SAP Payroll


What Is SAP Payroll?

Payroll is such a vital component to employee satisfaction that many companies are hesitant to make any changes — even if there are potential benefits to updating processes or technologies. This is reflected in SAP Payroll offerings — the traditional on-premise SAP Payroll and the cloud-based SAP SuccessFactors Employee Central Payroll. The cloud offering is essentially identical to the on-premise offering, except for where the servers are hosted.

SAP has hinted at plans to build a next-generation payroll solution, but that often takes a backseat to investments in other areas of its human resources (HR) technology suite.

Making an error on an employee’s paycheck is one of the fastest ways to receive a notice of resignation, so the reticence to change payroll at many companies, and the motivation for SAP to build a new payroll system, is explainable.

What Is SAP Payroll?

Payroll is such a vital component to employee satisfaction that many companies are hesitant to make any changes — even if there are potential benefits to updating processes or technologies. This is reflected in SAP Payroll offerings — the traditional on-premise SAP Payroll and the cloud-based SAP SuccessFactors Employee Central Payroll. The cloud offering is essentially identical to the on-premise offering, except for where the servers are hosted.

SAP has hinted at plans to build a next-generation payroll solution, but that often takes a backseat to investments in other areas of its human resources (HR) technology suite.

Making an error on an employee’s paycheck is one of the fastest ways to receive a notice of resignation, so the reticence to change payroll at many companies, and the motivation for SAP to build a new payroll system, is explainable.

Vendors such as Deloitte offer SAP Payroll and SAP SuccessFactors Employee Central Payroll implementation and consulting services. There are companies, such as Alight, that also administer payroll services for an organization partially or completely with the option to use technologies like SAP Employee Central Payroll.

Many SAP customers also use non-SAP payroll systems that integrate with SAP systems such as ADP or Paychex.

Key SAP Payroll Considerations for SAPinsiders

  • Mainstream maintenance for on-premise SAP Payroll is scheduled to end in 2027. Current SAP Payroll customers will have to consider the option of moving to SAP SuccessFactors Employee Central Payroll in the cloud, which currently has no end-of-maintenance date, or a non-SAP payroll product. Staying with on-premise SAP Payroll beyond 2027 will require extra maintenance fees or third-party maintenance services.
  • Payroll has slower cloud adoption than other HR technologies. In our recent HR Technology State of the Market report, among surveyed respondents that indicated they were using payroll technology, 18% indicated that the system was currently deployed in the cloud, the lowest cloud adoption rate of any technology mentioned. Cloud payroll adoption is rising, with another 19% currently implementing a cloud payroll solution. However, nearly 11% of respondents indicated having no plans for payroll in the cloud, more than double the proportion of any other technology.
  • Payroll accuracy is a top HR objective. In the same HR Technology State of the Market report mentioned above, reducing errors in time and payroll was the top HR technology strategy objective among respondents, which were predominantly HR professionals. Getting payroll right isn’t just a concern for the finance and compliance departments. Those in HR know the importance it holds to their ability to retain talent.

26 results

  1. hybrid workforces payroll

    Hybrid Workforces Bring Unique Payroll Challenges

    Reading time: 3 mins

    Hybrid workforces are now common at most organizations, but they bring extra human resources challenges, especially around payroll.
  2. Tips for a successful transition to SAP SuccessFactors Employee Central Payroll

    What key lessons have customers learned during SAP SuccessFactors Employee Central Payroll implementations? Attend this session to hear the experiences of IBM clients who have moved to Employee Central Payroll and get advice for how they managed and overcame any challenges along the way. You will hear details of some of the more common implementation…
  3. Interactive Discussion | Continuous improvement in an Employee Central Payroll environment

    Going live with Employee Central Payroll is a major effort for some companies and getting the most from it after go-live can require some effort. In this informative panel discussion, you will get insights from SAP, customers, and expert consultants to help you understand how companies are making the most of their Employee Central Payroll…
  4. Enhance the Payroll Experience

    Reading time: 5 mins

    The payroll function has always been associated with transactional processing and manual reconciliation, executing various programs and reports, and spending countless hours performing data validations and reconciliation in spreadsheets. This process can be laborious for payroll administrators and is prone to human error. Cloud-based integrated HR technologies can lead to more purposeful audits and a…
  5. Navigating COVID-19 Payroll Tax Changes

    Reading time: 4 mins

    The COVID-19 (Coronavirus) outbreak has had a widespread impact on business operations nationwide. With thousands of employees unable to go into the office or without a job at all due to the temporary shutdown of many businesses, the unemployment rates have skyrocketed and the stock market has taken a dive. Read this article to learn…
  6. FP&A Quick Start: Provides Pre-Built Models for Finance, Payroll and CE

    Reading time: 0 min

    With xP&A Accelerator powered by SAP Analytics Cloud, you can quickly integrate a collaborative cloud-based planning and reporting solution into your FP&A process. Find other insightful content from Protiviti on their Vendor Showcase
  7. Case Study: Automating financial processes for weekly payroll uploads

    Reading time: 0 min

    Learn how utilizing an Excel-based solution for payroll uploads delivered great time savings and eliminated errors at Fender. Find other insightful content from Magnitude on their Vendor Showcase.
  8. Q&A: Payroll and Its Impact on Cloud HR

    Reading time: 4 mins

    AJ Whalen, Senior Research Analyst, HR, SAPinsider spoke with Imran Sajid, Director HXM Solution Marketing, SAP during an SAPinsider webinar on Thursday, May 7, 2020 to review the findings of a recent SAPinsider benchmark study that looked at customer payroll strategies and practices – including the solution landscape and technologies they use – to understand…
  9. State of the Market: Payroll and Its Impact on Cloud HR

    Reading time: 1 min

    This SAPinsider benchmark study looks at customer payroll strategies and practices – including the solution landscapes and technologies they use – to understand the top issues facing payroll organizations and executives. The report also examines where customers are seeing business value in their payroll processes and the ways in which payroll technology may be impacting…...…
  10. To Outsource or Not to Outsource: The Role Payroll Can Play in Cloud HCM Adoption

    Reading time: 7 mins

    SAPinsider recently spoke with Mike Ellis, President, Rizing HCM APAC, to discuss the state of SAP SuccessFactors market today, global trends he is hearing from clients, and options for SAP customers in the area of outsourcing payroll specifically. Ellis, who has nearly 30 years of experience in HR transformations, cloud implementations, and payroll outsourcing, was…