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.

40 results

  1. Tips for Quickly and Easily Creating Custom SAP ERP HCM Forms

    Reading time: 12 mins

    Learn some quick tips for creating custom payslip forms using SAP HR Forms Workplace. Key Concept SAP HR Forms Workplace delivers many standard HR Forms that are grouped by country and form class. It is a graphical design tool used to generate custom reports, forms, and payroll structures. The SAP HR Forms Workplace enables you…...…
  2. Tips to Ease Configuring of Payslips with SAP HR Forms Workplace

    Reading time: 8 mins

    Many organizations face the problem of not being able to see all the payslips within a payroll area in a single PDF file or to print out payslips in PDF format in bulk to deliver to employees. Learn two options for overcoming these issues using enhancements offered by the HR Forms Workplace. Key Concept SAP…...…
  3. 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…...…
  4. 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…...…
  5. Learn All About SAP SuccessFactors Employee Central Payroll: Integrations, Technology, and Implementations

    Reading time: 16 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…...…
  6. 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…...…
  7. 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…...…
  8. 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…...…
  9. 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…...…
  10. 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…...…