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SAP on-premise Payroll customers have the option of a subscription-based, hosted and managed Payroll in the cloud. All of this under a single contract with SAP and delivered by EPI-USE Labs.

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Introducing SAP SuccessFactors Managed Payroll
by EPI-USE Labs

Now, SAP on-premise Payroll customers have the option of a subscription-based, hosted and managed Payroll in the cloud. All of this under a single contract with SAP and delivered by EPI-USE Labs.

The best news? You don’t need to re-implement your Payroll. You can keep your customisations, your time implementation and enjoy the functional richness of your existing system.

Our Managed Payroll offering brings fresh intelligence to the field of on-premise hosting in the cloud. The outcome is greater efficiency, incredible agility and genuine ease-of-use.

[fa icon="plus-square"] What is SuccessFactors Managed Payroll?

The SAP SuccessFactors Managed Payroll offering, announced in August 2016, is an initiative for companies using SAP HCM on-premise Payroll who wish to migrate to SuccessFactors Employee Central and keep their existing SAP on-premise Payroll without a re-implementation. The migration uses a "lift-and-shift" process that results in hosting and management in the cloud. In this way Managed Payroll allows you to continue leveraging your investment in SAP Payroll and lowers the risks inherent in a Payroll re-implementation.

Managed Payroll includes subscription-based licensing, hosting and application management, all delivered under a single contract with SAP. The net effect is a Software-as-a-Service-like experience based on the Payroll you already use and trust. In addition, Managed Payroll combines the best of both SAP and SAP SuccessFactors solutions.

[fa icon="plus-square"] SAP Customer options for payroll

1. SAP SuccessFactors Employee Central Payroll

SuccessFactors does not offer a new Payroll solution, rather leverages the world-class, multinational SAP Payroll in a cloud environment hosted by SuccessFactors called Employee Central Payroll. To move to this model, customers are required to do five things:

  1. Choose from two options for deployment: Customer-Managed or Partner-Managed
  2. Purchase a SuccessFactors Employee Central licence
  3. Purchase a SuccessFactors Employee Central Payroll licence
  4. Re-implement and simplify (remove customisations) in their existing SAP Payroll
  5. Build integrations (as needed) to partner for Time and or Benefits processing

2. SAP SuccessFactors Managed Payroll

Your SAP Payroll is hosted in the cloud environment by EPI-USE Labs and called SuccessFactors Managed Payroll.  To move to this model, customers are required to do three things:

  1. Sign up for Managed Payroll through SAP
  2. Commit to subscribe to Employee Central (EPI-USE Labs will then lift-and-shift your existing Payroll to the EPI-USE Labs Unified Platform)
  3. Testing and Go-live
[fa icon="plus-square"] A side-by-side comparison of payroll options




1. Cloud Payroll solution hosted by SAP 1. Cloud Payroll solution hosted by EPI-USE Labs
2. Requires a simplification and re-implementation of Payroll 2. No simplification or re-implementation of Payroll required
3. Standardised Payroll (reduces Payroll complexity) 3. Allows for complex Payroll
4. Replaces SAP Time with third party integration solution 4. Keeps SAP Time functionality
5. Replaces SAP Benefits with third party integration 5. Keeps SAP Benefits solution
6. One vendor for subscription, licences, service and support 6. One vendor for subscription licences, service and support
7. SAP or Partner provide application management, hosting and support services 7. Partner provides application management, hosting and support services
8. Can be on SAP's paper (large organisations) or partner-managed (small and mid-sized organisations) 8. On SAP paper
9. Combines best of SuccessFactors and third party 9. Combines best of SAP and SAP SuccessFactors solutions
  10. Integrates with SuccessFactors Employee Central
  11. Low risk option
[fa icon="plus-square"] Is Managed Payroll Right for you?
[fa icon="plus-square"] How does it work?

Migration in six steps:

  1. Create the target system using DSM System Builder.
  2. Copy the customising from current production to new HCM production using DSM Client Sync.
  3. Copy individual master data objects and selected tables for the HCM system using DSM Object Sync.
  4. Apply and test support packs for the new HCM system, as well as subsequent OSS notes, corrections and configuration.
  5. Set up inter-system links to enable the now-separated HCM and FI systems to communicate via ALE.
  6. Set up the user masters with the appropriate roles and unlock the user masters.
[fa icon="plus-square"] SAP SuccessFactors Managed Payroll capabilities and benefits

The key business capabilities and benefits of Managed Payroll are:

Business Capabilities


Current Payroll moved to EPI-USE Labs' cloud Move to a subscription-based model sold on SAP paper
Payroll hosted and operated in the EPI-USE Labs' cloud No re-implementation of Payroll
Managed services for legal change, support and maintenance Free up internal resources tied up with Payroll system management
  Reduced risk of noncompliance penalties
  Move from capital expenses to operating expenses
[fa icon="plus-square"] Three reasons to choose EPI-USE Labs as your partner

Client reputation and global presence
EPI-USE, the world's largest, independent SAP HCM and Payroll specialist is able to leverage thousands of global consultants to assist in this specialised service. In our 35-year history, we have implemented more than 500 SAP HCM-based solutions around the world. Our range of add-on software products enable EPI-USE Labs' clients to access exceptional productivity tools and thereby enhance their existing or planned implementations of SAP HCM. With a presence covering 22 countries, EPI-USE is the premier global independent purveyor of SAP payroll country versions for regions in which SAP does not offer a standard solution.

Experience doing customer HCM carve-outs
EPI-USE Labs has successfully completed these types of HCM carve-outs for numerous clients with a 100% success rate for on-time and on-budget delivery. Customers leverage our existing platform, EPI-USE Unified Platform (UP), for this service. Check out the AFGRI success story.

Existing tools and or accelerators to assist in the lift-and-shift of the Payroll
EPI-USE Labs, the software division of EPI-USE, has a proprietary suite of software products for data and landscape management and hosting and migration services to accelerate the move of clients from on-premise implementations to Managed Payroll. The costs and risks of adopting Managed Payroll are significantly reduced through these measures. These tools include Cloud Conveyer, Data Sync Manager, System Landscape Optimization services and Query Manager which are designed to increase the speed and accuracy of the lift-and-shift transition to the Managed Payroll offering.

FAQs: SAP SuccessFactors Managed Payroll

[fa icon="plus-square"] Why should I move to Managed Payroll?

You can keep using your existing investment in on-premise SAP Payroll. This solution doesn't require a Payroll re-implementation, as it would with Employee Central Payroll.
It's lower risk than a complete re-implementation as it leverages your existing and proven Payroll implementation.
It gives you a way to move your on-premise SAP HCM into the cloud at a managed pace.
You don't have to manage the SAP/EC licensing, hosting, basis or functional support with different vendors, as it is all under one SAP contract, backed by strict Service Level Agreements (SLAs).
The cost of Managed Payroll replaces the costs of maintenance, hosting, AMS and other related IT costs (integration, audits, analytics, etc). The business case is different per client but SAP and EPI-USE Labs work together with you to build your specific business case.

[fa icon="plus-square"] What is included in the Managed Payroll offering?

Subscription-based licensing for SuccessFactors Employee Central and the existing on-premise HCM software. This model replaces existing HCM maintenance fees.
Strict, contractual Service Level Agreements (SLAs) for system availability, stability, security, issue resolution and response times.
Hosting of existing SAP HCM systems. This includes the data centre, computing, operating system, storage, networking, backups and disaster recovery.
Application Management of existing SAP Payroll system.

[fa icon="plus-square"] What is the difference between Managed Payroll and SuccessFactors Employee Central Payroll?

There are two main distinctions:

Managed Payroll is ideal if you want to migrate your on-premise HCM/ Payroll solution to a subscription-based model, without making any functional changes to your existing solution. Employee Central Payroll requires re-implementation based on SAP standard functionality.
Managed Payroll provides full HCM, Payroll, Time and Benefits functionality, which is not intrinsically supported in Employee Central Payroll.

[fa icon="plus-square"] Do we really get to keep all of our customisations?
Yes, although there may be nuances, depending on your exact implementation. Everything you have today can be migrated to EPI-USE Labs for hosting and AMS. From a software point of view, you won't lose any functionality, because it is your existing SAP Payroll system, just moved to our cloud – we are hosting it for you.
[fa icon="plus-square"] Why did SAP pick EPI-USE Labs as a Managed Payroll partner?
EPI-USE is the world’s largest, most experienced independent SAP HCM specialist and has emerged as a leader in designing, building and implementing SuccessFactors Cloud-based, hybrid and on-premise HR/Payroll systems for large, complex multinational corporations. In its 35-year history, EPI-USE has implemented or been involved in more than 750 SAP HCM-based solutions around the world. EPI-USE's Cloud Conveyer product simplifies the move from SAP HCM on-premise to SuccessFactors Employee Central. EPI-USE leverages our thousands of consultants around the world to assist in this specialised service. EPI-USE Labs has successfully completed these HCM carve-outs/migration projects for numerous clients before, with a 100% success rate for on-time and on-budget delivery. EPI-USE Labs’ proprietary suite of software products for data and landscape management, hosting and migration services accelerate the transition from on-premise implementations to Managed Payroll, significantly reducing the cost and risk of adopting Managed Payroll.

FAQs: Implementation

[fa icon="plus-square"] How does the implementation work?
Your existing HCM implementation is lifted and shifted to EPI-USE Labs' hosted environment, called the EPI-USE Unified Platform (UP for short). EPI-USE Labs have Data Sync Manager and System Landscape Optimisation (SLO) services, that were designed to carve out the existing SAP HCM System from the rest of your SAP landscape. HCM can then reside on its own servers with interfaces to your other SAP systems. You can then gradually move sections of the existing on-premise functionality over to SuccessFactors Employee Central and we recommend leveraging Cloud Conveyer for this transformation. The payroll and time portions, however, stay with EPI-USE Labs.
[fa icon="plus-square"] What is an HCM Carve-Out and what is its role?

EPI-USE Labs has a unique HCM carve-out offering. For most clients SAP HCM is only a small part of a bigger SAP implementation that includes FI/CO, logistics, etc. In many cases HCM runs on the same servers as the rest of the SAP system. To move clients to Managed Payroll, we remove or carve out HCM from the rest of the SAP systems, so that HCM can live on its own servers with interfaces back to the other SAP systems.

Fortunately, EPI-USE Labs has System Landscape Optimisation (SLO) services that were designed to do exactly this. We have performed these HCM carve-outs for numerous clients before. Using our proprietary SAP data management suite of products, Data Sync Manager, the cut-overs are much quicker than traditional data-loading methods and are also more reliable and predictable than custom ABAP programming methods. Our methodology ensures easily repeatable test and validation cycles, which means that test cut-overs can be executed and re-executed with minimal effort. Data Sync Manager was originally created to enable users to quickly re-create the exact employee data from the production system in a test system. It has been available as an SAP add-on since 1996. Over the years, ongoing enhancement and the addition of various specialised components, has resulted in DSM being used for Production Data Migrations on many occasions around the world.

More information about HCM carve-outs, including a case study, can be found at the SLO page on EPI-USE Labs web site.

[fa icon="plus-square"] What happens to my existing HCM/payroll interfaces to other systems?
Migrating existing interfaces to banks, benefit providers, self-service solutions, SAP FI, time-keeping systems and others, is a major part of the migration process. This is included in the scope of the project, as each client's situation is unique.
[fa icon="plus-square"] What is the Cloud Conveyer and what role does it play?

Cloud Conveyer is an EPI-USE offering to help existing HCM on-premise clients to move directly to SuccessFactors EC and Employee Central Payroll. Cloud Conveyer includes various solutions and accelerators to make the migration faster and more predictable. It's a combination of methodology, project plan, templates and products, that accelerate on-premise to cloud implementations. For more information, please visit:

Once the HCM carve-out has been completed and the HCM system moved to Managed Payroll, clients can work with us to receive a clear roadmap for moving functionality over from the carved-out HCM system to SuccessFactors EC and Employee Central Payroll.

[fa icon="plus-square"] Can Managed Payroll offer me everything I have today or do I lose functionality?
The simple answer is that you retain what you have, although there may be nuances, depending on your requirements and circumstances. Everything you have today can be migrated to EPI-USE Labs for hosting and management. From a software point of view, you won't lose any functionality because it is the same as your existing system.