Automating Benefits and Payroll Synchronization in SAP HCM
The organization used SAP HCM for payroll and Alight for benefits administration without integration.
Manual reconciliation was needed to align benefits elections with payroll deductions.
Data misalignments raised risks of incorrect coverage, delayed updates, and non-compliance.
Disconnected payroll and benefits systems caused discrepancies between employee deductions and elected plans, leading to payroll errors and increased administrative workload.
Frequent misalignments created compliance risks, financial penalties, and incorrect benefits coverage for employees.
Developing an automated integration to synchronize complex benefits data accurately across multiple plan types, including health, dental, vision, and others.
Developing ABAP-driven outbound interfaces to extract detailed employee data, eligibility information, and plan elections from key Infotypes like 0167, 0376, and 0171.
Structuring outbound files in ANSI X12 or CSV formats to meet Alight’s specific vendor compliance requirements.
Ensuring secure SFTP transmission of outbound and inbound files to maintain data integrity and privacy.
Designing ABAP logic to parse inbound confirmation files with enrollment statuses, dependent verifications, and deduction overrides.
Implementing accurate Infotype updates for synchronized deductions, retroactive adjustments, and eligibility compliance before payroll processing.
Built ABAP interfaces and scheduled secure SFTP transfers to automate 401(k) data exchange with Fidelity. Inbound files were parsed using ABAP logic, and SAP Infotypes 0169 and 0378 were auto-updated to keep payroll data accurate.
Built ABAP programs to extract employee master data, eligibility details, and elections from SAP Infotypes 0167, 0171, and 0376.
Implemented secure SFTP transmissions using ANSI X12 or CSV, tailored to plan-specific vendor requirements.
Designed ABAP logic to parse inbound enrollment confirmations, updating effective dates and verifying dependent information.
Automated SAP Infotype updates with eligibility checks and retro adjustments to align with Alight confirmations.
Seamless synchronization between benefits elections and payroll deductions reduced errors.
Automated validation and updates enabled accurate, real-time plan alignment before payroll runs.
Administrative workload dropped, improving efficiency and ensuring better compliance.
This integration streamlined benefits and payroll processes, ensuring accurate deductions, reducing administrative effort, and minimizing compliance risks.