2027 Is Coming Sooner Than Expected: What SAP HCM Customers Need to Know Now About Their Payroll Processing…
For many companies that still use SAP HCM today, important milestones are approaching: Support is guaranteed through the end of 2027, with an option to extend it through 2030.
This means that companies should start thinking now about what their future HR and payroll landscape should look like—and, above all, how to structure the transition.
It is important to understand that:
It’s not just about “replacing” a system. It’s about realigning the entire HR and payroll operation.
What’s Changing Right Now—Explained Simply:
SAP is clearly continuing to develop its HR solutions with a focus on the cloud. As a result, many companies will sooner or later need to consider SAP SuccessFactors.
For those who need more time, SAP HCM for S/4HANA (H4S4) offers a transitional solution. It allows users to continue using familiar functions, but is primarily intended as a bridge—not as a long-term innovation platform.
One point is often underestimated in this context:
Payroll processing does not automatically transfer along with it.
In the target scenario, payroll typically runs through Employee Central Payroll—a standalone solution within the SuccessFactors ecosystem. Employee Central is a prerequisite for this.
Specifically, this means:
Payroll processing must be carefully planned and considered separately.
Why Payroll Processing Requires Special Attention:
For users, payroll processing is one of the most sensitive processes in a company.
• Billing deadlines must be met
• Legal requirements must be met
• Errors have a direct impact on employees
It is precisely during a transformation that a tension arises here:
The system is changing—but operations must continue to run smoothly.
As a result, many companies are asking themselves questions such as:
• How can I ensure that payroll runs smoothly during the transition?
• Who is responsible for which tasks?
• And how can I prevent operational billing from being affected by project-related stress?
What this means for companies in practice…
From the user’s perspective, it quickly becomes clear that:
It’s not just about technology—it’s primarily about operational safety.
In addition to the system migration, companies must simultaneously:
• Reevaluate your payroll structure
• Adapt and integrate processes
• and ensure stable day-to-day operations
The following question is particularly important in this context:
Who will be responsible for payroll in the future?
There is also the general question of payroll processing—should you handle it yourself or bring in a partner like ICS adminservice?
Because it is precisely during periods of transformation that it becomes clear:
The combination of technical change and operational responsibility can quickly become complex.
Our Approach: Keeping Payroll Stable – Shaping Transformation Together
We at ICS adminservice recommend consistently treating payroll accounting as a separate, business-critical area—regardless of what the target technical architecture looks like.
As a specialized BPO service provider, we handle payroll processing for our clients and ensure that it runs smoothly, reliably, and on schedule—even during a transformation.
We make a point of working with trusted partners in the SAP ecosystem, while at the same time being able to integrate seamlessly into our clients’ existing systems and operational models.
For companies, this means:
• If you’re looking to outsource your payroll processing, we’re the right partner for you
• Anyone considering a new system solution should factor in operational payroll right from the start
ICS adminservice GmbH addressed the changes in the SAP environment early on and, together with its partners, developed solutions that take both technical and operational aspects into account.
Why Companies Should Make Decisions Early On
The coming years will be crucial.
Not because of a single system, but because of the impact on processes, organization, and operations.
Our experience at ICS adminservice shows:
Companies that act early can:
• Significantly reduce risks during ongoing operations
• Implement transformation projects with greater ease
• and make informed decisions about their future payroll structure
If you start too late, you’ll quickly find yourself under time pressure—especially in the sensitive area of payroll processing.
Conclusion:
The changes related to SAP HCM affect not only IT—but above all, payroll processing practices.
For companies, this means:
Choosing the right system is important—ensuring payroll is handled correctly is crucial.
At ICS adminservice GmbH, we help companies achieve exactly this level of security:
• with professional payroll processing as a service
• with experience in the SAP environment
• and with a clear focus on stable processes in day-to-day operations
Our advice:
Think through your payroll process from the very beginning—and make a conscious decision about how you want to set it up in the future.
