Here is the path mentioned to delete employee master records.
In Paybooks 2.0: Go to Employees menu >> More tab >> under Others >> click on Delete Employee link
In Paybooks 1.0: Go to Employees menu >> Employee Configure >> click on Employee Flush
Fetch the details using filters or using employee code.
Mark the check box and click on delete.
Note: Employee Record cannot be deleted if Salary is already processed and if any Leave & Reimbursement workflow actions been made for that employee.