Integrate Dify with Live Paylocity Data via CData Connect AI

Dify is an open source platform for building production-ready agentic workflows, chatbots, and other LLM applications. It includes built-in, two-way support for the model context protocol (MCP), allowing you to register remote MCP servers as tools in the platform to add external data sources and give your agents access to live data.

By integrating Dify with CData Connect AI through the built-in MCP Server, Dify gains governed, real-time access to live Paylocity data. You can list catalogs, explore schemas, and query records from Paylocity data using natural language prompts, with all data access running securely against authorized sources.

This article explains how to configure Paylocity connectivity in Connect AI, generate the required personal access token, register the Connect AI MCP Server as a tool in Dify, add it to an agent application, and verify the integration by querying live Paylocity data from Dify.

Step 1: Configure Paylocity connectivity for Dify

Connectivity to Paylocity from Dify is made possible through Connect AI's Remote MCP Server. To interact with Paylocity data from Dify, start by creating and configuring a Paylocity connection in Connect AI.

1. Log into Connect AI, click Sources, and then click Add Connection

2. Select Paylocity from the Add Connection panel

3. Enter the necessary authentication properties to connect to Paylocity.

   Set the following to establish a connection to Paylocity:

   • RSAPublicKey: Set this to the RSA Key associated with your Paylocity, if the RSA Encryption is enabled in the Paylocity account.

     This property is required for executing Insert and Update statements, and it is not required if the feature is disabled.

   • UseSandbox: Set to true if you are using sandbox account.
   • CustomFieldsCategory: Set this to the Customfields category. This is required when IncludeCustomFields is set to true. The default value for this property is PayrollAndHR.
   • Key: The AES symmetric key(base 64 encoded) encrypted with the Paylocity Public Key. It is the key used to encrypt the content.

     Paylocity will decrypt the AES key using RSA decryption.
     It is an optional property if the IV value not provided, The driver will generate a key internally.

   • IV: The AES IV (base 64 encoded) used when encrypting the content. It is an optional property if the Key value not provided, The driver will generate an IV internally.

   Connect Using OAuth Authentication

   You must use OAuth to authenticate with Paylocity. OAuth requires the authenticating user to interact with Paylocity using the browser. For more information, refer to the OAuth section in the Help documentation.

   The Pay Entry API

   The Pay Entry API is completely separate from the rest of the Paylocity API. It uses a separate Client ID and Secret, and must be explicitly requested from Paylocity for access to be granted for an account. The Pay Entry API allows you to automatically submit payroll information for individual employees, and little else. Due to the extremely limited nature of what is offered by the Pay Entry API, we have elected not to give it a separate schema, but it may be enabled via the UsePayEntryAPI connection property.

   Please be aware that when setting UsePayEntryAPI to true, you may only use the CreatePayEntryImportBatch & MergePayEntryImportBatchgtable stored procedures, the InputTimeEntry table, and the OAuth stored procedures. Attempts to use other features of the product will result in an error. You must also store your OAuthAccessToken separately, which often means setting a different OAuthSettingsLocation when using this connection property.

4. Click Save & Test
5. Navigate to the Permissions tab and update user-based permissions

Add a Personal Access Token

A Personal Access Token (PAT) is used to authenticate the connection to Connect AI from Dify. It is best practice to create a separate PAT for each integration to maintain granular access control.

1. Click the gear icon () at the top right of the Connect AI app to open Settings
2. On the Settings page, go to the Access Tokens section and click Create PAT
3. Give the PAT a descriptive name and click Create

4. Copy the token when displayed and store it securely. It will not be shown again

With the Paylocity connection configured and a PAT generated, Dify can now connect to Paylocity data through Connect AI.

Step 2: Register the Connect AI MCP Server in Dify

Next, register the Connect AI Remote MCP Server as a tool in Dify so your agents and workflows can discover and call live data tools through Connect AI.

1. Log into Dify, or open your self-hosted Dify instance (version 1.6.0 or later, which includes built-in MCP support)
2. Navigate to the Integrations page, select Tools and click MCP tab

3. Click Add MCP Server (HTTP) and enter the following details:
   • Server URL: https://mcp.cloud.cdata.com/mcp
   • Name Icon: Give a descriptive name, for example, CData Connect AI
   • Server Identifier: A unique identifier, for example, cdata-connect-ai
   • Headers: Add an Authorization header with the value Basic your_base64_encoded_email_PAT

   Note: Dify will use Basic authentication with Connect AI. Combine your Connect AI user email and the PAT you created earlier in the format email:PAT, base64 encode the combined string, and prefix it with Basic.

4. Click Add & Authorize. Dify connects to the Connect AI MCP Server and lists the available tools

With the MCP server registered, the Connect AI tools are available to any agent application or workflow in your Dify workspace.

Step 3: Query live Paylocity data from Dify

With the integration complete, build an agent application in Dify and interact with live Paylocity data through natural language prompts.

1. From the Dify Studio page, click Create from Blank and select Agent as the application type
2. In the agent configuration, click Add under the Tools section and select the Connect AI MCP tools registered in Step 2
3. Select an LLM provider and model for the agent so it can interpret prompts and call MCP tools
4. In the preview panel, type a prompt in the chat input, for example:
   • Use the cdata-connect-ai tools to list all available catalogs
   • Show the available schemas and tables for Paylocity
   • Query the top 5 records from a table in Paylocity
5. The Dify agent calls the Connect AI MCP Server and returns live results from Paylocity data

At this point, Dify communicates with the Connect AI MCP Server and retrieves live Paylocity data through remote MCP tools directly from your agentic workflows.

Get started with CData Connect AI

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