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The phrase "are quits" is correct and usable in written English.
It is typically used to indicate that two parties have settled their debts or disputes and are even with each other.
Example: "After we settled the bill for dinner, we both agreed that we are quits."
Alternatives: "are even" or "are settled."
Dictionary
are quits
verb
To pay (a debt, fine etc.).
Exact(1)
Sleek Audio and G-Unit productions (Fitty's licensing company) are quits.
Similar(59)
Some are quitting.
Senior executives are quitting in droves.
Both of us are quitting our jobs.
Or worse, current employees are quitting.
Meanwhile, a few are quitting.
People don't listen and are quitting.
Determine why you are quitting soda.
If you are quitting, ask them to respect your decision.
"Then we're quits," she said.
"It's quits, and quits it shall be".
More suggestions(6)
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Since I tried Ludwig back in 2017, I have been constantly using it in both editing and translation. Ever since, I suggest it to my translators at ProSciEditing.

Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com