Employee Central Cloud Payroll

Hi,

I have few clarifications on the employee central payroll part explained in the below picture.

Being a total cloud solution(as per the below picture), the master data will be in employee central. I want to know is.. the 'cloud payroll' below indicates an on-premise SAP system or a cloud system?

Also does EC cloud payroll makes use of SAP on-premise payroll or EC cloud PY is a complete standalone system?

All I heard is, master data in EC will be fed to SAP on premise payroll, payroll runs in SAP and data is pushed back to EC. Is it the right way?

Could someone explain in detail about the payroll process-based on a total cloud solution and the hybrid on-premise/cloud solution.

Thanks in advance.

Regards,

Ramesh