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.
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What Are the Key Considerations Behind the Use of the Employee Central Payroll Global Template?
Review these considerations for using a global template for implementing Employee Central Payroll. Various decisions may positively or negatively affect your payroll implementation. Membership Required You must be a member to access this content.View Membership LevelsAlready a member? Log in here
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Reaching the Peak: Simplifying Payroll Overhauls Without Starting from Scratch
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.
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How to Configure Canadian Payroll Year-End Mapping
Learn the year-end process for Canadian SAP payroll systems, and what year-end forms are required. This step-by-step process shows how to configure the year-end mapping process and how to test the configuration. Key Concept The year-end process in SAP payroll is necessary because the system needs to have a required configuration for running payroll and...…
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Upgrades Part 4: Fix a Payroll Driver Runtime Error
Discover a payroll problem you may face in your main payroll driver program when you upgrade from R/3 4.6C to mySAP ERP and see how you can permanently correct it. Key Concept Payroll is based on an international payroll driver that SAP provides for each country. The country-specific payroll drivers take the statutory and administrative...…
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Key Facts Every Company with Canadian Connections Needs to Know About Legal Deductions
Learn how your SAP system helps you to complete legal deductions in Canada for federal and provincial taxes, the Canada Pension Plan/Québec Pension Plan (CPP/QPP), and Employment Insurance (EI). Key Concept If your company is located in Canada, has recently opened a division there, or has hired Canadian employees, you must account for the legal...…
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Best Practices for Converting Historical Data in SAP ERP HCM
See how to take a comprehensive approach to managing historical data from start to finish during an SAP ERP HCM implementation. Key Concept Requirements for the conversion and management of historical data range from the operational to the strategic. Handling historical data during SAP implementations needs to begin with a requirements analysis and then continue...…
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Four Tips on Applying Payroll Schemas and Rules
In part two of his series on payroll schemas and rules, the author gives four tips on making new rules or changing existing rules. He covers how to stay compatible with SAP’s standard schemas and rules, where to place custom rules in the payroll schema, how to salvage poorly written or incorrect custom rules, and...…
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Back Up Your T512W Table to Prevent Payroll Disaster
A variety of configuration processes may result in unwanted changes to your T512W table, the core table of your SAP R/3 Payroll system. Two standard SAP programs could prevent headaches by giving you the ability to restore previous configurations of your T512W table. Key Concept The SAP Payroll system uses wage types to permanently or...…
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Link SAP Payslips to Your Excel Payroll Reports
When you are viewing SAP payroll reports, they often make more sense when viewed side-by-side with employees’ payslips. This adds context and makes payroll reports much easier to understand. Learn a simple way to link payroll reports to employee payslips with short macros in Excel using Visual Basic for Applications (VBA). No ABAP code is...…
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Hybrid Workforces Bring Unique Payroll Challenges
Hybrid workforces are now common at most organizations, but they bring extra human resources challenges, especially around payroll.
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