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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.
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Understanding Paid Family and Medical Leave with BSIJul 19, 2024 — In the United States, Paid Family and Medical Leave is a complicated and uneven process. Workers often need time off of work for medical leave, maternity/paternity leave, or caregiving leave, in addition to several other options. Not everyone is guaranteed PFML, as there is no federal law ensuring that workers can access paid days off for these reasons. Many SAP organizations are turning to partners like Business Software Inc. (BSI) to help simplify the burdens and close gaps in payroll tax processes, helping to smooth out the issues associated with Paid Family and Medical Leave. BSI offers solutions like ComplianceFactory to ensure that companies are complying with Federal, State, Local and Territory regulations.
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Corporate Travel & Consulting Company Solves Remote Workforce ChallengesApr 8, 2024 — The convenience of payroll tax assignment management provided this growing, multi-faceted organization with exactly what they needed to get a better handle on their employees’ payroll tax profile concerns.
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Innovating to Maximise Existing SAP HR & Payroll InvestmentJun 14, 2023 — Learn from Glencore Coal Assets Australia (GCAA) on how they have maximized the benefits of their existing SAP HR & Payroll investment through incremental innovation steps. Discover cost-effective and practical ideas, including process automation, rapid prototyping, leveraging unused SAP licenses, and extending functionality using existing data.
1 minute read
Case Study: CONA Services HXM Move from SAP On-Premise to ECPMay 12, 2023 — Coke One North America (CONA) Services, the provider of collaborative tools for Coca-Cola Company's largest bottling partners, successfully migrated from SAP On-Premise to Employee Central Payroll (ECP) using the Nexus Powered "lift-and-shift" approach. By leveraging the Nexus Suite, CONA Services achieved a fast and cost-effective migration, saving significant time and effort. The migration enabled CONA Services to retain the complete history of employee master data within ECP, facilitating seamless payroll processing.
1 minute read