Your 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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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.
  • 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.

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.


[fa icon="plus-square"] 1. 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. 

[fa icon="plus-square"] 2. 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 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

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. The ideal customers for Employee Central Payroll are those without any complex time or benefits configuration. SAP explains that if you have complex time and/or benefits, this option is not designed for you.

Employee Central Payroll has proved popular with customers with a simple payroll, or who have net new implementation and not a migration from SAP.

[fa icon="plus-square"] 3. 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
  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 (difference outlined below)

The ideal customers for SAP SuccessFactors Managed Payroll are those with complex time or benefits configuration. 

[fa icon="plus-square"] 4. 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 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, licenses, service and support

6. One vendor for subscription licenses, service and support

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

7. EPI-USE Labs provides application management, hosting and support services

8. Can be on SAP's paper (large organizations) or partner-managed (small and mid-sized organizations)

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

Are there cost savings with Managed Payroll?


Managed Payroll: key benefits

  • 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

Have more questions?  Find some answers in our FAQs section.

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