QB Issue Resolution:

You can’t. Intuit Online Payroll cleverly insists that you setup complete records for all employees, even those you have terminated many years ago and for which you don’t have the requested information.

Resolution for Issue 'I am setting up QB payroll and the converted desktop info lists employees terminated in prior years. How can I get past their ee setup requirements?' available: Yes (Solved).
Source: Intuit Community forum.

I am setting up QB payroll and the converted desktop info lists employees terminated in prior years. How can I get past their ee setup requirements?: this issue or error code is a known issue in Quickbooks Online (QBO) and/or Quickbooks. Support for this issue is available either by self-service or paid support options. Experts are available to resolve your Quickbooks issue to ensure minimal downtime and continue running your business. First try to resolve the issue yourself by looking for a resolution described below. If it is a complex issue or you are unable to solve the issue, you may contact us by clicking here or by using other support options.

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