Introducing SAP Payroll


After completing this lesson, you will be able to:

  • Explain elements and components of SAP Payroll

SAP Payroll

SAP Payroll Processing

With SAP payroll processing, you can run your payroll processing to the needs of your company and to be compliant to country-specific laws.

Press Play on the video below to learn the basic benefits and features of SAP Payroll Processing.

Employee Wages

An employee’s wage is made up of their salary elements, with statutory and voluntary deductions applied at a country-specific level, to come up with the total gross pay. Salary elements, statutory deductions, and voluntary deductions are based on individual payments, and deductions that are calculated for an employee during a payroll period. The payments and deductions are stored as wage types and then included in the payroll calculation.


We are discussing global elements in a standard system. Country-specific topics are covered in other SAP Payroll classes.

Select all the information (i) markers below to learn more about the elements of an employee’s wage.

Parts of a salary

The wage types can be entered online or generated during the payroll run.

These payroll elements come from employee master data in the system. To be paid correctly, this data must be correct. In the next unit, we’ll look at this data to ensure you understand what drives the payroll process.

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