Can I keep my SAP Payroll?

July 05, 2019
Written by Danielle Larocca

Senior Vice-President of HCM Solutions Danielle Larocca has worked in the SAP HCM space for over 20 years. An SAP Mentor and featured speaker at numerous conferences, Danielle has authored four best-selling books on SAP, is the Technical Editor for the SAP Professional Journal, and often the Voice of the Expert on SAPInsider’s Ask the Expert series for HR.


The most popular question I am asked by SAP customers is “Can I keep my SAP Payroll?”

There has been quite a lot going on in the SAP HCM space, as detailed in this blog SAP HCM journey from on-premise to the cloud: A high-level outline. Although SAP has evolved many of its offerings, it seems that most customers are still keen to hold on to their SAP Payroll. So, can you keep your SAP Payroll?

My impression is that the large majority of SAP Payroll Customers do not wish to move off their On-premise Payroll for a myriad of reasons, including:
● They have made a large investment in their Payroll and do not want to lose it
● They have complex time and benefits not supported by Employee central Payroll
● They feel like at least another 10 years is a good plan for now (2030)
● They hope that that SAP is going to extend the date again
● They hope that on-prem payroll is never really going away
● They hope that Employee Central Payroll is not the only end state but rather simply another offering for customers

The easy answer to this question is: Yes, you can keep your SAP On-Premise Payroll. With the current offerings from SAP SuccessFactors, their approximately 9,000 licensed On-premise Payroll customers can have guaranteed on-premise support for their HCM system, including Payroll, through AT LEAST calendar year 2030, as detailed in my blog The Future of SAP HCM On-Premise Solutions.

SAP continues to make investments in both areas of Human Capital Management, On-premise SAP HCM and SAP SuccessFactors in the cloud, as shown below. SAP SuccessFactors does have a cloud-first strategy, but not a cloud-only strategy.

Artboard 2-39
Source: SAP © 2019

What is the Side-Car option?

The way to get this guaranteed on-premise support through at least calendar year-end 2030 is via the Side-car option. The Side-car option, launched in 2018, is designed as a bridge for those customers needing more time to start their journey to SuccessFactors. ASUG launched an educational campaign to explain the concept of the Side-car to customers; see SAP releases a new option for customers who want to keep HR on-premise.
Artboard 2 copy-16
Source: SAP © 2019

There are four critical things to note for the Side-car option:
1. It is designed for continuity of a customer’s investment in SAP
2. This solution will only run on an SAP HANA database
3. HCM has to run on its own instance
4. This solution will not become available until 2023

What can I do today to get ready for the Side-car?

The second most popular question I get from SAP HCM customers is “If I want to guarantee my support until year-end 2030 and the Side-car option is not available today - what can I do today to prepare for it?”

The two key requirements to get ready for the Side-car option include:
1. Making sure your SAP HCM is on its own instance (its own box, and not an instance that has other modules on it like Finance for example)
2. Ensuring that your HCM system is running on a HANA database. 

There is an easy way to accomplish both of these things in a non-disruptive and cost-effective way, ensuring continuity with your payroll while aligning you for the future. This is via an offering called PRISM for On-Premise Payroll Extension.

Get ready for HANA Side-car: PRISM for On-Premise Payroll Extension 

You already know the folks at EPI-USE as the Payroll Experts and the team at EPI-USE Labs as the SAP HCM and Payroll product leaders. The SAP-certified Data Sync Manager and Query Manager solutions are deployed at thousands of customers around the world helping organizations maintain their HCM systems and data. It is a combination of both the experts and these products that allow a customer to successfully carve out their system and move to HANA, leveraging the PRISM for On-premise Payroll Extension offering.
Artboard 2 copy 2-14
If you are curious about how much effort it will take for your organization, you can participate in a free assessment. This is an automated service where you execute an analysis program which introspects your current on-premise HCM system. It analyzes your configuration of payroll, custom programs, pay run information and history. During this process, no confidential data is exposed and no actual payroll results are extracted; only a functional and technical assessment is performed. The information collected is transformed into a graphical dashboard (see sample above) that provides valuable insight into your SAP HCM system. This information offers customers the first opportunity to identify any areas that may require attention and or clean up any unused custom objects. This is also useful in determining the amount of effort it will take to get ready for the HANA Sidecar option. Optionally this could include Unicode conversions to OS/DB migrations and/or cloud infrastructure and migration support services.

The PRISM for On-Premise Payroll Extension offering provides customers with a non-disruptive migration that allows them to keep their SAP On-premise Payroll and aligns them with the movement to the Side-car option in 2023, ultimately guaranteeing their on-premise payroll support through calendar year-end 2030.
Artboard 2 copy 3-13
This provides you with flexibility to upgrade your ECC into an S/4 solution and take advantage of a longer support window. If you are curious and want to learn more, please feel free to reach out to me directly at

There are several offerings within our PRISM family of Transformation without re-implementation solutions. We can help you to identify the one that works best for your organization.




Explore Popular Tags

Query Manager SAP SuccessFactors HCM Reporting SAP HCM reporting SAP HCM reporting EPI-USE Labs HCM Payroll SAP Reporting Document Builder SAP Query Human Capital Management (HCM) SAP Analytics Cloud sap query hr Data Sync Manager Payroll Data SAP HCM Data SAP Payroll SAP Payroll data SAP SuccessFactors Employee Central Payroll Variance Monitor Microsoft PowerBI Query Manager Analytics Connector reporting solution sap Employee Central Payroll Journey to SAP SuccessFactors Pay Recon Tableau data validation payroll control center HR OData PRISM Payroll reporting SAP ERP HCM SAP HCM Analysis SAP On-Premise customers SAP SuccessFactors People Analytics SAP SuccessFactors Reporting SAP customers SuccessConnect 2019 Successconnect Tax Reporting cloud-based SAP HCM solutions data source people analytics ABAP COVID-19 DSM for HCM Employee Letters Free HCM Assessment Human Resources data Hybrid reporting Hybrid reporting solution Microsoft Excel OM On-Premise Payroll On-Premise Payroll S/HANA Sidecar On-premise reporting PA Query Manager with Document Builder SAP HCM On-Premise Solutions SAP HCM On-premise SAP Payroll to the Cloud SAP SuccessFactors Roadmaps SAP migration SAPPHIRE 2018 Success Factors SuccessFactors' Employee Central Payroll The Report Center The Road to People Analytics Transformation without re-implementation Workforce Planning ad hoc certification custom infotype easy reporter ebook high-speed, low-risk on-premise SAP HCM on-premise SAP data personalized documents roadmap s/4HANA sap hr reporting single reporting solution sq01 successfactors technology ALE STP report ASUG Accessing COVID-19 data Ad Hoc Query American Payroll Association (APA) Analytics Connector Analytics solution Analytics solutions At-risk employees Australian Payroll Australian Tax Office (ATO) Automated analysis and pay run reconciliations Automated reports Best practice in BI Bots Business Analytics Business Intelligence COVID-19 statistics Certified solutions Client Sync Company Branding Comparing data Coronavirus Created timestamp DSAG Data Replication Description Diversity & Inclusion reporting DocuSign Document Building Dynamic data ECC EPI-USE Labs’ solutions ERP Education sector Electronic Signatures Employee Central Employee Central Payroll Reporting Employee NICs Employee data Employee payment summaries Employer NICs Encrypt data FAQ Index Font Guidelines Gender Pay Gap GeoClock Government forms Grid control Grid layout HANA HCM Client Sync™ HCM, HR HMRC HR Innovations 2019 HR Service Delivery HR conference HR documents Historical payroll results Human Capital Management Human Resources reports HumanRevolution Hybrid Reporting SAP and SuccessFactors IRS Tax Withholding Estimator Integrated reporting SuccessFactors SAP Intelligent Enterprise Intelligent HR and Payroll Intelligent slicing of payroll data JHUCSSE Knowledge Base (KB) Articles LabsScript Learning and growth Leave Liability Reporting Let's Talk HCM Leveraging Fiori Technology Location Managed Payroll Merging and splitting of cells Modified timestamp New York Times News OCHA OData integration Object Sync Organization of the data Owner Parent template Password protection Pay As You Go (PAYG) Pay reconciliation Payroll support and reconciliation Personnel Management Problem with SuccessFactors Reporting Protected Earnings Amount (PEA) Query Manager Fiori app Query Manager Formula Builder Query Manager Runtime License Query Manager in Excel ROI Calculator Rate Field functionality Recruitment data Results Table Return on investment Rich text formatting Road Map Robotic Process Automation framework Runtime-Only License SAC SAP Analytics Cloud (SAC) SAP Analytics Cloud Data Sources SAP Business Suite 7 SAP Cloud Platform Integration (SCPI) SAP ERP Payroll customers SAP Easy Menu SAP Fiori SAP HANA SAP HCM Payroll SAP HCM and Payroll customers SAP HCM and Payroll? SAP Mentors SAP Notes SAP Road maps SAP S/4HANA SAP SuccessFactors Employee Central timesheets SAP SuccessFactors Managed Payroll SAP SuccessFactors Mass Data Tools SAP SuccessFactors Release updates SAP Wage Type Reporter SAP certified solution SAP credentialsSAP credentials SAP data SAP system, SAP tables SAP-certified SAP-certified reporting solution SAPPHIRE SAPPHIRE-NOW SAPinsider event SQ01 reporting Sapphire/ASUG 2019 Save HR report costs Save costs? Query Manager ROI calculator Secure scrambled production data for testing Sidecar option, launched in 2018 Single Touch Payroll (STP) Standard Government HR Forms Standard forms Static text Strategic Reporting and Analysis Student Loan Deductions SuccessConnect 2018 SuccessFactors Operational Reporting & Dashboards SuccessFactors Reporting Solution Portfolio SuccessFactors Workforce Analytics SuccessFactors and the Intelligence Enterprise SuccessFactors report-building tools Tackling reporting challenges Templates The Future of SAP HCM On Premise Solutions
+ See More

Get Instant Updates

Leave a Comment: