Legally if you are on payroll but not doing work the visa issue remains. Now will the government actually enforce that who knows.
I’m not a lawyer. This is not legal advice.
If you are still on the payroll, the company is committed to paying you, which means they don't get to recognize (accounting-wise) the cost savings of letting you go. They could convert you to a temporary FTE, but that doesn't help your visa. Severance and other costs of letting people go are recognized as soon as the employee walks out the door.