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Compliance & Verification Integrations

Introduction: Why Employment Verification Matters

Each request involves sensitive payroll and employment data—and must be fulfilled with speed, accuracy, and compliance
Manual handling is slow, error-prone, and exposes enterprises to risks: 

Delayed financial approvals for employees
Inaccurate income confirmations
Violations of consent and privacy policies

To address these issues, many organizations turn to Equifax’s Work Number®, a secure, third-party platform for income and employment verification.
And to power it seamlessly, they use direct SAP point-to-point integrations.

 Integration Overview

SAP
Equifax integrations are typically outbound, sending: 

Employee demographic data

Payroll earnings history (gross, net, taxes)

Employment status and dates

W-2 records (year-end)

They also support real-time verification requests, triggered by Equifax under employee consent. 

These integrations must:

Be secure and encrypted 

Handle large volumes of data 

Align with payroll cycles

Log activity for audit and compliance

High-Level Integration Architecture

SAP
Equifax Integration Architecture

 Key Technical Components

Data Sources in SAP

Data Origin: Kronos exports raw IN/OUT punch data (e.g., employee ID, punch type, timestamp, terminal ID). 
Format: CSV or XML with structured fields (employee number, punch date/time, IN/OUT flag). 
Transfer Method: Secure File Transfer Protocol (SFTP) to SAP application server

BIB Configuration in ECC

BC Sets define mappings between EC fields and Infotype structures
Transformation templates apply conditional logic (e.g., map ‘FULLTIME’ → IT0007 Schedule)
Switch framework manages client-specific variations

Middleware (SAP CPI / Boomi)

Routes API responses to SAP ECC
Applies minimal transformations (field renaming, timestamping)
Forwards to BIB-enabled ECC system

 Real-Time Verification Requests

Verification Requests

This can be:

1. Validate employee consent (optional)
2. Extract required data (last X pay periods)
3. Format and encrypt the data
4. Return the result within minutes

  • Automated (preferred) via secure web service 
  • Manual (fallback) via file request + response

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) 

Job Scheduling Strategy

Job

Payroll Export File
Employment Snapshot 
Real-Time Request Service 
Acknowledgment Parser 
Error Monitor 

Frequency

After payroll finalization
Weekly
On-demand
Daily
Hourly

Description

Extract and transmit earnings 
Update active/terminated employees 
API or polling model
Process Equifax status responses
Send alerts for exceptions

Sample Input File from Kronos

Sample Input File from Kronos

Key Infotype & Payroll Data Mapping

Sap Source

Mapped Field

Equifax file Field


IT0002

SSN
IT0001

PLANS

Payroll Cluster RT

/101, /102

Earnings
IT0008

BETRG

Employment Action
IT0000

MASSN
99% 

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)

 Real-Life Use Case: Retail Employer with 20,000+ Staff

Problem:

  • Employment verifications were processed manually by the HR team
  • It took 2–5 business days to respond to requests
  • Employee Filtering: Process only eligible employee types (e.g., exclude interns)

Solution:

  • Implemented a bi-weekly batch integration with Equifax
  • Set up secure file generation post-payroll
  • Enabled real-time pull for on-demand requests via consent

Result:

  • 95% of verification requests handled instantly
  • Zero backlog in HR tickets
  • Full compliance with privacy and data retention policies

Testing Strategy

Pitfall

  • Outdated employee status
  • Incorrect SSN formatting
  • File too large
  • Incomplete wage types
  • Missing encryption

Fix

  • Update IT0000 regularly via HR actions
  • Normalize via regex and field mask
  • Split by region or pay group
  • Cross-check Payroll RT cluster config
  • Always test PGP decryption via test key

Business Outcomes

Metric

Before Integration

After Integration


Manual effort (hours/week)

40+
Verification response time
2–5 days

Compliance exceptions
Frequent

None
Employee satisfaction
Low

High
HR support tickets

High volume
High

Common Pitfalls (and Fixes)

Type

  • File Format Testing
  • Encryption Test
  • Cluster Simulation
  • Negative Scenarios
  • Real-Time Verification

Goal

  • Ensure field alignment and character encoding
  • Validate Equifax decryption
  • Use payroll simulation (PC00_M99_CALC)
  • Missing pay data, SSN mismatches
  • API call simulation and timeout handling

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