB5 employees on "Pause"

  • November 2, 2022
  • 1 reply
  • 0 views

I am in California so I need to comply with AB5 which relates to independent contractors vs. employees.   Even though I have some people that work for me just a week or two a year I need to onboard them as employees.   I have done the onboarding, run one payroll for them and now I need to put them in a status on payroll to "pause" them until they work for me again probably in several months.  The status provided by QB doesn't really fit.  They are not on a leave of absence and I don't want to delete them as employees.   Can *I make a new category, maybe a "AB5" status?

1 reply

JaeAnnC
JaeAnnC
November 2, 2022

Welcome to the Community, @JEShore66!

 

I'd be glad to assist you in managing your employee's status in QuickBooks Online (QBO) Payroll. 

 

For now, QBO doesn't have the ability to add a new category to an employee's status. However, I can show you how to temporarily stop running payroll for them until they return. 

 

In your case, you have to change it to Not on payroll. It's the most suitable option for an employee who is temporarily on leave and is likely to return.

 

To do that:

 

  1. Go to Payroll and select Employees.
  2. Select the specific employees that you want to change the status of.
  3. On the Actions dropdown, click Change status.
  4. Change the Status to Not on payroll.
  5. Select Save.

 

Once an employee returns, you can follow the same steps but select Active under the Status dropdown.

 

I'd also suggest consulting your accountant to further help you identify the appropriate status for your situation.

 

Here's an article if you might want to run payroll automatically in QBO:  Set up Auto Payroll to pay your employees in QuickBooks Online Payroll.

 

Feel free to reach out to us if you need further assistance with changing your employee's status. I'm available to help anytime. Take care!

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