SAP Payroll


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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.

27 results

  1. 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…
  2. 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…
  3. Understanding payroll and time options

    Reading time: 5 mins

    Payroll and time management are among the most mission critical applications for any organization. Sessions in this track discuss the latest enhancements and the planned innovation across core HR, payroll, and time that will not only meet existing requirements of on-premise solutions but will also add value to their organizations. Engage with industry experts and…
  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. paycheck

    Expert Advice to Help Prepare You for Employee Central Payroll

    Reading time: 6 mins

    The adoption of SAP SuccessFactors Employee Central Payroll increased dramatically between 2018 to 2019. Understand customer trends related to Employee Central Payroll and the ways it differs from on-premise SAP Payroll.
  10. 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…...…
  11. 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…
  12. Integrating SAP Payroll with Accounting (FI/CO) and Benefits

    Reading time: 9 mins

    Thank you for registering for this live Q&A on automating and integrating SAP Payroll with finance (FI/CO) and benefits. Please find the transcript below. Sue Dainis: Hello and welcome to today’s live Q&A, “Integrating SAP Payroll with Accounting (FI/CO) and Benefits.” We’re looking forward to a lively discussion. Thanks to everyone who has submitted their…...…
  13. Take Advantage of Underutilized Functionality to Streamline Payroll Processes

    Reading time: 19 mins

    Q&A with Dolphin Experts on Crafting a Successful Information Management Strategy This content is available to (General or Premium) members. Sign in or Join for free! Sign In Become a Member
  14. Understand Leading Practices for Defining Your Payroll Systems of Record Using a Hybrid Solution

    Reading time: 6 mins

    Learn how to define the systems of record for all data components involved in SAP payroll processes, the designation of where they exist, and where they are maintained: SAP payroll on-premise, SAP SuccessFactors Employee Central, and SAP SuccessFactors Employee Central Payroll. This content is available to Premium Members. Sign In Learn more about Premium Access
  15. Quick Tip: What Are the 4 Options for Existing SAP Payroll Customers?

    Reading time: 7 mins

    Sergei Peleshuk provides an overview of SAP BW/4HANA and key considerations to think about when making the decision to migrate. This content is available to Premium Members. Sign In Learn more about Premium Access
  16. What Are the Key Considerations Behind the Use of the Employee Central Payroll Global Template?

    Reading time: 13 mins

    Review these considerations for using a global template for implementing Employee Central Payroll. Various decisions may positively or negatively affect your payroll implementation. This content is available to Premium Members. Sign In Learn more about Premium Access
  17. 5 Steps to Set Up SAP HCM Configuration for Imputed Income Calculation

    Reading time: 11 mins

    Understand how standard SAP configuration can be implemented and tested for imputed income calculation. This guide explains the key configuration steps required to set up the imputed income calculation related to configuration and validation in the payroll results table. Key Concept Section 79 of the US Internal Revenue Code (IRC) requires employers to calculate taxable…...…
  18. Tips for Quickly and Easily Creating Custom SAP ERP HCM Forms

    Reading time: 12 mins

    Sergei Peleshuk provides an overview of SAP BW/4HANA and key considerations to think about when making the decision to migrate. This content is available to Premium Members. Sign In Learn more about Premium Access
  19. Tips to Ease Configuring of Payslips with SAP HR Forms Workplace

    Reading time: 8 mins

    Sergei Peleshuk provides an overview of SAP BW/4HANA and key considerations to think about when making the decision to migrate. This content is available to Premium Members. Sign In Learn more about Premium Access
  20. Live from SAPinsider Studio: Mike Timm on SAP Payroll and Payroll Control Center

    Mike Timm, Founder and Managing Partner, Integrated Consulting Group, visits with SAPinsider Studio at the HR 2017 event in Orlando, Florida, to discuss SAP Payroll, SAP Payroll Control Center, and moving payroll to the cloud with SAP SuccessFactors. Topics of this discussion include: Payroll automation functionality, including process models and third-party remittance Maturity of the…...…
  21. Live from SAPinsider Studio: SAP Payroll Q&A from HR 2017

    Mike Timm of Integrated Consulting Group and Marty Schmoker of United Launch Alliance visit with SAPinsider Studio at the HR 2017 event in Orlando, Florida, to discuss questions posed by attendees of the SAP Payroll Q&A session at the conference. Timm and Schmoker served as session moderators. Topics of this discussion include: The level of…...…
  22. Learn All About SAP SuccessFactors Employee Central Payroll: Integrations, Technology, and Implementations

    Reading time: 30 mins

    Gain an overview of the benefits—and any potential drawbacks—of making the transition from SAP and non-SAP payroll platforms to SAP SuccessFactors Employee Central Payroll. Key Concept In addition to using SAP SuccessFactors Employee Central as their core HR platform, companies are now faced with the decision of whether to switch to Employee Central Payroll as…...…
  23. Automate and Streamline Your SAP Payroll Process

    Reading time: 26 mins

    The payroll process comprises multiple steps involving configuration and integration. How can you get the most ROI from your SAP solutions?  How can you make processes less manual? What SAP ERP functionality is available to you that you have not yet utilized, such as Payroll Control Center? HR 2017 speaker Mike Timm answered reader questions…...…
  24. An Introduction to SAP Payroll Processing Control Center Add-On

    Reading time: 14 mins

    Learn about the functionality of the new front-end interface of the SAP Payroll Processing, control center add-on tool, used by organizations to innovate their payroll processes by providing a new user experience for running payroll and resolving payroll issues. Learn the business reasons for implementing this functionality and learn about the different roles and responsibilities…...…
  25. HR Connections: Mike Timm on Streamlining Payroll Processing

    Reading time: 11 mins

      Mike Timm, Founder and Managing Partner, Integrated Consulting Group, discusses the SAPinsider HR 2016 Vienna event, SAP Payroll Control Center functionality, and streamlining payroll processing in the latest installment of HR Connections. This is a slightly edited transcript of the discussion: Ken Murphy, SAPinsider: Hi, this is Ken Murphy with SAPinsider and this is…...…
  26. An Overview of Canadian Payroll in SAP ERP HCM

    Reading time: 31 mins

    Learn how various statutory contributions and deductions for Canadian payroll can be configured in the SAP ERP HCM payroll system. Key Concept Various technical wage types, cumulating classes, and data from tables are used in the calculation of statutory contributions and deductions for Canadian payroll in an SAP payroll system. These calculations often can be…...…
  27. Understanding the SAP Payroll Reversal Process

    Reading time: 17 mins

    Understand and use the standard SAP process for payroll reversal by using the off-cycle workbench. Learn the required steps for when a payment is issued in SAP payroll to an employee that should not have been issued. Learn the details and identify all the options when you need to reverse a check, based on where…...…