issue during H1B transfer due to school shut down

Whether you will be able to make a successful H-1B transfer without leaving the country may depend upon how long it takes you to find another H-1B sponsor and to have the paperwork done. If within a reasonable period of time, it is possible that U.S.C.I.S. will not be overly concerned over the period of time that you have not been working and grant the transfer. Immigration may also decide to approve the H-1B petition but instruct you to pick up the visa outside the US if it believes that the period of time of your non-work as been excessive. I suggest that you enclose a letter with your H-1B transfer application explaining why you do not have recent payslips and accompany it with any proof of the school closure.  

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