×

Benefits
Integrations

Introduction: The Cost of Mismatched Benefits

When an employee’s payroll deductions don’t align with their benefit elections, it doesn’t just result in minor errors—it creates a ripple of risk:

Delayed or lost coverage

IRS and HIPAA compliance violations

Backdated payroll adjustments

Loss of employee trust

Payroll readiness checks 

The culprit? Disconnected systems.

SAP HCM is often the system of record for payroll. Vendors like Alight manage benefits enrollment. Without integration, these two systems drift apart—causing deduction mismatches and administrative chaos.

This is where point-to-point SAP integrations shine. 

What Are Benefits Integrations?

These integrations bridge the gap between benefits administration platforms (like Alight) and SAP Payroll, ensuring that:
Enrollments made in Alight are reflected in SAP
Payroll deductions mirror actual benefit coverage
Retroactive changes are automatically handled
HR admins avoid manual adjustments

Why Use Point-to-Point (vs Middleware)

Area

ANSI X12 parsing
Retro deduction handling
SAP Infotype update
Flexibility in file types
Payroll sync alignment

Middleware Approach

Requires 3rd party parser
Difficult
Indirect via IDoc
Moderate
Limited

SAP ABAP P2P Approach

Built in ABAP logic
Handled via Infotype logic
Direct via HR_INFOTYPE_OPERATION
Full (CSV, X12, JSON)
Tightly coupled with control record

 SAP  Alight Integration Architecture

Payroll Integrations – The Heart of SAP Precision

Payroll is the single most critical and risk-sensitive area in any SAP deployment. Integrating third-party systems into your payroll processes—without losing control of retroactivity, wage type generation, and deduction accuracy—requires a level of precision that only SAP-native point-to-point integrations can offer. 

  • In Transit: When data is transferred between servers or to end-users, it is encrypted using secure communication protocols such as Transport Layer Security (TLS) or Secure Socket Layer (SSL). This ensures that data remains protected from interception or eavesdropping during transmission over the internet.
  • At Rest: Cloud providers use advanced encryption algorithms to encrypt data before storing it in their storage systems. Each piece of data is encrypted with a unique encryption key, which is securely managed by the cloud provider.

In this tab, we explore real-world SAP payroll integrations with:
Fidelity (401(k), Roth, Catch-Up)
Equifax (W-2 delivery, income/employment verification)

We dive into Infotype structures, ABAP interface designs, compliance considerations, and how to build integrations aligned with your payroll control record lifecycle. 

What Is Point-to-Point Integration?

At its core, point-to-point integration is the direct, tightly coupled connection between SAP and a third-party system, bypassing generic middleware tools. This method:

1. Reduces latency

2. Improves customization

3. Simplifies error handling

4. Aligns closely with payroll and compliance needs

Rather than sending data into a black box middleware, you're in full control—writing ABAP logic that knows exactly which Info type, PA subtype, or Wage Type to manipulate.

Outbound (SAP → Third Party) 

1. Data Extraction: Use ABAP programs or LSMW tools to pull employee master data, time punches, deduction records, etc. Accessed from Infotypes like 0002, 0167, 0378, 2010, 2011

2. Transformation: ABAP logic maps SAP internal formats to the vendor’s schema (e.g., Fidelity fixed-width layout, Alight’s ANSI X12)

3. File Generation & Encryption: Generated file stored on the SAP application server or NFS path PGP encryption applied if needed

4. Secure Transmission: Transferred via SFTP using command-line tools or SAP’s own connectivity add-ons

5. Audit Logging: All activity logged via custom Z-tables or application logs (SLG1)

Real-Life Implementation Highlights

Metric

Manual HR imports
Data inconsistency incidents
Onboarding time 
Payroll errors due to mismatches 
Maintenance effort 

Before BIB

Weekly
Frequent
2–3 days
8%
High

After BIB

None
Rare
Same day 
<1% 
Low (config-driven) 

Key Infotypes Involved

Key Infotypes for Benefits

Infotype

0167
0376
0171

Purpose

Health Plans (Medical, Dental, Vision)
Savings Plans (HSA, FSA, Disability)
General Benefits Info (Coverage tiers,
Dependents)

How Mapping Works in BIB

  • Field Mapping Tables (V_T77SFEC_BIBF): Defines EC → Infotype field relationships
  • Transformation Templates: Handle conversion logic (e.g., map EC ‘grade’ to SAP ‘job group’)
  • Filters: Set by country, employment type, event reason
  • Switches: To allow client-specific logic branching
  • In Transit: When data is transferred between servers or to end-users, it is encrypted using secure communication protocols such as Transport Layer Security (TLS) or Secure Socket Layer (SSL). This ensures that data remains protected from interception or eavesdropping during transmission over the internet.
  • At Rest: Cloud providers use advanced encryption algorithms to encrypt data before storing it in their storage systems. Each piece of data is encrypted with a unique encryption key, which is securely managed by the cloud provider.

How Mapping Works in BIB

1. Data Extraction: Use ABAP programs or LSMW tools to pull employee master data, time punches, deduction records, etc. Accessed from Infotypes like 0002, 0167, 0378, 2010, 2011

2. TransformField Mapping Tables (V_T77SFEC_BIBF): Defines EC → Infotype field relationships 
Transformation Templates: Handle conversion logic (e.g., map EC ‘grade’ to SAP ‘job group’) 
Filters: Set by country, employment type, event reason 
Switches: To allow client-specific logic branching ation: ABAP logic maps SAP internal formats to the vendor’s schema (e.g., Fidelity fixed-width layout, Alight’s ANSI X12)

 3. File Generation & Encryption: Generated file stored on the SAP application server or NFS path PGP encryption applied if needed

4. Secure Transmission: Transferred via SFTP using command-line tools or SAP’s own connectivity add-ons

5. Audit Logging: All activity logged via custom Z-tables or application logs (SLG1)

Each Infotype stores:

Plan codes
Enrollment dates
Deduction amounts
Carrier information
Retro triggers

Data Exchange Overview

Outbound (SAP → Alight)

Used for: 

  • Initial employee eligibility data
  • Demographics
  • Job class, org assignments
  • Plan eligibility rules

ABAP job pulls data from: 

  • Infotypes: 0002, 0006, 0001, 0007
  • Formats file as per Alight specification
  • Transmits via SFTP, daily or weekly

Inbound (Alight → SAP)

Used for:

  • New plan elections
  • Changes in coverage or dependents
  • Retroactive elections
  • Terminations or corrections

File Types:

  • CSV (simpler plans)
  • ANSI X12 834 (for health/dental/vision)

Parsing ANSI X12 in ABAP

ANSI X12 requires segment-level parsing: 

Segments are parsed using: 

  • SPLIT statements in ABAP
  • Lookup tables to map codes to SAP plan types
  • Z-tables for cross-referencing carriers and deduction codes

 Mapping Plan Elections to SAP

Vendor Plan Code

DENTAL01
VISION02
FSA_PRETAX
STD_EMPLOYEE

SAP Plan Type

Dental PPO
Vision Plan
FSA Account
STD Insurance

Infotype

0167 
0167 
0376 
0376 

Wage Type

/4DB
/4VI
/4FS
/4SD

Mapping is handled via:

Retroactive 
Adjustments

If a benefit enrollment change occurs after the payroll cutoff, SAP must: 

  • Adjust the payroll retroactively
  • Apply correct wage types in the retro period

This is done by:

  • Updating Infotype with BACKPRO flag
  • Triggering retroactive accounting via payroll engine
  • Logging adjustment in payroll cluster (RT table) 

ABAP logic enforces:

  • Date validation
  • Overlapping period checks
  • Deduction override clearance

Real-Life Use Case: Fortune 500 Employer

Issue:
Employees enrolling in Health Savings Account (HSA) after the cutoff faced missed deductions and had to wait for refunds.

Solution

  • Implemented direct integration from Alight
  • Files parsed into Infotype 0376
  • Retro deduction logic added via ABAP
  • Real-time flagging of late elections

Result:

  • Missed deduction errors dropped from 15% to <1%
  • 100% alignment between benefits and payroll
  • Improved compliance and audit outcomes

Compliance Considerations

HIPAA

Health data must be encrypted in transmission 

IRS

Deduction limits for HSA/FSA must be enforced

ACA

Coverage effective dates must match employer mandate thresholds

Auditability

Every plan change logged in SLG1 / ZLOG_BENEFITS

Job Scheduling Recommendations

 Job

Outbound Eligibility File
Inbound Election Processing
Retro Adjustment Recalc
Deduction Reconciliation

Frequency

Weekly
Daily
Payroll cycle end
Monthly

Purpose

Send active employees to Alight
Receive new/changed elections
Ensure deductions apply correctly
Validate payroll vs enrollment

Business Impact

Metric

Manual adjustments per cycle
Retro mismatch errors
Deduction reconciliation time
Audit flag triggers
Employee coverage disputes

Before Integration

140+
Frequent
3 days
Regular
Monthly

After Integration

< 10
Rare
< 4 hours
Clean audits
None

Testing Strategy

Infotype

Unit Testing
Schema Test
Retro Simulation
Reconciliation
Edge Cases

Focus

ABAP parser and Infotype logicANSI X12 file  
validation
Test with past-dated elections
Compare Alight vs SAP deductions
Mid-month terminations, COBRA starts

Have An IDEA WE CAN HELP.

Start YOUR PROJECT

White Arrow

Minneapolis

7760 France Ave South
Suite 1100 Bloomington,
MN 55435

Toronto

2 Robert Speck Parkway
Suite 750 Mississauga,
Ontario L4Z 1H8, Canada

Lahore

Plot C, 272,
Sector FF DHA Phase 4,
Lahore, Punjab