Keep your existing SAP Payroll solution

Lift-and-shift or carve out your existing SAP HCM on-premise Payroll to the cloud, without a reimplementation.

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Continue to run your Payroll as you do today without interruption

complex Time and or Benefits solutions

Continue to work with your complex Time and or Benefits solutions in SAP Managed Payroll

Move from capital expenses to operating expenses

Move from capital expenses to operating expenses

It’s a confusing time for SAP’s approximately 9,000 licensed on-premise Payroll customers. In 2012, SAP announced a movement to the cloud and guaranteed support date for its on-premise solutions, including Payroll, through calendar year-end, 2025. Earlier this year it was extended to year-end 2030 for those customers who upgrade their license to S/4HANA.

SAP appreciated the concerns of its customers and they have adapted accordingly. Since the 2012 announcement, SAP SuccessFactors created various landscape models for their customers as they made the transition from on-premise to the cloud. These models allowed the customers to journey at their own pace.


SAP SuccessFactors Managed Payroll

What is Managed Payroll?

SAP SuccessFactors Managed Payroll allows you to lift-and-shift or carve out your existing SAP HCM on-premise Payroll to the cloud, without a costly, lengthy and risky reimplementation. It is designed for customers who have made a large investment in their on-premise HCM solution, and want to leverage that, while also enjoying the benefits of hosting and management in the cloud.

Benefits of Managed Payroll
  • Allows you to continue leveraging your investment in SAP Payroll.
  • Avoids the risks inherent in a Payroll re-implementation required if you elect to move to SAP SuccessFactors Employee Central Payroll.
  • Allows you to avoid moving to partners for integration needs not currently covered by SAP SuccessFactors.
  • 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 (SaaS) experience, based on the Payroll you already use and trust.
  • Combines the best of both SAP and SAP SuccessFactors solutions.


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What are the four options for existing SAP on-premise Payroll Customers?

SAP has approximately 9,000 active on-premise Payroll customers. SAP SuccessFactors have embarked on a journey to transform from an on-premise (client-server) solution to a cloud-based SaaS offering. The goal is for customers to begin a journey from their on-premise SAP systems to SuccessFactors and the cloud.

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[fa icon="plus-square"] Keep on-premise Payroll

This is a do-nothing approach. Customers have invested a large amount of time, money and resources into their Payroll systems to get them to work just the way they want them to. Support for on-premise SAP solutions is guaranteed through calendar year-end 2025, or 2030 for customers who upgrade to S/4HANA.

[fa icon="plus-square"] Move to Employee Central Payroll

SAP SuccessFactors does not offer a new payroll solution, rather they leverage the world-class multinational SAP Payroll in a hosted cloud environment by SAP 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 license (not required under partner-managed EC)
  3. Purchase a SuccessFactors Employee Central Payroll license (not required under partner-managed ECP)
  4. Re-implement and standardize their existing SAP Payroll
  5. Build integrations (as needed) to partners for Time and or Benefits processing
Why do I have to reimplement and simplify to move to Employee Central Payroll?

For a long time, SAP has been a system that is completely customizable; each customer has designed the system (including its time and benefits functionality) to support their unique business processes and needs. SAP SuccessFactors, however, is based on a best-practice methodology. Employee Central Payroll has a higher level of standardization from the on-premise payroll solution, for example, you are not permitted to make core modifications or changes to enhancement spots. Complex benefits and time functionality are not yet mature in SAP SuccessFactors, so customers would either have to simplify their processing and try and leverage the new functionality in Employee Central Time and/or Benefits, or leverage the partners that SAP SuccessFactors recommends using to replace the functionality currently available in on-premise for Time and Benefits. The ideal customers for Employee Central Payroll are those without complex time or benefits configuration. For more information on this please consult this blog.

[fa icon="plus-square"] Select SAP SuccessFactors Managed Payroll

This option addresses the needs of customers who have made a large investment in their SAP Payroll and do not wish to change it. Added in 2016, this model allows customers to make no changes to their system or its processing, with EPI-USE Labs providing managed hosting services.

To move to this model, customers are required to do three things:

  1. Purchase an SAP SuccessFactors Employee Central license; this includes the cloud SLA and a service catalog
  2. Select a Partner from a list of two certified vendors hand-picked by SAP - one of which is EPI-USE Labs
  3. Lift-and-shift or carve out the Payroll from the customer’s server to the EPI-USE Labs’ hosting environment. This is the only piece scoped directly with EPI-USE Labs.

The ideal customers for SAP SuccessFactors Managed Payroll are those with complex time or benefits configuration, bespoke payroll customizations, and lots of payroll history.

[fa icon="plus-square"] Outsource your existing Payroll (via BPO or another vendor)

If the three options above do not meet your needs, you can consider outsourcing your existing Payroll.

Payroll Options Comparison 

[fa icon="plus-square"] SAP SuccessFactors Employee Central Payroll versus SAP SuccessFactors Managed Payroll

1. Cloud Payroll solution hosted by SAP

1. Cloud Payroll solution hosted by EPI-USE Labs

2. Requires purchase of a license for Employee Central and Employee Central Payroll

2. Requires purchase of a license for Employee Central Payroll and also Managed Payroll

3. Requires a standardization and re-implementation of Payroll

3. No standardization or re-implementation of Payroll required

4. Standardized Payroll (reduces Payroll complexity)

4. Allows for complex Payroll

5. Replaces SAP Time with third-party integration solution or requires removal of complex time leveraging  the in development Employee Central Time

5. Keeps SAP Time functionality

6. Replaces SAP Benefits with third-party integration or requires removal of complex benefits processing leveraging  the in development Benefits functionality added to Employee Central (Note: US and Global Benefits offer different functionality )

6. Keeps SAP Benefits solution

7. One vendor for subscription, licences, service and support

7. One vendor for subscription licences, service and support

8. SAP or Partner provide application management, hosting and support services

8. EPI-USE Labs provides application management, hosting and support services, under the SAP SuccessFactors SLA

9. Contract can be on SAP's paper (large organisations) or partner-managed (small and mid-sized organisations)

9. Contract on SAP paper for Managed Payroll. Contract with EPI-USE Labs only for the lift and shift migration part.

10. Combines best of SuccessFactors and third party

10. Combines best of SAP and SAP SuccessFactors solutions


11. Integrates with SuccessFactors Employee Central


Are there cost savings with Managed Payroll?

Are there cost savings with Managed Payroll?

Benefits of Managed Payroll™

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"Current SAP ERP Payroll customers are paying maintenance, infrastructure and application management costs. With the Managed Payroll solution, these costs will now be exchanged for a single license model covering all those costs."

Mary Sidlauskas, SAP Payroll

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