How do I exclude employees with terminated employment from the payroll calculations?

You need to specify a final close date for each of those employees to exclude them.

Here's how you can include only active employees in the payroll calculations when you run the Calculate Payroll process:

1. Go to My Client Groups > Payroll > Payroll Relationships.
2. Search for the relevant employee with terminated employment and inactive assignment status and click their name.
3. Edit the Payroll Assignment Details section to update the Final Close Date value.
   Note: Set the final close date to a date that's after all payroll processing is completed for the employee, including all payroll payments and balance adjustments.
4. Save your changes.