Alight Benefits Integration

Automating Benefits and Payroll Synchronization in SAP HCM

For E-commerce Success

Background

Need for Automation

The organization needed a seamless, automated way to exchange employee demographic and contribution data with Fidelity.

Manual Effort Burden

Prior manual data exchange required significant time and effort from payroll teams.

Compliance Risks

Existing processes posed compliance risks and made timely retirement plan updates nearly impossible.

Business Problem

HR and payroll teams lacked a centralized view of employee contributions, employer matches and deductions, leading to errors and confusion

Manual processes caused inconsistent deductions, delays in updates and higher error rates, complicating audits and planning

Manual processes caused inconsistent deductions, delays in updates and higher error rates, complicating audits and planning

For E-commerce Success

Technical Challenges

  • Developing outbound interfaces to extract employee eligibility, enrollment and contribution data from key Infotypes.
  • Structuring outbound files in formats (ANSI X12 or CSV) required by Alight for compliance.
  • Ensuring secure SFTP transmission for both outbound and inbound files to protect sensitive data.
  • Processing inbound confirmation files with updates such as contribution changes, dependent validations and overrides.
  • Automating updates in SAP Infotypes to keep payroll synchronized with benefits systems.
For E-commerce Success

Solution

Built a secure, automated integration between SAP HCM and Fidelity for accurate, real-time benefits data exchange.

Custom Interface Development

Developed customized interfaces to handle outbound and inbound communication according to Fidelity’s compliance standards.

Secure Data
Transfer

Implemented scheduled SFTP transfers for demographic, employment and deduction data aligned with payroll cycles.

Inbound File
Processing

Created parsing logic to process inbound confirmations, including contribution adjustments and error feedback.

SAP Infotype Automation

Enabled automatic Infotype updates in SAP, ensuring payroll remained aligned with Fidelity’s records without manual effort.

Results & Impact

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.

For E-commerce Success

Conclusion

This integration streamlined benefits and payroll processes, ensuring accurate deductions, reducing administrative effort, and minimizing compliance risks.
Successfully automated synchronization between SAP Payroll and Alight benefits systems.
Reduced payroll errors and manual reconciliation through real-time data alignment.
Enhanced compliance and efficiency with accurate, automated Infotype updates.

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