Final answer:
In the SAP system, payroll processing is handled by the Human Resources module.
Step-by-step explanation:
The module of the SAP system that handles payroll processing is known as the human resources (HR) module. SAP HR module is specifically designed to manage various HR processes within an organization, including payroll, personnel administration, organizational management, and more. Payroll is a complex process that entails the calculation of employee wages, tax withholding, and other deductions, as well as the generation of payroll reports.