Time Is Running Out: Your SAP Payroll Crossroads

SAP’s on-premise payroll has been a workhorse for decades. It’s both reliable and familiar, but nothing lasts forever. With Mainstream Maintenance ending in 2027 and Extended Maintenance stretching out only until 2030, payroll teams are at a crossroads.

The payroll world is shifting, and companies that don’t act now risk higher costs, compliance gaps, and last-minute rushed migrations. The question isn’t whether you’ll have to move. It’s whether you’ll do it on your terms, or be forced into a rushed migration when it’s too late. The real risk? Losing control of your payroll roadmap.

The Hidden Risks of Delaying Your SAP Payroll Move

Payroll Expertise Is Running Out—Fast

SAP payroll expertise is not unlimited. As businesses scramble to transition before 2027, demand for top payroll consultants is surging. The majority of SAP on-premise payroll customers are already evaluating cloud payroll options, and demand for SAP payroll experts is expected to outstrip supply by end of year.

Waiting too long means you could struggle to find the right experts for implementation, face longer project timelines due to limited consultant availability or be forced to pay premium prices for last-minute payroll support.

The Longer You Wait, the More You Pay

SAP’s Extended Maintenance fees will rise yearly after 2027, adding unnecessary costs without adding innovation.

“A company running on-premise payroll beyond 2027 could face a minimum 2% increase in support costs over three years—with no added functionality. This isn’t just a cost issue—it’s a lost opportunity to modernize. ”

Michael Brass Senior Solution & Value Advisor, SAP SuccessFactors MEE

Example:

Today: 22% maintenance fee

From January 2028: 24% maintenance fee

Applies to all SAP Business Suite 7 applications and add-ons

Source: SAP Support Pricing Guidelines

Compliance Risks: The Cost of Doing Nothing

After 2030, SAP will no longer deliver payroll compliance updates for on-premise users. That means no more automatic tax updates, regulatory changes, or reporting adjustments.

The consequences:

Non-compliance with tax and labor laws

Increased manual processes

Potential penalties and audit risks

A study by the American Payroll Association found that 82% of companies experience payroll errors annually, adding up to a substantial annual cost.

“Our customers need to future-proof their payroll operations, ensuring long-term compliance and scalability. SAP SuccessFactors Employee Central Payroll offers a modern, cloud-based approach to payroll that eliminates risk while driving efficiency. ”

—René Schumann Chief Product Strategy Manager for Paying, Rewarding and Core Administration at SAP

Your Payroll Migration Options: What SAP Recommends

SAP SuccessFactors Employee Central Payroll (ECP)—Cloud Payroll That Works

SAP’s recommended long-term solution is Employee Central Payroll—the same proven SAP payroll engine, now delivered in the cloud.

Why customers choose ECP:

Fully managed by SAP

Built-in compliance updates

Lower infrastructure and upgrade costs

Real-time analytics via the Payroll Control Center

AI-driven tools like Explain my Payslip

Note: ECP is only available with Employee Central (EC).
Moving to EC + ECP is a transformation, unlocking innovation, scalability, and a modern employee experience.

H4S4 Payroll: A Transition Path (Not Public Cloud)

For customers looking to maintain continuity without a full cloud transformation, H4S4 Payroll is a transitional option.

Deployment models:

On-premise: Available only for existing license holders. No longer offered to new customers.

Private cloud: Offers cloud flexibility with ongoing IT responsibility.

Clarification: H4S4 payroll is not part of SAP’s S/4HANA public cloud offering. The public cloud payroll option remains Employee Central Payroll.

Important note:
ECP is only available with Employee Central. Moving to EC + ECP is a transformation, not just a technical migration. But the long-term value—speed, compliance, innovation—makes the business case clear. Which is the right choice for you? That depends on your payroll complexity, compliance needs, and long-term HR strategy. H4S4 can help you maintain continuity—but doesn’t unlock the full benefits of modern cloud payroll.

Payroll Migration Is Not Just “Lift and Shift”

Many SAP customers assume they can simply “lift and shift” payroll into the cloud. But payroll isn’t just another IT system—it’s the foundation of employee trust. Unlike other systems, payroll transformations touch every part of your business—finance, time, compliance, and employee experience.

Key Questions to Ask Before Moving Payroll

1. Do you have outdated payroll customizations that won’t work in a cloud-based model?

2. Have you evaluated your time management processes (which directly impact payroll)?

3. How will your integrations work in a cloud payroll environment?

4. What’s your long-term payroll and HR transformation plan?

Payroll is about trust. Don’t risk it with shortcuts.

The High Cost of Payroll Errors—Can You Afford to Wait?

Over 40% of payroll professionals cite payroll accuracy as their number-one concern when transitioning to a new system. (Source: Deloitte Payroll Trends Report, 2023) From fines to delays to frustrated employees, the real cost of waiting isn’t measured in maintenance fees—it’s in operational risk.

The SAP Payroll Deadline is FINAL—What’s Your Plan?

SAP is offering multiple payroll options. But there’s no “one-size-fits-all" solution.

• Employee Central Payroll (ECP): Cloud transformation with EC

• H4S4: Transition with continuity (on-prem or private cloud)

• Private Cloud: Hybrid control, partial cloud benefits

But picking a solution isn’t a strategy. You need a migration roadmap and the right partner—before resources run out.

Let’s Map Your Payroll Future—Before the Clock Runs Out

We’re offering a free Two-Hour Payroll Strategy Health Check for SAP customers.

We’ll help you:

• Assess your current payroll setup (countries, complexity, integrations)

• Understand the difference between transition versus transformation

• Identify the right SAP SuccessFactors payroll model for your needs

• Build a custom roadmap for cloud readiness, compliance, and innovation

Let’s future-proof your payroll—before the deadlines make the decisions for you.