The Net Payroll component of the SAP Payroll system processes taxes, insurance and other deductions for employers and employees during a payroll run.

Net payroll processing is based on wage types entered in SAP HR Master Data as well as wage types that are calculated in the Gross Payroll component. Net Payroll generates a result cluster containing wage types and amounts for all employees in a payroll run. This cluster is the basis for all output from the SAP Payroll System such as statutory reporting.

The Net Payroll is integrated with the other areas in SAP HR, as well as other SAP modules such as Financial Accounting and Controlling.