Best Business Practice - Moving termed employees from Inactive-Payroll to Inactive-No Payroll

Summary:

When we term employees, we set the assignment status to Inactive-Payroll. Payroll has requested us change the status to Inactive-No Payroll after the last check. They are stating that leaving termed employees in the Inactive-Payroll is causing the payroll process to run longer. I'm wondering how other companies are handling this situation.

We don't like the idea of having to update the status because it is one more thing that HR has to manage. We have thought about creating some automatic process to update the assignment status so many days after the term date. Updating the assignment status after the face will cause the last update information on the term to be irrelevant. I know the audit process can be run to get the more information, but that can not be run by person number. It will just cause more headaches when trying to determine what occurred on an employee.