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Chapter 1 The Background and its Study 1.1 Introduction ‘Payroll' refers to the records - paper or electronic - and calculations that you make to work out your employees' pay and deductions under the PAYE (Pay As You Earn) system. It's essential to a business or company that you pay your employees the right amount and on time - and that you make the correct deductions. So keeping accurate payroll records is really important. Now a day, Manual System is replaced into more advance and modern technology, just like the Manual Payroll System where the accountant, computes or process employees salaries through calculator. The way of saving files and important documents are only filed in filing cabinets that may cause loss of files when large amount of data are being received. In addition, it is not secured. And in fact, most accountant, uses same software of Microsoft office especially MS Excel. And with the use of this proposed system, a new and more advance Payroll System may be produced which can provide data security, prevent loss of data and redundancy and easier, accurate and faster to use. SCAS Computerized Payroll System Page 1
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Page 1: Introduction

Chapter 1 The Background and its Study

1.1 Introduction

‘Payroll' refers to the records - paper or electronic - and calculations that you

make to work out your employees' pay and deductions under the PAYE (Pay As You

Earn) system. It's essential to a business or company that you pay your employees the

right amount and on time - and that you make the correct deductions. So keeping

accurate payroll records is really important.

Now a day, Manual System is replaced into more advance and modern

technology, just like the Manual Payroll System where the accountant, computes or

process employees salaries through calculator. The way of saving files and important

documents are only filed in filing cabinets that may cause loss of files when large

amount of data are being received. In addition, it is not secured. And in fact, most

accountant, uses same software of Microsoft office especially MS Excel.

And with the use of this proposed system, a new and more advance Payroll

System may be produced which can provide data security, prevent loss of data and

redundancy and easier, accurate and faster to use.

SCAS Computerized Payroll System Page 1

Page 2: Introduction

1.2 Background of the Study

Sumulong College of Arts and Sciences (SCAS) was established since 2007,

a college with only one vision in mind: that of producing graduates who have the

competence and the ability to compete with the best of the world. There are competent

faculties, 5 full time and the remaining 20 are part-time faculty. It is also worthy to know

that the college has been establish as a legacy of and in memory of the late senator

Lorenzo S. Sumulong, a man of excellence and integrity made the country proud with his

highly publicized and world-acclaimed debate against the Russian law maker Kruschev.

And as time passes by the population of the employees in SCAS is increasing. As of this

year, it has 27 full time and 20 part time employees. And unfortunately as a computer

school the accountant only uses Microsoft Excel for the preparation of the payroll and

generating pay slips for the employees’ cut-off period. The accountant manually records

the different data.

SCAS Computerized Payroll System Page 2

Page 3: Introduction

1.3 Theoretical Framework

The accountant of Sumulong College of Arts and Sciences is currently using

Microsoft Excel for the preparation of the payroll and generating pay slips for the

employees’ cut-off period. The accountant manually records the different data. The

employees used time cards and buddy clock for their daily time record. HRM personnel

collect the time card for validating the time record and making a summary report

attendance of the employees and send it to the accountant. The accountant will input the

data and compute the salaries of each employee.

INPUT PROCESS OUTPUT

Total No. of Days Present, working hours (Time Cards)

TIME ATTENDANCESummary of Employees

Time Attendance

Employee Information

-Employee Number/ID number

-First Name

-Surname

-Last Name

-Birth date

-Contact Number

-Position

-Number of dependents

-Basic Rate

-Employee Type

ADD / UPDATE EMPLOYEE

INFORMATION

List Employees Information (in the File

Cabinets)

Employee Deductions PAYROLL COMPUTATION Pay Slip

SCAS Computerized Payroll System Page 3

Page 4: Introduction

-Pag-ibig

-GSIS

-PhilHealth

-Cash Advance

-Loan

Total No. of Days Present, working hours (Time Cards)

Payroll Summary

Incentives/ Bonus

SCAS Computerized Payroll System Page 4

Page 5: Introduction

1.4 Conceptual Framework

Payroll Computation

The SCAS Computerized Payroll System will automatically compute the gross salary

of each employee; but the accountant must get the working hours of the employees in

Time Monitoring System and must input and select the type of deduction of the

employees have. The system can generate pay slips which contain the exact amount of

salary and deductions of all employees.

INPUT PROCESS OUTPUT

Employee Information

-Employee Number/ID number

-First Name

-Surname

-Last Name

-Birth date

-Contact Number

-Position

-Number of dependents

-Basic Rate

-Employee Type

ADD / UPDATE EMPLOYEE

INFORMATION

List Employees Information (in the

Database)

Employee Deductions

-Pag-ibig

-GSIS

-PhilHealth

-Cash Advance

-Loan

PAYROLL COMPUTATION

Pay Slip

SCAS Computerized Payroll System Page 5

Page 6: Introduction

Total No. of Days Present, working hours (External: Time Monitoring System) Payroll Summary

Incentives/ Bonus

1.5 Statement of the problem

1.5 1 General Problem

Sumulong College of Arts and Sciences is a computer school but still using MS

Excel in generating their payroll system.

Manual Payroll system uses MS Excel Spreadsheet 2003 for the computations

and also for printing reports. It uses bandy clock for time-in/time-out. It also saves its

employees information in the file cabinets , which will lead to slow data retrieval,

information security and integrity is in risk and filing cabinets requires a lot of space

in the room.

1.5.2 Specific Problem/s

Processing the payroll of the employees is time consuming and

- In the existing manual system of the company, the payroll

clerk uses Microsoft Excel to compute the salary and total

deductions of the employees in preparing the payroll for the

month.

- Every payroll cutoff period, the HR personnel checks all the

time cards of all the employees manually. It is

How to provide the accurate salary output efficiently?

-As stated, the payroll clerk uses MS Excel for the preparation of the

payroll; MS Excel has a “link/references” feature wherein a specific sheet within

the worksheet can be link to another to get the total result in any computation, as

SCAS Computerized Payroll System Page 6

Page 7: Introduction

a result the data is identified to be inaccurate after being checked by the payroll

clerk.

How to save the employees data and information?

Management of Employees data in insufficient and

- Employee’s information’s are filed in folders and these folders are kept in filing

cabinets. In time that the accountant needs to retrieve certain reports, he/she has to

search for it in the bulky folders stored in filing cabinets, which will lead to slow data

retrieval, information security and integrity is in risk and filing cabinets requires a lot of

space in the room.

1.6.1 General Objective

To enhance and design a Computerized Payroll System for Sumulong

College of Arts and Sciences (SCAS). The study aims to develop a computerized payroll

system that will support the entire payroll computation and management process of

SCAS.

1.6.2 Specific Objective/s

To process payroll salaries of the employees.

-The study aims to develop a module that automatically computes the total

deductions, total gross salary and total net salary of the employees for more

efficient and accurate result of data.

To provide the accurate salary output.

-The proponent will develop a module that automatically computes the total

deductions, total gross salary and total net salary of the employees for more efficient

and accurate result of data.

To provide Employee information module to easily deal with the generation of the

reports.

SCAS Computerized Payroll System Page 7

Page 8: Introduction

- The proponents will develop Employee information module to lessen the

difficulty of Accountant in terms of handling, searching and maintaining Employee

Records by replacing their manual system.

1.7 Scope and Limitation

1.7.1 Scopes

Computation module for computation of the employees salary

Keep the records of the employees.

Generate reports.

1.7.2 Limitations

Daily Time Record or Attendance of each employee is not included in our system

because the attendance or working hours of each employee will be provided by

the SCAS Monitoring system using biometrics

1.8 Significance of the Study

1) For the system users (Accountant) – the study provides system that is simple

and easy to use and provides reliable outputs, and can store.

2) For the future researchers - the researchers could learn the base

requirements in the system development. They could learn basic

manipulation of the system and analyze the system flow.

3) For the proponents of the study – through the help of this system, the

proponent’s abilities and knowledge in making programs will be enhanced

and improved. It will be a great help them as it prepares the proponents to be

more exposed in organizing and socializing with other people; it also makes

them to focus into harder and difficult task in the gears to come.

SCAS Computerized Payroll System Page 8

Page 9: Introduction

CHAPTER 2 REVIEW OF RELATED LITERATURE AND STUDIES

2.1 Local Literature

Blaze Payroll System is a simple payroll software package that automates payroll

computing and managing of employee accounting files. This is particularly designed for

small and medium-sized businesses to meet their specific payroll needs.

Monitor and manage your information like compensation packages, loans, deductions,

allowances and other benefits in your organization. Blaze system allows you to easily

comply with the timely submission of government mandatory contributions and reports.

Make payroll and tax computation fast and easy with Blaze.

Blaze was built on Smart Client architecture which allows you to use it even if you don't

have internet connection. Accounting data is also kept on your local data storage thus

giving you high security and control than a web-based system. For flexibility and more

comprehensive usability of your payroll system, this can be integrated with systems like

HRIS, Time-keeping and MS Accounting.

SCAS Computerized Payroll System Page 9

Page 10: Introduction

Reference:

http://www.blastsuites.com/Payroll.aspx

2.2 Local Literature

OCS HR Philippine Payroll

OCS HR Philippine Payroll is a comprehensive HR and payroll system for easy setup

and calculation of payroll for Filipino

offi ce employees and seafarers. The solution handles multiple currencies and global

payroll, and has a major advantage

of having all personnel data in one system. The solution also includes government tax

reports and allotment.

What are the benefits of using OCS HR Philippine Payroll?

Same data used in both HR and payroll, retain and reuse basic data for use in planning

and payroll •

Wages calculated on basis of activities •

Import and export payroll transactions, and link to onboard system and hours registration

WEB interface, with employee’s personal details, and payslips available •

Onboard system •

SCAS Computerized Payroll System Page 10

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Advanced calculation of wage scale •

Advanced currency calculation for payroll, with unlimited number of currencies •

Payslip sent by e-mail •

Day balance and expired competence can be printed on payslip •

Flexible reporting with history and non-approved payroll at any time •

Unlimited number of rates and pay elements •

Ability to run separate or common payrolls for different categories of personnel •

Advanced access control •

OCS Payroll consists of the following data

Personnel information – Overview with all employee`s key data and picture •

Rates and pay elements •

Payroll calculation with Filipino tax calculation and social security contributions •

Currency •

Payslip for employee and allotee •

Payroll information, current and historical •

POEA Reports •

Leave pay •

Additional modules

Transfer to Accounting

Automatic transfer of approved payroll transactions to accounts system •

SCAS Computerized Payroll System Page 11

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Budget

Simplified setup and calculation of crew costs, i.e. wages and travel costs

Reference: www.onsoft.no/bilder/filer/ocshr/.../OCSHR PhilippinePayroll .pdf

2.3 Foreign Literature:

We are the Leading Payroll Software provider in Singapore for Payroll system, HR

software & HR system with all Singapore Payroll & HR requirements.

We also provide Fingerprint, Biometric, Proximity time recorders for employee time

attendance & door access. Our software package powered with one database

integrated Time Attendance software, Payroll software, HR and E-Leave software's.

For our complete product details please visit our parent web site at www.info-

tech.com.sg 

 

Product

Name

  Info-Pay Version 8.0

SCAS Computerized Payroll System Page 12

Page 13: Introduction

 

Introduction : Info-Pay 8.0 is a Payroll Software designed to suit for all kind of Singapore

Payroll requirements. our Payroll software is the window based

concurrent multi user access and multi company software with unlimited

employee capacity.

Our Payroll System does automatic calculation for PAY SLIP, SALARY

ADDITIONS, DEDUCTIONS, MVC (MONTHLY VARIABLE

COMPONENT), CPF, IR8A, IR21, BANK GIRO TRANSFER FOR ALL

MAJOR BANKS, SDF (SKILL DEVELOPMENT FUND), FWL (FOREIGN

WORKERS LEVY) , CDAC, SINDA, MBMF, etc…

 

Features:   

     

   Payroll Basic

 Leave & Staff

Master

Payroll

System

House

Keeping

Payroll Software

Reports

Online CPF

PALLeave Module Concurrent Multi User

Pay-slip in

Sealed Pay-slip

Paper

Online Bank

GIRO

Leave

Entitlement

based on Join

Date /

Financial Year

Different Access leave

for different userE-mail Pay-slip

IR8A / IR21

FORMS

Up to date

Leave Prorate

as MOM Rule

Multi CompanyPayroll Summary

Report

IR8A Auto

Inclusion

Unpaid Leave

auto deduct

from salary

and show Pay-

Locking the Payroll

Period to protect from

other user

Year to Date

Summary Report

SCAS Computerized Payroll System Page 13

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slip

CDAC / SINDA /

MBMF

Medical Claim

MonitorBackup / Restore

Allowance

Report

Foreign Worker

Levy

Annual Leave /

Medical

Leave / Child

Care Leave,

et...

Audit Trial - To monitor

changes done by other

users.

Career Tracking

Report

Skill

Development

Fund

National

Service Leave

& Calculation

Work Permit / Birthday

Remainder

FUND / SDF /

FWL Report

Monthly / Bi-

Monty / Daily /

Hourly Pay

Employee Bio-

Data with

PHOTO

Confirmation / S.O.C

Remainder

Annual

Increment

Proposal Report

Pay by Bank

GIRO / Cash /

Cheque

Foreign

Address 

Annual Bonus

Proposal Report

 Children

Details 

Custom Report

Writer

Features:

Monthly, daily and hourly rated employees can be paid monthly or

bi monthly.

Pay slip can be printed in the concealed pay slip or A4 size paper.

Pay slip for individual employees can be printed out at the Mid &

End of the Month.

Payroll Summary report which shows the Basic Salary, Overtime

Pay, Shift Allowance, Deductions, Gross Wage, CPF contribution

details and Net Wage.

Reference: www.info-tech.com.sg

SCAS Computerized Payroll System Page 14

Page 15: Introduction

2.4 SYNTHESIS AND RELEVANCE TO THE STUDY

Local literature:

BLAZE PAYROLL SYSTEM

Features:

 Employee Menu : Employee Setup

Employees' personal information within your organization may be added, updated

or deleted manually using this feature. Some information required are employee

ID, full name, gender, marital status, birth date, hire date and termination date.

The employee records are arranged in boxes and you can double click each to

view the full details. This also includes a search feature..

-this feature shows full details of information of the employee that may help us in

giving ideas in creating the employee interface.

 Transaction Menu : Payroll Period

A payroll period is needed to set the inclusive period for each payroll per tax year.

A tax year is set from January to December; and inside that year, payday can be

set as weekly, semi-monthly or monthly.

-this feature may help us in generating different payroll period reports.

 Transaction Menu : Payroll Process Wizard

This guides the user step by step in going through the whole payroll process. All

the needed computation for your payroll is automatic after you set the required

payroll items like overtime, tardiness, performance appraisal, holiday pay,

allowances, deductions, etc. The system was built abiding by the government's

policies, so you'll have no worry missing out one.

SCAS Computerized Payroll System Page 15

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-this feature shows automatic computation for payroll that given us an overview

to provide a much efficient payroll system.

 Transaction Menu : Transaction History

Every payroll transactions made and each detail are kept in the database for

future reference.

-this feature also keeps record in every transaction for future references.

 Reference Menu : User Editable Philhealth/ SSS/ Pag-ibig Tables

Government mandatory deductions have to be maintained to have a reference of

how much are the employee and the employer's contributions to these

deductions.

-this feature may help us to provide editable government mandatory deductions

module.

 Reference Menu : Employment Status

Employment status like probationary, regular, contractual, resigned are

examples of status that can be set to address company's needs.

 Reports Menu : Payslip

Under report module, pay slip can be generated by transaction and by

payroll period.

SCAS Computerized Payroll System Page 16

Page 17: Introduction

Reference: http://www.blastsuites.com/Payroll.aspx

Chapter 3: Research Methodology

3.1 SPECIFIC METHODS FOR DATA COLLECTION

Since our own school is our client, we have decided to have a personal interview

with our client. The project team talked to the accountant for gathering of data about the

system specification, needed for creating our proposed system that can help them for

their payroll system in an efficient manner.

a) Method of research to be used

3.1.1 Interview

During requirements gathering stage, the proponents conduct interview with the

accountant of Sumulong College of Arts and Sciences who gave the resources

about the flow of the current system and the process of computing the salaries of

the employees.

3.1.2 Observation

The proponents had some inspection regarding the current system to gather

more ideas on how to design our proposed system. From this observation, we

noted some problems being encountered by the payroll clerk.

3.1.3 Internet Research

The proponents also conduct an internet research to gather more data and

topics that are related to our study.

SCAS Computerized Payroll System Page 17

Page 18: Introduction

3.1.4 Library Research

The proponents also used library materials like thesis documentation and books

that are related to our study in gathering significant information and validation of

our study.

3.2 SPECIFIC METHODS OF DESIGN

Rapid Application Development (RAD) is a software development methodology

that focuses on building applications in a very shirt amount of time. Traditionally with

compromises in usability, features and/or execution speed. The term has recently

become a marketing buzzword that generically describes applications that can be

designed and developed within 60-90 days, but it was originally intended to describe a

process of development that involves application

prototyping and iterative development.

SCAS Computerized Payroll System Page 18

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ANALYSIS AND QUICK DESIGN

The aim of the Analysis and Quick Design Stage is to gather the

software requirements specification and perform rapid design creation based on

the requirements. Meetings between requirement planning team and key client

users will be established at the beginning of the project life. This stage will

develop details and specific requirements based on the proposed functionalities.

The Quick Design Phase will involve the presentation of details

requirements from Analysis Phase, developing the required data model. The

result of this stage will be the screen flows and layouts for essential parts of the

system. Along with this, the system and unit test plans will be put in place for the

designed system. During this stage it is imperative to identify the core

requirements of the entire system and should be targeted for the initial

development of the prototype, and secondary requirements should be identified

and targeted for future development iterations.

CONSTRUCTION (PROTOTYPING CYCLES)

During this stage, the team will develop the application in iterative cycles

of development, testing, requirements refining and development again until the

development is completed. The team will convert the data model into a functional

database. In this stage, it is vital to deliver each iteration on time, while additional

functionality may be scheduled for development after the initial release. Once the

prototype has been developed, the team will test the initial prototype using test

scripts from the Quick Design stage. Review will be conducted on the initial

prototype that includes design team and customer/client review team. The next

iteration requirements determination will be conducted after the review.

SCAS Computerized Payroll System Page 19

Page 20: Introduction

REFINING REQUIREMENTS

Refining requirements happens repeatedly during this stage. Identifying

the core and secondary requirements shall be performed for all iterations. The

team will update the requirements, data models, test scripts and project plan as

during the Design Stage. The iteration plan will be developed and customer will

be notified and then the lifecycle will continue. During the final iterations of

development, the design team will update user documentation, perform User

Acceptance Testing and define the steps necessary for

deployment/implementation.

TESTING

During this stage the test focuses on the finished application rather than

the prototypes iterations. User Acceptance Testing is performed in this stage by

the technical team and the client.

IMPLEMENTATION

This stage will focus on integration the new system into the live system

(website hosting). The development team will prepare the transfers and migration

to the live system. Troubleshooting and system integration test will be performed

in this stage to ensure the site goes live smoothly.

e) Data Gathering Procedure

• Library Research - SQL Books, VB Books

• Internet Research- Codes, related systems

• Interview – company Info, computations

SCAS Computerized Payroll System Page 20

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SCAS Computerized Payroll System Page 21


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