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.

38 results

  1. Preparing SAP Payroll for the end of financial year

    Published: 17/June/2024

    Reading time: 3 mins

    As the Australian financial year draws to a close, organisations are looking to finalise payroll records, Single Touch Payroll and other preparations involving SAP Payroll.  Kapil Jhanji, solution architect at HR and payroll software company Zalaris, said organisations using SAP Payroll should keep it as up to date as possible to make sure the information…

  2. Shifting Payroll Legislation & Strategies to Remain Compliant

    Published: 12/June/2024

    Reading time: 1 min

    Join this session to get updates on recent and upcoming payroll legislation changes in Australia, their workforce impact, top payroll questions, and strategies for HR and People teams to maintain compliance. This content is for Mastering SAP Premium Access members only.Log In Join Now

  3. Temporary Assignments and Higher Duties Assignments in SAP SuccessFactors and ECP/on Prem Payroll without the Public Sector requirements

    Published: 12/June/2024

    Reading time: 1 min

    The temporary assignment/higher duties assignment functionality of SAP SuccessFactors can be quite useful, but it comes with quite a few restrictions out of the box. In this session Chris will discuss how a non-public sector SAP Customer used these functionalities with SAP Payroll to have a solution that solved some key employee flexibility issues. This…

  4. Deep Dive: The Next Horizon for On-prem Users Seeking Robust Payroll Solutions – Navigating to the Cloud

    Published: 11/June/2024

    Reading time: 1 min

    Explore tools and strategies for transitioning from On-Premise ECC to the cloud by 2027, overcoming complexity and customisation to unlock the full benefits of cloud migration. This content is for Mastering SAP Premium Access members only.Log In Join Now

  5. Mountain with the sun peaking through the clouds.

    Reaching the Peak: Simplifying Payroll Overhauls Without Starting from Scratch

    Published: 26/February/2024

    Reading time: 3 mins

    Explore strategies for modernizing payroll systems without rebuilding from scratch, featuring insights from Kapil Jhanji of Zalaris. It discusses the use of pre-built templates, flexible SAP solutions like SuccessFactors ECP, and the importance of expert partnership for efficient, compliant upgrades.

  6. Checklist: How to identify the right global payroll partner?

    Published: 23/August/2023

    Reading time: 1 mins

    Discover the essence of successful global payroll management and tips to select the best payroll partner for international business expansion.

  7. Why payroll and HR reporting is so important for a global people management strategy

    Published: 29/June/2023

    Reading time: 2 mins

    HR reporting and analytics offer valuable insights into various aspects of workforce management. By monitoring quiet quitting, absenteeism rates, and director-level pay, organizations can identify and address potential challenges, boost employee engagement, and improve business performance. Accurate reporting is particularly important in the current complex global payroll landscape, and solutions like Zalaris’ Reporting & Analytics…

  8. Masterclass: Ensuring Payroll Accuracy in a Fully Integrated Environment

    Published: 15/June/2023

    Reading time: 1 mins

    Read the presentation to explore the impact of payroll errors on employee engagement and organizational costs. Discover the challenges organizations face in maintaining accurate payroll data in integrated environments like SAP SuccessFactors. Learn how leveraging automation tools like the Payroll Control Centre and robust reporting can lead to a more efficient payroll process, ensuring accurate…

  9. Innovating to Maximise Existing SAP HR & Payroll Investment

    Published: 14/June/2023

    Reading time: 1 mins

    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. This content is for Mastering SAP Premium Access members…

  10. Case Study: CONA Services HXM Move from SAP On-Premise to ECP

    Published: 12/May/2023

    Reading time: 1 min

    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…