I can't seem to find an action menu in the employee menu in order to set an employee as inactive - Is there somewhere else I should be looking to do this?

Hi there, 

As your business changes, so does your staff. It's important that you're able to easily change the status of your employees in QuickBooks Online. I'd be happy to explain the steps below. 

To make an employee inactive:

1. Select Employees.
2. Under Action, select the drop-down beside Edit.
3. Select Make Inactive.

If you decide to make the employee active again:

1. Select the Gear icon below Add an employee.
2. Select Include inactive.
3. Select Make active.

Simple as that. I hope this helps get you back on track. 

Have a great day.