yI have a similar way on how you manage payroll when an employee retires, Mikana.

An inactive employee status will not appear on the payroll screen and is useful for seasonal employee who returns each year. Under normal circumstances, after your employee retires and is issued with their final paycheck, you can change their employment status to Terminated. This status no longer appears on your active payroll list, but their profile and pay records remain in your accounts and still appear on reports.  To do so, follow the steps outlined below:

1. Go to Payroll, then Employees.
2. Select your employee. If the employee isn't on the list, select All employees from the Active Employees dropdown.
3. From Employment details, select Start or Edit.
4. From the Status dropdown, select Terminated or another appropriate status: Paid Leave of Absence, Unpaid Leave of Absence, Deceased. Select Not On Payroll if you layoff or furlough an employee
5. Click Save.

To give you more details about changing your employee's status on payroll, go through this article for reference: Terminate or Change Your Employee's Status on Payroll.

Additionally, you can take a closer look at your business finances and employees, and check out the list of reports that you can use for your payroll data. I've added this for more information: Run Payroll Reports.

Let us know if you have further questions about managing your employees. We're always right here to get you covered. Have a nice day!