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10 Common Payroll Issues That Are Chipping Away at Your Human Capital Management Foundation

In today’s turbulent corporate environment, there is a clear call for stronger Human Capital Management foundations.   To quote the 2008 McKinsey Quarterly — Making Talent a Strategic Priority, “…Human Resources should assert its influence over business strategy and provide credible and proactive counsel and support for chiefs and line managers of individual business units.  Only HR can translate a business strategy into a detailed business management strategy…”   As part of the call for stronger HR foundations, four areas and challenges must be managed properly:


  • Globalization and Industry Consolidation (Multi-cultural capabilities, Mergers and acquisitions, and Compliance with global and local legal requirements)
  • Demographic Changes (Engage multi-generational workforce, Retain skilled employees, and Manage succession in a global workforce)
  • Innovation & Growth (Enable employees to innovate faster and up-skill continuously and Maintain speed of innovation in an aging workforce)
  • Organizational Restructuring (Deploy employees to best-fit positions, Create “what-if” organizational scenarios, and Gain transparency into workforce)


As payroll-related issues play a huge part in most of the aforementioned challenges, let’s discuss what you can do to drive your SAP system’s ROI specifically related to the payroll and year-end payroll reporting.   Below are the top 10 common payroll-related challenges companies are facing today:


  1. Difficulty reconciling year-end tax forms
  2. Wage types not mapped correctly to W-2’s
  3. Unable to issue corrected W-2’s
  4. Tax Forms will not print
  5. Difficulty generating XML files required for tax form filing
  6. You have new technical support staff who are not familiar with the technical set up required for the successful filing of year end forms
  7. You receive error or informational messages when generating tax forms and are uncertain of the meaning
  8. Difficulty updating year-end adjustments with and without tax calculations
  9. Some of your year-end adjustments are not reflected on the tax form
  10. Some employees are not picked up when you try to produce certain tax forms


Drive Your SAP Human Capital Management ROI – Manage Year-End SAP Payroll Reporting


If you answered “Yes” to any of the items above, you are not alone.  To help guide you through these “roadblocks”, SAP Education is offering a training course designed to put you back on the road headed towards improved ROI.   SAP Education’s 2-day HR710 – U.S. Tax Reporter 2010 course was created for individuals responsible for the reconciliation and filing of year end tax forms; payroll staff new to payroll year end; technical support staff responsible for trouble-shooting configuration; Payroll Managers/Supervisors not familiar with SAP Payroll year end configuration; and payroll staff who have completed a payroll year end but would like to review the entire process to ensure this year end goes smoothly.  For our friends in Canada, the 2-day HR707 – Canadian Year-End Reporting course was created with a similar purpose.


To provide you with utmost scheduling flexibility, HR710 can be taken in our instructor-led classroom and virtual environments as well as privately as a customer onsite class.  To drive your SAP Human Capital Management ROI, HR710 has been developed to provide mission-critical information about the year-end payroll reporting issues and content including:


  • Configuration of FEINs
  • Production of W-2’s, W-2c’s, and other annual/quarterly reports
  • Defining address subtypes for form printing and distribution
  • Mapping of customer wage types to appropriate year end forms
  • Management of year end adjustments
  • Organization of year end and new year activities
  • Defining magnetic media file path
  • Defining relevant data for tax reporting and configure year-end reporting process
  • Updating payroll history and posting to financial accounting
  • Payroll Reconciliation report
  • Reconciliation of year end payroll and year end adjustments
  • Cross-year calculations and remittances
  • Organization of year end and new year activities
  • Compilation and storage of year end submission files using magnetic media


For more information about this or other North American SAP Human Capital Management courses, please visit our SAP Human Capital Management training page.

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  • We normally attend the EPI-USE Year-end workshop but it is not occuring this year so we were looking for this class or WUSTAX. The only way we found it was via your blog. Something must be going on with the SAP Education search because I used HR710, Tax Reporter, Tax, workshop, WUSTAX, and other criteria to search for it to no avail.

    Anyway, thank you for the information and we will now consider signing up for the class!

    Mark Musser
    Principal BSA
    County of Sacramento