Will i be out of status if my company stops my payroll while i am on L1 extension

L-1 nonimmigrant status has no grace period in your situation. That being said, your leaving the United States quickly after your project ends would be seen favorably by an American consular officer when you return overseas for your H-1B visa interview. Due to the limitations of the Lawyers.com Forums, Alan Lee, Esq.'s (the "Firm") participation in responding to questions posted herein does not constitute legal advice, nor legal representation of the person or entity posting a question. No Attorney/Client relationship is or shall be construed to be created hereby. The information provided herein by the Firm is general, and requires that the poster obtain specific legal advice from an attorney. The poster shall not rely upon the information provided herein as legal advice nor as the basis for making any decisions of legal consequence.