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SHP 3423 HUMAN RESOURCES INFORMATION SYSTEM
SEMESTER II SESSION 2010/2011
TOPIC: PAYROLL SYSTEM
GROUP MEMBERS NAMES AND MATRIX NO:
1. MOHD NASRUN FISDAUS BIN AZMI SX085778HRD04
2. OTHMAN BIN MOHD SAID SX091141HRJ04
3. NORMALA BINTI ABU HASSAN SX091061HRJ04
4. MOHD SYAIFULLAH BIN JAMALUDIN SX091117HRJ04
5. ZURATUL JANNAH BINTI ZUHAIRON SX091163HRJ04
6. SHARIL IZWAN BIN LEMAN SX091145HRJ04
7. RUWAIDIYYAH BINTI MD. NOR SX091143HRJ04
Item Full Marks Student
Marks Comments
Introduction
Components and Functional Area
Activities summary
Clarify of information
Format
Implications
Presentation
Total
Lecture Signature:
Date:
Overalls Remarks:
HUMAN RESOURCES INFORMATION SYSTEM
-PAYROLL SYSTEM-
PREPARED FOR: DR. NUR NAHA BT ABU MANSOR
SEMESTER II ACADEMIC SESSION 2010/2011
SHS3423 HUMAN RESOURCES INFORMATION SYSTEM
FACULTY OF MANAGEMENT & HUMAN RESOURCE DEVELOPMENT
UNIVERSITI TEKNOLOGI MALAYSIA
APRIL 2011
DEDICATION
This Assignment Is From Our Group Paper Work
Especially Dedicated To Dr. Nur Naha Abu Mansor
Human Resources Information System
UTMspace
APPRECIATION
Assalamualaikum w.b.t.
Praise to Allah S.W.T in finally, we have finished completed this group assignment with
executed smoothly.
Special appreciation to Dr. Nur Naha Bte Abu Mansor as lecturer for this course SHS3423
Human Resource Information System for helping us with the guidance and consults how to
complete this assignment in perfect way.
Thank you to all the parties involved either directly or indirectly in the preparation of the
report which was carried out. Contribute ideas and reference materials are very helpful
in producing a good paper work and properly report.
Thanks to classmates for their support and assistance
Salam 1 Malaysia
Best Regard
GROUP MEMBERS PARTICULAR
TEAMWORK GROUP MEMBERS
FROM LEFT NASRUN, ZURA, NORMALA, DIYA, OTHMAN & SYAIFUL
NO. NAME MATRIX NO.
1. MOHD NASRUN FIRDAUS BIN AZMI SX085778HRD04
2. HJ. OTHMAN BIN MOHD SAID SX091141HRJ04
3. NORMALA BTE ABU HASSAN SX091061HRJ04
4. MUHAMMAD SYAIFULLAH BIN JAMALUDIN SX091117HRJ04
5. RUWAIDIYYAH BTE MD. NOR SX091143HRJ04
6. ZURATUL JANNAH BTE ZUHAIRON SX091163HRJ04
7. SHARIL IZWAN BIN LEMAN SX091145HRJ04
ABSTRACT
Payroll system is a very important and it need to be addressed by the organization.
Through the efficient payroll system, the organization can serve the wage plans by hours or
monthly, incentive plans, deduction of tax, loan or zakat and etc. With the application
of payroll systems the organization will be able to effectively manage the human resource
needs very well. In recent of years the managing cost payment of salaries and
allowances have been increased. The management of organization need to accept the changes
of technology by using Human Resource Information System to facilitate the administration
of human resource management within the organization. This paper work will explain how to
implementing the payroll system, what the payroll system benefits and implications the
payroll system to the management.
CONTENTS IN BRIEF
TOPICS PAGES
DEDICATION
APPRECIATION
GROUP MEMBERS PARTICULAR
ABSTRACT
CONTENT IN BRIEF
CHAPTER 1 PRELIMINARY
1.1 Introductions
1.2 Payroll System Definition
1.3 Payroll System Benefits
1.3.1 Cost Effective
1.3.2 Flexible
1.3.3 Accurate
1.3.4 Data Security
1.3.5 Increase Productivity
1.3.6 Easily Accessible
CHAPTER 2 PAYROLL SYSTEM
2.1 Implementing The Payroll System
2.2 Advantages
2.2.1 Allows Timekeeping
2.2.2 Enables Payroll Processing
2.2.3 Coordinates Departments
2.2.4 Meets Compliance Criteria
2.3 Disadvantages
2.3.1 In-House Computerized System
2.3.2 Out Of Office
2.3.3 Internet Provider Down
2.3.4 Retraining Employees
2.3.3 Possible Set up Costs
2.4 Payroll System Management
CHAPTER 3 PAYROLL SYSTEM COMPONENTS
3.1 Payroll System Applications
3.2 Payroll System Functions
3.2.1 Input, Processing And Output
3.2.2 Payrolls System Feedback
3.3 Payroll Advance System
3.3.1 E-Payroll System
3.3.2 Web Base Payroll Service
3.4 Globalizing Payroll System
3.4.1 Multinational Payroll System Model
3.4.2 Global Payroll System Model
3.4.3 International Payroll System Model
3.4.4 Transnational Payroll System Model
CHAPTER 4 INVOLUCRES
4.1 Implications Payroll System To The Management
4.2 Traditional Payroll System
4.3 Conventional Payroll System
4.4 Suggestions
4.5 Critical Analyses
4.6 Conclusion
CHAPTER 5 JOURNAL ARTICLE
Enhancing Staff Payment Systems At Hughes Supply
By Jay Romans, Caryl Lucarelli and Lindsay Graham
CHAPTER 6 STUDENT PERSONAL REFLECTIONS
6.1 Mohd Nasrun Firdaus Bin Azmi
6.2 Hj. Othman Bin Mohd Said
6.3 Normala Bte Abu Hassan
6.4 Muhammad Syaifullah Bin Jamaludin
6.5 Ruwaidiyyah Bte Md. Nor
6.6 Zuratul Jannah Bte Zuhairon
6.7 Sharil Izwan Bin Leman
BIBLIOGRAPHY
CHAPTER 1
PRELIMINARY
1.1 Introductions
The payroll system enables the employer to process its payroll through a
computerized system. A manual payroll system requires that the payroll be processed by hand
and is therefore a considerably slower procedure than using payroll system. The former
makes payroll processing simpler, and reduces errors, which are more likely with the manual
system.
Hourly workers are paid according to hours worked during the pay period. The
employer uses a time-keeping system to track hours and pay hourly employees accordingly. It
is critical, therefore, that each employee’s time is computed accurately. Many employers use
a time clock to track work hours. A manual payroll system requires computing the time clock
data by hand; this increases the likelihood of mistakes. The automated time-keeping system
allows the employer to import time clock data into payroll software. Specifically, the
employee uses a swipe card or badge, or the hands print or fingerprint method, to clock in
and out. Once the entries are transported into the payroll software, the software computes the
time worked. All the payroll staff member has to do is ensure the time is transported
appropriately and make the necessary edits.
The payroll system uses payroll software to computer all wages. Payroll software,
such as QuickBooks, PenSoft, Z-Pay, Ultipro and Sage Peachtree calculate gross-to-net
earnings based on the data the payroll representative inputs. Therefore, the result depends on
the accuracy of the input. Thus, if a terminated employee is due severance pay but the payroll
representative neglects to make the entry, the system will not pay it. Typically, the system is
reliable so long as the entries are correct. The automated system performs all types of
payments: hourly, overtime, double-time, salaries, commissions, bonuses, pay raises,
retroactive pay, wage deductions, auto payments and tuition reimbursements. Notably, the
automated system eliminates manual pay check writing. The system automatically generates
pay checks and stubs and enables direct deposit.
Salary and wage deductions are a necessary part of payroll processing. The employer
must take mandatory withholding from employee pay checks, including income tax, loan
payment, insurance and zakat. These taxes can be time-consuming and perplexing to compute
manually. A number of rules are attached to withholding tax calculations. With an automated
payroll system, the software has the tax rates hard-coded in the system. It calculates the
withholding tax for each employee based on the withholding conditions data input. This
reduces the likelihood of payroll tax errors.
1.2 Payroll System Definition
Payroll is the means by which a company pays its employees for services rendered.
The most common payroll frequencies are once per month or twice per month. The manual
payroll system typically serves small business well. Employers with up to 10 employees tend
to go with this system. It is inexpensive to set up however it results in longer payroll
processing and is prone to making errors. Wages, taxes and accounting information must be
documented, and checks must be printed. All this is done by hand with a manual payroll
system.
A company with up to 50 employees can benefit from a computerized in-house
payroll system. Once an employer invests in one, he has a program that will do his
calculations for him. Still, he must enter the information. The system pays the employee
based on his input. The time involved in this type of payroll processing is less than with a
manual system, but he must ensure his calculations and records are correct.
A payroll system is the method used by payroll professionals to pay employees for
their services. Regardless of the type of system used, there are basic functions that must be
performed calculation of salary, allowance, incentive and mileage or deduction of tax, loan
payment and zakat.
1.3 Payroll System Benefits
Diagrams 1.1 Payroll System Benefits
The payroll system created was base on the growing number of employees in an
organization whereby no longer suitable done manually. It is time consume and human error
is unavoidable. However, every system created it does produce benefits to the employees and
organization as a whole. The benefits are more of enhancing employee payment system.
1.3.1 Cost Effective
It saves cost on printing/ writing pay check and it distribution. When authorized
signatures were not around to the check, then the delay was costly, expensive and
cumbersome.
1.3.2 Flexible
The new payroll system was convenience and peace of mind when come to
their pay. For sure late payment and out of control can be overcome. For new
employee, who join the organization on the middle of the month will still get his or
her pay on time. The flexibility on the payroll auto system makes it possible for the
pay to be credited into the bank account on time.
1.3.3 Accurate
All employees are to enjoy prompt payment convenience and peace of mind
when come to their pay. All types of payments such as over time, EPF payment,
income tax, salary adjustment and etceteras. All the date are key in into the system
before the cut off date for payment and the claim money and payments to various
agencies will appear in their pay slip. The purpose of electronic payroll system is the
accessibility to all employees and they can key in the data themselves.
1.3.4 Data Security
The payroll department will then have the supervisors checking every data key
in are accurate and are according to their entitlement. Thus every part of the payroll
payment process check and balance will be there to ensure safety.
1.3.5 Increase Productivity
The rapid growth of the company in the recent years had stretched manual
payroll system and any other types of payment to various customers, suppliers to the
breaking point. If so the payment was late, delay and etceteras, the supply of goods
will be distorted and so the production line. But if all the payment make are in time
then production will increase accordingly with the regular supply.
1.3.6 Easily Accessible
The main purpose of the payroll system is the accessible to all levels
employees. Interested employees were asked to select one of the options available that
suit them. There must be a compelling purpose behind the new system. The main
objective was to ensure that every employee received their pay on schedule date.
Accessibility makes them more convenience and effective in making claims from the
company. The employees are allowed to key in into the system with the given
password at any time of the day during the authorized period.
CHAPTER 2
PAYROLL SYSTEM
2.1 Implementing Payroll System
Employers are responsible for paying their workers correctly and on time. To simplify
the payroll process, the employer needs a payroll system. A payroll system streamlines the
payroll aspect of the business. Without one, it is difficult to track and pay employees' time
and to adhere to the changing payroll and tax set by the government. When implementing a
payroll system, the employer must perform eight steps:-
1st
Step
Determine the type of payroll system you want to establish. The payroll
system you choose should be based on the size of your business and how much
payroll responsibility you would like to maintain. The three main payroll systems are
manual, computerized in-house and external.
2nd
Step
Use a manual payroll if you are comfortable doing your payroll by hand. If
you have only a few employees, this system may work for you. But keep in mind that
all wages and taxes are computed manually, which can result in payroll errors.
3rd
Step
Purchase payroll software and hire a payroll staff. Depending on the size of
your company, you can hire one payroll person and buy affordable payroll software,
such as Quick pays, or you can hire a full payroll staff and purchase a more expensive
in-house computerized system, such as Ultimate Software. Unlike a manual payroll
system, a computerized in-house payroll system saves on time and gives you access to
an onsite payroll staff.
4th
Step
Use an external payroll system if you do not want to be bothered with payroll
at all. The external payroll system is an increasingly popular method, which includes
outsourcing all of your payroll duties, including taxes and benefits administration, to a
payroll service. For a small fee, the payroll service handles the entire payroll
processing, eliminating the need to pay salaries and benefits to a payroll staff.
5th
Step
Establish a pay date. Pay frequencies are up to you; however, weekly and
biweekly are most common for hourly workers, and biweekly and semi-monthly are
most common for salaried workers.
6th
Step
Decide on a time-keeping method, such as a time clock. According to the
Department of Labour, an employer can use whichever time-keeping strategy he
chooses as long as it correct and complete.
7th
Step
Train the payroll staff on the payroll system, if necessary. If you have a more
complicated in-house system, such as Ultimate Software, consider hiring specialists to
train the payroll staff. Have the payroll department do a mock payroll before running
the first payroll. A test run will pinpoint any system glitches. Address issues before
the time for doing the actual payroll arrives.
8th
Step
Ensure your payroll department and your finance department are working
together, if applicable. Some payroll personnel are responsible for wage reporting and
tax matters. However, some companies have a finance department that handles tax
issues and payroll accounting. If so, ensure the two departments are properly
streamlined.
2.2 Advantages
For employees to get paid, the employer must have a payroll system in place. The
type of system is up to the employer and should be based on his needs. He may use a manual,
in-house computerized or external (outsourced) payroll system. The advantages by using the
payroll system:-
2.2.1 Allows Timekeeping
Generally, salaried employees do not punch time clocks because they are paid
a firm wage each pay period. Therefore, employers often do not track salaried
employees' time. Hourly workers are paid based on hours worked and may qualify for
overtime pay. Consequently, the employer must enforce a timekeeping system, which
allows him to monitor hourly employees' time and pay them accordingly. The
employer can use the timekeeping system of his choice as long as it is correct and
complete. A payroll system allows the employer to incorporate a timekeeping system,
which ensures that employees are paid according to their hours worked.
2.2.2 Enables Payroll Processing
A payroll system allows the employer to perform the tasks necessary to ensure
accurate and timely pay checks. Payroll processing duties include coding and paying
employee hours. For instance, if an employee takes others incentive or personal hours,
the hours should be coded and paid as such. Payroll processing may also include
direct deposit, payroll taxes and benefits processing. Depending on the system used,
tasks may vary. Manual payroll processing may include manually calculating time
sheets and printing employees' pay checks on a typewriter. In-house computerized
payroll processing may include an on-site payroll staff and using payroll software to
process the payroll. External payroll processing includes entrusting the payroll to a
payroll service provider; the employer ensures the latter receives the necessary data to
process the payroll.
2.2.3 Coordinates Departments
If the company has an accounting department and/or a human resources
department, the payroll department usually has to work closely with these sub-
divisions. For instance, accounting may handle payroll reconciliation, and human
resources may handle benefits administration. Through the payroll system the
employer creates procedures that coordinate the payroll department with these other
departments. For example, for each pay period, the payroll department forwards the
necessary reports to accounting for reconciliation. In addition, it assists human
resources with tracking employee's benefit days, such as vacation time, personal time
and sick time.
2.2.4 Meets Compliance Criteria
Payroll tax law are ever changing and can be quite complex. The employer
must withhold federal, state (if applicable) and FICA taxes from employees' pay
checks. Plus, he is responsible for his own portion of taxes. Furthermore, the DOL
notes that employers must maintain payroll records for a minimum of three years. A
payroll system allows the employer to structure his payroll so he complies with
payroll tax laws and meets record-keeping requirements. For instance, if he uses the
external payroll system, he may give the payroll provider "Power of Attorney" to
handle the company's payroll tax matters.
2.3 Disadvantages
Employers have to ensure their employees and taxes are paid in an accurate and timely
manner. Consequently, they use a payroll system that best suits their needs. Although payroll systems
can provide payroll services that are advantageous to the employer and his employees, they also have
disadvantages
2.3.1 In-House Computerized System
An in-house computerized payroll system is equally as popular as an
outsourced system. The employer simply purchases the payroll software and hires an
in-house payroll staff to do the payroll processing. The disadvantages of this system
include the employer having to pay salary and benefits to his payroll staff, as opposed
to paying a small fee to outsource his payroll. The in-house computerized payroll
staffs generally have additional tasks such as quarterly and annual income tax, direct
deposits and payroll database maintenance. When glitches in the system occur, the
payroll staffs have to work overtime to help solve the problem, which can be costly to
the employer. The stress level on the payroll staff can be considerable when payroll
issues occur. Employees can approach the payroll person directly as opposed to
having to rely on their superior to contact the off-site payroll supplier.
2.3.2 Out Of Office
The major disadvantage of using the online payroll system is your services are
provided by an outsourcing company and you do not have direct control over the
function of your payroll. It is out of your business and you must have complete trust
and confidence in your payroll system in order to have peace of mind.
2.3.3 Internet Provider Down
Using an online payroll system required you to reply on the internet for all of
your data transfers and communication. If your internet service is down, your
information transfer is inhibited. This is a major disadvantage when computing online
services to in house processing where data entry and information access is never a
problem.
2.3.4 Retraining Employees
Staff payroll will need to be retrained on the new system is elect to use an
online payroll system. This can only be time consuming but also expensive. Would
not be necessary if we continued using current payroll system.
2.3.3 Possible Set up Costs
We will face with some type set up cost for a new computer system. These
costs can be avoided if we maintain with the current payroll system.
2.4 Payroll System Management
Diagram 2.1 Payroll Management System Flow Chart
Step 1 of 4
From SELECT PERIOD, choose the current payroll processing Period. For example,
end month of March 2011.
Step 2 of 4
From EMPLOYEE MASTER, update employees' personal particulars. For example,
salary increments, new fixed allowances or fixed deductions, increment date,
resignation date, change of EPF or taxation, etc.
You need to update EMPLOYEE MASTER only when :
There are new employees being hired
Changes in employees’ salary (eg. increment/decrement)
Changes of fix allowances or deductions
Changes of salary computation method for the employees (eg. EPF groups)
Finally, if there are changes in employees’ personal particulars
Step 3 of 4
Then, execute PROCESS PERIOD. Process Period will transfer basic salary and fixed
allowances and fixed deductions into SALARY ENTRY. You only need to execute
this function once. Then, you may proceed to update individual employees' salary for
the month in SALARY ENTRY.
Step 4 of 4
From SALARY ENTRY, proceed to enter employees' overtime hours, unpaid leaves,
annual leave taken, commissions, claims, etc. When SAVE button is selected, the
payroll system will immediately calculates EPF, SOCSO, PCB and Nett salary and
stores the ACTUAL salary for the month.
NOTE: Before proceeding to print reports, ensure all salary items in the SALARY
ENTRY module are correct. All report figures are retrieved directly from
SALARY ENTRY module.
CHAPTER 3
PAYROLL SYSTEM COMPONENTS
3.1 Payroll System Applications
Payroll system is a standalone window based applications. It provides a wide array of
functionalities, from registering or managing basic information on companies and employees
to salary processing, bonus processing and up to year-end adjustment for employees.
Payroll system applications empowers to:-
∞ Manage employee information efficiently
∞ Define the emoluments, deductions, leave, tax etc
∞ Create own salary structure and formulae
∞ Generate Pay-Slip at the convenience of mouse click
∞ Generate and manage the payroll processes according to salary
structure assigned to the employee
∞ Generate all the reports related to the branch, department or employee
∞ Manage own security.
3.2 Payroll System Functions
Payroll system includes the management process of employees' salary and other
deductions, overtime allowances, the remuneration of contractual employees, the payment
arrears of salaries and so forth. Payroll system also helps organizations to manage and
produce monthly salary payment system for all employees. This function also includes the
production system of salary payments, bonus payments and others.
3.2.1 Input, Processing And Output
Diagram 3.1 Payroll System Method
An information system is typically considered to be a set of interrelated
elements or components that collect (input), manipulate (process) and disseminate
(output) data and information and provide a feedback mechanism to meet an
objective. These are the basic functions of a computer system. Nowadays most of the
payroll system has using this model. Data must be feed into the computer (input),
which is then analyzed and reorganized (process), and then it is displayed or printed
(output).
Diagram 3.2 Payroll System Component Functions
Input
Diagram 3.3 Example Of Data Input
In Information System fundamentals, input is the activity of gathering
and capturing raw data. In producing pay checks, for example, the number of
hours every employee worked must be collected before pay checks can be
calculated or printed. Input can take many forms. In an information system
designed to produce pay checks, employee time cards might be the initial
input. Input can be a manual process or it may be automated. Regardless of
the input method, accurate input is critical to achieve the desired output.
Process
Diagram 3.4 Example Of Data Processing
In information systems, processing involves converting or
transforming data into useful outputs. Processing can involve making
calculations, making comparisons and taking alternative actions, and sorting
data for future use. Processing can be done manually or with the assistance of
computers. In payroll, the number of hours each employee worked must be
converted into net pay. The required processing can first involve multiplying
the number of hours worked are greater than 40hours, overtime pay may also
be determined. Then deductions are subtracted from gross pay to get net pay.
For instance, federal and state taxes can be withheld or subtracted from gross
pay; many employees have health and life insurance, savings plans and other
deductions that must also be subtracted from gross pay to arrive at net pay.
Output
Diagram 3.5 Example Of Data Output
In information systems, output involves producing useful information,
usually in the form of documents and reports. Outputs can include pay checks
for employees, reports for managers and information supplied to stockholders,
banks government agencies, and other groups. In some cases, output from one
system can become an input for another. For example, output from a system
that processes sales orders can be used as an input to control other systems or
devices. Output can be produced in a variety of ways. For a computer,
monitors and printers are common output devices. Output can also be a
manual process involving handwritten reports and documents.
3.2.2 Payrolls System Feedback
Diagram 3.5 Example of Complete Payslip Printed
In information systems, feedback is output that is used to make changes to
input or processing activities. For example, errors or problems might make it
necessary to correct input data or change a process. Consider a payroll example.
Perhaps the number of hours an employee worked was entered into a computer as 400
hours instead of 40 hours. Most information systems check to make sure that data
falls within certain predetermined ranges. For number of hours worked m the range
might be from 0 to 100 hours. It is unlikely that an employee would work more than
100 hours for any given week. In this case, the information system would determine
that 400hours a week is out of range and provide feedback such as an error report.
The feedback is used to check and correct the input on the number of hours worked to
40.
If undetected, this error would result in a high net pay printed on the pay
check. In some information systems of course the most ideal thing to do is to install
an algorithm that would prompt the user if the predefined range was breached. This
algorithm could be in a form of an error message done through error trapping during
the development stage of the information system. As a conclusion, manual processes
can just as easily sort data into meaningful records. However, automation can greatly
enhance the ease at which this can be accomplished with accuracy.
3.3 Payroll Advance System
Nowadays payroll advance system is the most popular by the organisation. No
wonder it was a big or small company they will use payroll advance system to
competent their salary management and its concept was paper less. For this sub topic
our group will describe for two method payroll advance that is E-Payroll System and
Web Base Payroll System.
3.3.1 E-Payroll System
E-Payroll is leading online Payroll solutions provider, giving small to medium
businesses a payroll platform that saves time and money and increases efficiencies
across your business. Now if you think that sounds good, what’s even better is that all
your business Payroll information and reporting is safely stored in one place and is
accessible online, anytime. In today’s business environment, it has become
increasingly imperative for small businesses to be more transparent. That’s why E-
Payroll not only provides transparency, but is easy to use and comes with an online
set-up wizard.
E-payroll models automatically collect data regarding employee attendance
and work record for the purpose of evaluating work performance, they calculate
various deductions including tax, and generate periodic pay cheques and tax reports.
Payroll modules in turn send data and accounting information to the general ledger for
posting and subsequent operations and they frequently integrate e-payroll with e-
finance management. E-payroll is able to process from data, simultaneously, fully
reconciled results and multiple employee groups. By preparing paperless online pay
slips, the system is able to reduce administrative costs and time for the total
operations. Employees too can view their exclusive data and get personalized reports.
User can create and set-up your own business Payroll online, giving your staff
access to their payment details, pay slips, superannuation, annual leave entitlements
personal leave and more. Gone are the days where you need to print and distribute
payslips and leave forms. Imagine the time and paperwork you will save.
Diagram 3.6 E-Payroll System Online Concept
Features of E-Payroll include:-
Employee self-service (ESS)
On-demand reporting
Online leave management
GL integration
Salary packaging
Automated superannuation payments
Roistering
Timesheets
Accurate Reporting
Not only is E-Payroll equipped with full compliance and constantly updated
with changes in legislation, it is also supported with a knowledgeable and experienced
support team.
3.3.2 Web Base Payroll Service
This program will allow for complete automation of the payroll systems of a
company. Users will be able to clock in and clock out from a simple web browser.
User Clock in and Clock out can be controlled by specifying specific IP addresses
from which the latter can clock in and out for work. Users will be able to view and
print reports about their hours worked and work done during any period of time.
Administrators will have web based control panels to completely customize the
payroll systems. There will be tools like controlling access by IP address, generating
payroll reports, edit employee timesheets, manage projects, getting payroll statistics
and many other features.
Many employers across the country have changed over to web based payroll
systems. The convenience alone brings time efficiency to a whole new level. A Las
Vegas web based payroll system in Nevada is designed to handle any specific tasks
critical to employers needs. Many employers there love the idea that they can finish
their payroll in just a few clicks. Web based payroll systems are not only popular in
Las Vegas, Nevada. Cities such as Tucson and Phoenix, Arizona have switched from
the tedium of hours of manual payroll to doing their employee’s payroll online.
Both the Phoenix web based payroll system and the Tucson web based payroll
system have become extremely popular. Since these two cities are slotted in the top
ten fastest growing populations in the southwest United States, productivity and time
efficiency have become critical to businesses. As these cities grow, so do the numbers
of employees. Having a payroll system that does most of the work and takes just a
few clicks of the mouse makes time for payroll keepers to handle other duties.
An Arizona web based payroll system, like those in other states, brings the
technology of the internet into your home office as well. Web based payroll systems
are for small to medium size companies too. As your business grows and you hire
more employees, you can simply enter their hourly rate and any other pertinent data
and the web based payroll system does the rest. Online or web based payroll systems
simply makes your life easier and opens you up to take care of other business details.
No more missed calls, meetings or appointments from potential and very profitable
new contracts or clients. Leave the payroll to a payroll service or a PEO, you won’t be
sorry. Time is money as they say. Most Web-based Human Resources Management
systems offer more than HR and employee benefits administration services such as
payroll, talent management, applicant tracking, recruiting tools, pre-employment
testing, background checks, labour law resources and skills training.
Also it is equally as important to choose a Web-based Human Resources
Management system that is easy to use. Selecting a solution with an interface that is
difficult to access and navigate can discourage employees from embracing the service.
Be sure to select a user-friendly option to encourage employee participation.
Regardless of your industry or business size, a Web-based Human Resources
Management/payroll system can help your company achieve productivity while
staying within the company budget. By choosing a Web-based Human Resources
Management system and making these simple, but valuable changes, employers can
turn a basic HR practice into a highly efficient and responsive process that benefits
employees, organizations and the environment.
3.4 Globalizing Payroll System
We live in an age of globalisations with organisations increasingly reviewing their
global options for shared services and outsourcing. This whitepaper will focus on the
globalisation of Payroll and recommend a solution that clients seeking globalisation should
follow. Payroll is the underestimated function that sits between HR and Finance. In
organisations that operate in numerous countries, the Payroll function can look very different
from country to country, and certainly when comparing that function to the same function in
other organisations.
Payroll is often an after-thought for executives. However, this can be a complex area
for which the effort in structuring and the benefits in getting “the right” structure can be
significant. The considerations for global organisations with regards to centralisation v
decentralisation can be summarised into people, process, and technology:
People Perspective:
A number of countries will each have less than a handful of staff handling the payroll
processing, and given the statutory and organisational risk in any changes to the
payroll sub function, it is always a temptation to leave things as they are! Whilst for
larger countries with sizeable payroll functions, it may be cost effective to migrate to
a low cost location, for smaller countries this may not be economical.
Process Perspective:
Each country will have the same outcome for Payroll, as each aims to achieve the
delivery of payslips and payments to the employees in the company. However, there
will be a number of different ways to achieve this outcome due to the legal and
statutory requirements, as well as due to the evolution of the function in Payroll.
When looking to globalise Payroll, the local requirements and the language
dependencies need to be balanced with the benefit of centralisation.
Technology:
Global organisations have a huge number of payroll systems that support the process.
This can be due to inconsistencies with utilising a standard internal payroll solution,
local decisions made without considering the global organisation, or because of a host
of different outsourced solutions are utilised across countries. Either way, the decision
on centralising or otherwise has tremendous technology implications. The most
important decision lies on which payroll application to select: one multi currency
system or a number of systems customised for local requirements. The initial
technology landscape and the journey towards the future model is an essential
consideration and can impact significantly on the time frames of globalisation.
3.4.1 Multinational Payroll System Model
Multinational payroll system model was take a responsive approach to
implementing and managing the payroll system by comprises the system of separately
lineated by national boundaries. It was an independent system and only localized by
the organisation. Multinational payroll systems systematically are:-
Capabilities : - Decentralized and self-sufficient.
Operations : - Seeking and exploiting local opportunities.
Management : - Subsidiaries comprise a payroll system by independent.
Knowledge : - Developed and retained within each unit.
Control : - Personal and informal (Simple financial controls)
3.4.2 Global Payroll System Model
Global payroll system model was takes an efficiency approach to
implementing and managing the system by building a single and standardised
centralised. All of function of the payroll system will be control by centralised and it
will be focus on maximizing efficiency on standardised operating systems. Global
payroll systems models systematically are:-
Capabilities : - Centralized and globally scaled.
Operations : - Implementing parent companies strategies.
Management : - Subsidiaries are delivery pipelines to global market.
Knowledge : - Developed and retained at the centred.
Control : - Operational and strict (Tight control over everything)
3.4.3 International Payroll System Model
International payroll system model was takes a learning and sharing approach
to implementing and managing the system by transferring and adapting knowledge
and expertise to local organisations while continuing to retain considerable influence
and control over the local organisations. This system will allow for local control over
many decisions, responsibilities and asset. With this system it becomes balance
between local autonomy and central oversight. International payroll systems model
systematically are:-
Capabilities : - Only sources of core competencies centralized.
Operations : - Leveraging parent company competencies.
Management : - Subsidiaries appendages to domestic corporation.
Knowledge : - Developed at centred and transferred overseas.
Control : - Administrative and Formal (Tight linkage with headquarters)
3.4.4 Transnational Payroll System Model
Transnational payroll system model was increasing complexity, diversity and
volatility of the system. It was a combination all of the model and brings efficiency
through an integrated network of competencies and processes, provides flexibility
through specialised roles and responsibilities and creates a learning organisation
through the facilitation of multiple innovation processes with three critical component
that is global efficiency, local flexibility and innovation/sharing. Transnational payroll
systems model systematically are:-
Capabilities : - Dispersed, interdependent and specialised.
Operations : - Differing contributions by national units.
Management : - Coordination (Cooperation and shared decision-making).
Knowledge : - Developed jointly (Shared worldwide).
Control : - Large flows among individual business units.
CHAPTER 4
INVOLUCRES
4.1 Implications Payroll System To The Management
Our group was make assumption there is two general implications have been by using
the payroll system to the management. The two general implications are good implications
and worse implications.
The good implications are mean by using the payroll system, the management can
achieve the positive improvement such as:-
a) Reduce the management cost
By using the payroll system it may reduce the management cost. The system
may reduce the cost of paper, telephone, postage and printing example E-
Payrolls. It also paperless support system.
b) Easier to compliance, manage and report
Payroll system have been designed to optimum the salary management to the
company, it will let the management of the company easier to compliance,
manage and report of the monthly salary by data collecting, data processing
and data storing and all of the information and document through the
computerized system.
c) Reduce number of employees
The management can reduce to hire more employees when using the payroll
system. The system was generated to collecting, process and storing data with
the less manpower needed. It may reduce the number of employees to involve
in manages the payrolls management.
The worse implications are mean by using the payroll system, the management were
facing the negatives impact to the organisation management such as:-
a) Not Apply To Unskilled Manpower
That was barrier to practices the system if the manpower unskilled about the
system. The manpower need to attend a special course or trained by a vendor
to using the system in a good ways. It may take a time to expert.
b) High Maintenances Cost
The system must be have a good maintenances by the IT department
especially if there are using a network system or online system. All the
computerized system must be protected from the phishing or hacking by the
hackers. There are lot of Payroll System software in the market with the
different vendor. We need to use the genuine software to avoid the problems.
c) System Server Breakdown
When the system server breakdown the payroll system cannot work well.
4.2 Traditional Payroll system
Employers are responsible for ensuring that their employees are paid accurately and
timely. To accomplish this feat, employers often use a payroll system. All traditional payroll
systems have their own method of payroll processing. Although they can provide invaluable
payroll services to employers, there are some cons to using them.
Outsource/External
An outsourced or external payroll system is used when an employer assigns
the bulk of his payroll tasks to a payroll supplier. Payroll chores include complete
payroll processing, tax filings and sometimes 401k administration. Many employers
outsource their payroll because it is relatively inexpensive and relieves them of
payroll processing burdens.
The downside to this system includes the inability to contact a live payroll
professional when an urgent need arises. The payroll supplier is located off-site and
often couriers the pay checks/stubs to the employer. If employees have pay check or
direct deposit discrepancies, and the payroll supplier has too many clients or is
understaffed, it can be very difficult getting resolutions as quickly as desired. With the
payroll company operating from a remote location, it can be tough to decipher what is
truly occurring with your payroll until payday. If the payroll company makes tax
errors, the employer may not be aware of it until the government fines him.
In-House Computerized
Many employers use an in-house computerized payroll system, which is just
as popular as an external payroll system. All the employer has to do is buy the payroll
software and employ an on-site payroll staff to perform the payroll processing.
The cost involved in paying the payroll staff a salary plus benefits is often a
disadvantage of this system, particularly when compared to the low cost of
outsourcing the payroll. Further, the payroll staffs is often responsible for extra tasks
such as tax filings, processing, benefits administration, direct deposits and system
maintenance. If system problems occur, the payroll staffs is often required to work
extra hours to help fix the issue, which can be expensive to the employer. The payroll
staffs undergo considerable stress when payroll errors occur because employees can
approach them directly, rather than waiting on their supervisor to contact the external
company.
In-House Manual
The in-house manual payroll system is the most traditional payroll system;
however, it is becoming increasingly uncommon. Employees' time sheet and wage
calculations, payroll verifications, check printing, and tax computations and filings
are all done by hand. All payroll errors are corrected manually as well, resulting in a
tedious task. The greatest disadvantage of manual payroll systems is their propensity
for errors. With so many calculations being performed by hand, it can be quite easy to
make mistakes and doubly hard to correct them.
4.3 Conversional payroll system
The most obvious benefit of conversional payroll system with payroll software is that
payroll calculations such as tax deductions can be completed in a fraction of the time that
they would take to work out manually. Year-end reporting is also usually automated, and
both pay slips and annual reports are archived in case copies are needed later
Time recording
Payroll systems can also incorporate, or integrate with, timesheet systems that
record employee attendance or time worked. In this way, information about hours
worked, whether collected automatically as a user or operator logs into a system, or
manually entered into an electronic form, can be automatically transferred into the
payroll system
Reporting
Using basic payroll data, together with data on attendance and hours worked,
payroll systems can provide a wealth of reports. This allows in-depth analysis of staff
costs for the business as a whole, across departments and even individual jobs and
contracts.
Storing personnel records
Most organizations will also keep other data about employees, such as records
of annual leave. This type of information is usually associated with the broader human
resources function. You can get payroll systems that will record these additional types
of information, avoiding the need for a separate software package.
Planning
The ability of payroll packages to provide forecasts means you can plan staff
costs and budgets by entering hypothetical numbers to see the exact total cost of an
employee.
4.4 Suggestions
The new payroll system must be flexible enough to cater the needs for various
components. This component can be grouped into 3 component that is input, HRIS database
and output. Input, one of the main components in the subsystem. It is also referred as a main
gate to the access of information. This component function is to smooth down the system to
enable the user to get to it step by step. Without it, the whole system is a failure and it has to
be sure of its accessibility of every access of information in it and for every updating process.
4.4 Critical Analysis
For the payroll system we should looks at two points of view. View of the employees and also
the manager. Is the payroll system is benefited for both parties? The payroll system must be benefited
for all the employees in an organization and also must be easy accessible to employees. With the
payroll system, employees can view their salary on line and print out the salary slip. In certain
organisation employees are allowed to print and certain organisation does not allow it because of
security reason. Compared with manually where employees need to wait their salary slip given by the
Human Resource Department. It could be delayed in distributing the salary slip due to technical
problem. With the payroll system all the data were kept safely in the system. The employees can view
their monthly salary throughout the year and the data can be accessible easily.
The employee data must always be updated. If there are any changes on the employee
data, it’s their responsibility to update n validated by the employees themselves and Human
Resource Department will oversee the accurateness of the data.
A critical and challenging function for organization of any size is running a prompt and
accurate payroll. The flow on effects of payroll errors can have a crippling influence on stability
across the business. The payroll documentation can consume considerable time and labour in the HR
department. Integrated e-payroll system updates employee information such as changes in
demographics, benefit eligibility, income tax, employment status, zakat and salary in real time across
all e-payroll system. Reports generated by the software become useful tools for analyzing labour costs
and exposure and tracking daily payroll expense against sales, as well as monitoring salary grade and
pay band distribution across the organization. Existing financial management systems can be
interfaced with e-payroll system.
4.5 Conclusion
Base on the topic, a conclusion can be made when ePayroll system give a lot of
benefits to the employees and organization specifically. If we compare with the new system,
the company has to spent more money for the overtime paid to the staffs and more times to
go through the process. However, by implementing the online ePayroll, organization saved a
lot of time and money. Besides, if the organization increase the quality of the subsystem in
the ePayroll, job description, employee performance appraisal which can give a lot of
information to the employees. Employee will spend less time in order to get update
information about on employees and organization.
CHAPTER 5
JOURNAL ARTICLE
Enhancing Staff Payment Systems At Hughes Supply
By Jay Romans, Caryl Lucarelli and Lindsay Graham
CHAPTER 6
STUDENT PERSONAL REFLECTIONS
6.1 Mohd Nasrun Firdaus Bin Azmi
Assalamualaikum W.b.t
Praise to Allah S.W.T finally, we have finished completed this group assignment. For
me it was the interesting paper work. From the task I gain more knowledge regarding the
payroll system especially how to create an idea to elaborate the information from the books,
journal, article and real system. And what I found, nowadays technology of payroll system is
so fearfulness and advance. For my group members, the cooperation given among all of us is
very effectively. Every weekend we do the revision and together discuss about the project.
Even they are may obstacle in order to finished it such as time constrain which a lot of work
to do is office but we do it as good as possible. As the student of HRD we need to be an
expert about the HRIS and the need moving towards to the ICT. I’m happy in doing this task
because besides getting knowledge about HRIS topics, I also get an experience to improve
my knowledge.
6.2 Hj. Othman Bin Mohd Said
My experience in this assignment, give me a wrong picture. Never the less after few
discussions, I was put into a right track. However, due to insufficient knowledge and
information, the progress was delay but after several discussions. We manage to complete it.
Thank you for introducing SHP 3423 to me and with the experience gained it gives me much
more confident in this subject and its application. The whole subject matter was a perfect slot
for my unfilled vacuum knowledge. Last but not least, I sincerely hope that the report is as
expected by our lecture DR. Nur Naha Abu Mansur for her guidance.
6.3 Normala Bte Abu Hassan
I would like to say thank you to all my group members for their efforts and
times to make sure this project paper is done successfully. Also would like to thank our HRIS
lecturer Dr Naha for her guidance and comments for this project paper. As one of the user of
the payroll system, I did not know the follow of the system and how my Human Resources
Department worked with the system. As I know at the end of the month just only view the
pay slip and print it out. With the topic that our group choose, it’s help me to understand the
follow of the system itself. It’s help me a lot on to understand the whole process of the
system even I am not working in the Human Resource Department but I really gained a
valuable knowledge of the payroll system. As the student of the HRD we need to know the
latest for the HR system even duo we are not working at IT Department. With the latest
technology of IT, its helps a lot in keyed in the data system of the employee and also save
time. Last but not least, I am happy with this project paper and hope our lecturer, Dr. Naha
satisfied with it.
6.4 Muhammad Syaifullah Bin Jamaludin
This our 2nd
project paper for Human Resources Information System. We plan and
design this project early of the semester. Several discussions we had done in order to make
sure this project paper done properly. Every group members are given their own task and
need to complete within the time frame given. If one of the group members did not
understand about the task given, we will hold a discussion and help our group members to
solve the task. For my point of view, payroll system is very important in every company.
Because that is the important part for the company and employee itself. With the payroll
system, employee can view and print their pays slip without waiting for the Human Resource
Department to give to employee at the end of month. Employee can view their pay slip at any
time their like because the system keeps the data. Lastly, I would like to thanks my group
members for the guidance and also our beloved lecturer, Dr Naha for her comments and
supports.
6.5 Ruwaidiyyah Bte Md. Nor
Assalamualaikum w.b.t
Many thanks to Dr. Nur Naha that has been exposed me to another strategic plan in
managing human resources through this subject. As a Human Resource Officer for three
years without basic knowledge, it was like a man in a dark looking for brightness to get the
true path. Yet, I’ve got an idea on how to manage my department in proper way, effectively
and efficiently. After completing this assignment, it can be conclude that Payroll systems can
define standard rules for automatically assigning and changing employee salary by using
simple formula. They are able to control processing rules and calculations using fast formula
and use logic for complex cases. They can manage global compensation with one application
by implementing a core payroll engine and installing local extensions to add the necessary
functionality, reporting and process for individual countries. As this assignment completed, I
have found that this system is one of the efficient and helpful tools in managing my task
systematically. I’ve been approach this system (HR2000 Quick Pay and Quick Staff) to my
management to be use into my department. After details review and discussion on the
proposal prepared with the principles, the management had agreed to get this system into the
department. Yet I’m on my learning process to use and master the system. It is not just
making my task easier, but had upgraded my organization to one step ahead as one of
Information Technology System Integrator. Hopefully, this will help me in my carrier
development, improve my skill and challenge my ability to look forward to be a competent
and successful HR Manager in two years ahead. Insha’Allah. Finally, a thousand thanks to
my entire group mate for their kind cooperation and gave the best effort to complete this
assignment very well. Well done and all the best guys!
6.6 Zuratul Jannah Bte Zuhairon
First of all, I would like to express my gratitude to Dr. Nur Naha for
the exposures of Human Resource Information System (HRIS) and guided us along
the accomplishment of our HRIS subsystem group project.
By doing this assignment, I am now really understand the model of HRIS
especially the payroll system. Before this I only heard about payroll system without
having depth knowledge on how to create online system using HRIS subsystem
components which are input, process and output. It has been good for me to learn
first-hand what this human resource information system is all about.
And not to forget to all my group members, I will always be thankful to you
for all the hard work and efforts you have put in. I would like to add that I have really
enjoyed the experience of working together to complete this assignment and I also
believe that group work is an inevitable part of students’ life, and indeed life in the
workforce so I have come to the conclusion that it is better to get involved and do the
work as a team rather than working alone. That way there is a better blend of ideas
being thrown around while the work is completed in a shorter space of time.
Thank you once again to all for your guidance and patience.
6.7 Sharil Izwan Bin Leman
When my group get this topic, I’m just say WOW!!, because before this I’m just only
heard about payroll system but didn’t have intention to know deeply. During this task, I and
my group members hardly to find what mean payroll system. For me it was best experience
because we need to search Google it all times to ensure that we have right understanding
about this topic. Although this task give me the learning fun, I’m quit depressed because have
to face the problem, which need me to solve slowly. These tasks give me challenges to know
how it’s operation and process the system. The misunderstanding about opinion always
happens because everyone has their own perception. Besides, these tasks also given me an
experience to handle the problem with minimal resource that we have. I and group need to
find it hardly in short times. I’m also felt happy and satisfied because all of the group
members gave a full commitment in order to produce a good project. Lastly thanks to my
friends and my lovely lecture Dr. NUR NAHA.
BIBLIOGRAPHY
Dr. Nur Naha Abu Mansur Lecture Note SHP 3423 Human Resources Information System
Unpublished
J. Allen Doran, Ian J. Turnbull, Glenn M. Rampton Human Resource Management
Systems: A Practical Approach 2nd
edition 1999 Carswell Legal Publication Toronto,
Canada
Dr. Michael J. Kavanagh, Dr. Mohan Thite Human Resource Information Systems: Basics,
Applications, and Future Directions 1st edition 2008 Sage Publications Inc USA
Robert H. Stambaugh 21 Tomorrows: Hr Systems in the Emerging Workplace of the 21st
Century 2000 Rector Duncan & Associates inc. 314, Highland Mall Boulevard,
Austin, Texas, 78752 USA.