It would be nice to have a box to check on Employees and Vendors to only show active vendors and Employees, like their is in projects. If you have a lot of vendors or employees with the same beginning letters you have to hunt for the one you are looking for, it would be nice to have the drop down list only show active employees or vendors.
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For vendors, the option is already there. Click the lookup list and there is a check box to for "Include Inactive Vendors" or "Include one Time Vendors". Once you check it or uncheck it, the lookup will open with those defaults.
You also have the checkbox for Employees for "Include Inactive Employees". Maybe you did not see this.