Employee with STAT2 (1 = Employee with company but inactive), STAT3 (0=No entitlement)

Hello All,

There is a requirement where client wants to keep some employees "inactive" in the system and want the system to not consider them when payroll is run.

I created a personnel action with STAT2 = 1 (Employee with company but inactive) and STAT3 = 0 (No entitlement) with the idea that system will not process these employees during payroll run. But it didnt happen and when the payroll ran all the employees who had STAT2 = 1 and STAT3 = 0 were processed in payroll.

Can anyone please tell me if I have missed any configuration? If payroll is being processed with STAT2 = 1 and STAT3 = 0 then what is the point of these statuses?

Thank you!