Payroll System Documentation

Information Technology is the study, design, development, implementation and support management of information system. It helps to produce, manipulate, store, communicate and/ or disseminate information. We used the term information technology or IT to refer to an entire industry. In actuality, information technology is the use of computers and software to manage information. In some companies, this is referred to as Management Information Services (or MIS) or simply as Information Services (or IS).

The information technology department of a large company could be responsible for storing, protecting processing, transmitting and retrieving the information as necessary.

Nowadays all establishment are becoming modernized, they use modern technologies to make their transaction fast, easy and accurate in order to avoid waste of time and for the sake of safety and security. It also helps human to solve and understand complex problem and analysis such as computational need of human. Especially the business establishment or corporation processing data and transaction.

The success or failure of an organization in today’s highly competitive and technological business world depends on how they manage to streamline.

The flow of information between their department and outside the world. Implementing a system make their transactions easy and accurate and to secure their files and data. There are different system that used by the company and other establishment; such as Inventory System which is an integrated package of software and hardware used in any business sectors to monitor the quantity, location and status of their income regarding on their products going in and out.

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Enrollment system is the system in a school when a student is enrolling for a specific course the school requires all the necessary information of the enrollee. Library System is a system of coding and organizing library materials (books, serials, audiovisual materials, computer files, maps, manuscripts) according to their subject and allocating a call number to that information resource and the example of complex transaction is the Payroll System which it is critical business operation dealing with numerous accounts and produce plenty and confidential files.

Payroll is a financial statement that shows the total amount of money paid to the people by a particular company. It’s an accounting system that calculates the amount due to employee’s salary after the necessary deduction. It is also generating a statement of amounts to be paid to employees. It is also amount of money a company, business and establishment pay its employee at any given time. In order to pay their employees for services rendered, employers performs payroll processing which must be done in timely and accurate manner to ensure that employees receive their salary.

Payroll System is system used in a series of accounting transactions dealing with the process of paying employees for services rendered, after processing of the various requirements for withholding of money from the employee for payment of payroll taxes, insurance premiums, employee benefits, garnishments and other deductions. It is use in order to make the payroll transactions fast, convenient and make data and confidential files secure. Using a manual payroll procedure can’t secure data especially for those confidential files for payroll. A manual payroll system is done by hand.

This means that all wages calculations are performed on paper. An advantage using of manual payroll is that it costs very little to use. However it takes a lot of time and energy to do manual payroll processing. Using a computerized payroll system is much quicker than a manual payroll. It reduces the amount of paperwork to be filed, as most of the payroll information can be store in the system. It will not only provide an accurate calculation and fast process of payroll transaction but it will also secure data through security implementation and accordingly arrange file provided by a well designed database.

A database is where you are storing your files and data for its security. It is more widely used by all users that have a computerized system by different sectors. And a Database Management System is software who operates database providing storage, access, security back-up and other facilities. The implementation of this proposed system is a great help for the Holy Child College of Information Technology Inc. especially to their HR Department, Accounting Department and as well as Finance Office. They lessen their job and they can manage their payroll processing accurately. PROJECT CONTEXT

The Holy Child College of Information Technology Inc. located at Allah Valley Drive, Surallah South Cotabato was on its eight years operation. The school in the municipality of Surallah offered a Technical and Collegiate courses. The said institution was lack of facilities such as any computerized system had not been implemented. The said school wishes to utilize an existing hardware and software as soon as possible. As a pioneering graduating student for the Bachelor of Science in Information Technology we are tasked to develop a propose system as part of our Capstone Project.

We found out that the main problem of the said institution is difficult to process payroll transactions because of their manual payroll procedure that takes a long time to finish their task due to many steps and processes to undergo. Other problems we found out are as follows: •Hard in processing payroll slip and payroll form •Difficulty in calculating the wages. •Too much time consumption. •Misplaced some employee data with plenty assigned to the bookkeeper with cause’s inconvenience to their services •Files are not totally secured and there is a possibility that the files might be lost. •Delay in releasing employee salary

On their procedure, it will need more time and manpower to complete the payroll processing. In this problem we are implementing a Computerized Payroll System for the Holy Child College of Information Technology Inc. to minimize the effort of the bookkeeper to make an efficient and accurate computation of payroll to create a well designed database and to implement strong security of the system for data secrecy. This proposed system is a great help to the accounting section of the Holy Child College of Information Technology Inc. especially to the Bookkeeper and Finance Office of the said school.

It will help to lessen time and effort of the Bookkeeper in filing all employee records and files as well as to the Accounting Department in preparing payments of the employees. This proposed system can accommodate and produce a paperless environment. PURPOSE OF THE STUDY The purposed of this study is to propose a Computerized Payroll System for Holy Child College of Information Technology Inc. We found out that this school had no any Computerized System since it was started its operation that’s why we choose to implement a Computerized Payroll System for the said institution.

To have a Computerized Payroll System could easily to generate and calculate all information regarding the payroll transactions it’s reason that the said institution needs a reliable, effective and easy- to- use payroll system in order to make their task faster and easier without any hassle. This Computerized Payroll System we implementing for Holy Child College of Information Technology Inc. could encompass every employee of a company who receive a regular wage or other compensation. To provide an accurate calculation and fast processing of a payroll transactions.

To help the said institution to comply the timely payment of the wages and salaries for the employee. To secure the employee files by using a database where to store all data regarding to the payroll and to have security for their data secrecy. DESCRIPTION OF THE STUDY This proposed Computerized Payroll System allows to process and issue employee print out report for their Pay Slip and Payroll Statement. It will compute wages and deductions and enter data into a well designed database for its security. It will record all employee information such as transfer and resignations in order to maintain and update payroll records.

It will help to lessen time and effort of the Bookkeeper in Accounting Department in preparing payments of the employee. This proposed system will lessen their job and they can manage their payroll processing accurately. SCOPE OF THE SYSTEM This study is designed to develop a Computerize Payroll System for the Holy Child College of Information Technology Inc. It covers the process of preparing Pay Slip of each employee. The system is designed to compute for the income of an employee whether regular or contractual.

It is also developed with features used to provide ease in searching and updating records such as search, add, edit and delete. It will compute for the total net income of an employee by adding the bonuses to the gross income and deducting the taxes and fees from the gross income. It will keep the records safety and computing the exact wages of each employee, including the stored report list of employee such as hourly or weekly basis salary, net pay, overtime and some deductions including PHILHEALTH, SSS, Cash Advances and others.

LIMITATIONS OF THE SYSTEM This proposed Computerize Payroll System for the Holy Child College of Information Technology Inc. can only provide the print out report for the Pay Slip and Payroll Statement for the employee. It has a security feature where only an authorize personnel are allowed to access the system which therefore guarantees company employees the reliability that they desire. The system is limited to designated officials in the Payroll department since it will incorporate a security measure.

The Payroll Administrator only has a responsible for adding new employees, updating employee’s records and changing all employee information. OBJECTIVES This proposed system is designed to provide a fast and reliable automated solution for the recording and processing of the salary of an employee. The main objectives of this research are to develop a Computerize Payroll system for Holy Child College of Information Technology Inc. To prepare a detailed salary records of all employees in an institution.

To generate Pay Slips through the calculation of salary and to ensure the proper use of manpower. The specific concern of this system are as follows: •To minimize the effort of the Bookkeeper in processing and preparing the payments of an employee. •To lessen the hassle in manually computing an employees net income. •To ensure that employees are paid, contractual obligations are met and taxed and other withholding duties are upheld. •To provide ease, lessen the possible errors and produce faster results. •To determine whether an employee is a regular, fulltime or part time since a egular employee or full time employee has a different computation than that which is casual or contractual. •To ensures quick and accurate computation of a certain employees monthly salary, hourly or weekly salary depending on factors such as basic pay, benefits, bonuses, taxes, exemptions as well as other compensations and deductions Fast, accurate and reliable results are going to be produce by this system therefore proving it to be effective enough to meet the company’s needs regarding the Payroll System. Technical Background

Through hard work and tough research and having enough knowledge, we come up to a conclusion that our study is technically feasible. The user of the system can maintain, operate the system easily and back up files such as payroll report and other cash transaction. Hardware Specification: ITEM/PART SPECIFICATION MonitorAOC 15” PrinterEpson LX-300+11 AVRUltra Power 300-220 v Black CD-ROM DriveLG ProcessorL775 Pentium D 3. 06 GHz MouseGenius Ps2 Hard DiskSeagate 80G IDE KeyboardAsus P458X MotherboardMB S940 AM2 MemoryDDR-1GB PC-400 Kingston Software Specification: Microsoft Windows XP •Microsoft SQL Server •Microsoft Visual Studio 2005 OPERATIONAL The Holy Child College of Information Technology Inc. Payroll System will be used by the HR Department and Finance Office once it will be installed. Payroll System will be operated by the HR personnel. The benefit will always goes to the departments and to the employees as well. We also make sure that the system is easy to use and user friendly. ECONOMICAL Estimated cost of the Proposed Hardware and Software. Hardware ITEM/PART SPECIFICATION AMOUNT MonitorAOC 15”6,500

PrinterEpson LX-300+112,800 AVRUltra Power 300-220 v Black400 CD-ROM DriveLG2,500 ProcessorL775 Pentium D 3. 06 GHz9,295 MouseGenius Ps2450 Hard DiskSeagate 80G IDE5,400 KeyboardAsus P458X950 MotherboardMB S940 AM22,500 MemoryDDR-1GB PC-400 Kingston1,460 TOTAL 32,255php Software •Microsoft Windows XP(Licensed)5,500 •Microsoft SQL Server(Licensed)5,000 •Microsoft Visual Studio 2005(Licensed)5,500 TOTAL 32,255 php LOCAL RELATED LITERATURE Cagayan de Oro City Hall Computerized Payroll System The City Accounting Department has introduced an upgraded computerized ayroll system for permanent employees in a bid to improve its services and maximize resources. “This project, which was conceived two years ago, basically aims to improve our services particularly in the processing of payrolls for permanent employees,” City Accountant Wilma Polley-Rugay told payroll in-charge of the different departments and offices at City Hall during a briefing and orientation on the concept of the one-month payroll system held Friday last week at the City Council session hall in Cagayan de Oro City.

With the added features of the new computerized payroll system, Rugay said the preparation, processing and payment of payroll system to permanent employees would be hastened and fast-tracked. Adopting of the one-month payroll system is also beneficial, not only to the City Accounting Department, but also to the payroll-in-charge as it would save time, energy and resources. Employees who handle payroll preparation and processing can now attend to other office needs and concerns as the new payroll system will lessen their workload,” she added. Under the new payroll system, preparation and processing of payroll, which reflects the accrued, amount payable every 15th and 30th day of the month, done only once. Unlike the time-consuming old payroll system, preparation and processing of payroll is done twice a month covering the first half and second half of the month. (www. sunstar. com. ph)

Computerized Payroll System of Department of Health (DOH) The Computerized Payroll System is a window based program especially designed to facilitate and simplify the monthly preparation of general payroll and related reports such as Standard computerized payroll system for use in all DOH offices, Allows faster and more accurate computation of monthly gross income, deductions and net salary, Faster and less-resource-consuming generation of General Payroll and other payroll related reports, Security and integrity of payroll data and information.

The Features of computerized payroll system of DOH are Graphical User Interface, Interactive and menu-driven program, Systematic maintenance and retrieval of employee records, Flexible as it provides options to include additional fields for other compensation and deductions unique to an office or unit, Automatic omputation of monthly net income, GSIS, PAG-IBIG, Withholding Tax and other deductions, Y2K compliant, Fast and easy generation of the General Payroll and all other payroll related reports which include Monthly reports like GSIS and PAG-IBIG remittances, Denominations Report and Leave Credits Report and annual Year-end Tax Reports, Password security to ensure the integrity of data.

General payroll reports such as Payroll Summary sheet, Pay slip, Leave Credits Report, Withholding Tax Statement (W-2), BIR Remittance Reports, GSIS Remittance Reports, PAG-IBIG Remittance Reports, Other User-defined Reports (PERA, ACA, PNB, etc.. ). (www2. doh. gov. ph) The proponents learned from this study that the Cagayan de oro and Department of Health has its own database for their employees. They stored the information of the employees to the database that represent each employee’s records as a separate persistent object.

FOREIGN RELATED LITERATURE Titus Information Payroll System A Payroll System designed to produce payroll checks with appropriate withholdings, benefits, allowances, and deductions for employees in multiple companies, departments, and/or sub-departments. It has been designed to handle up to 1,000,000 employees in 100 companies, 1,000 departments in each company, and 36 sub-departments in each department.

Some of the features and benefits of the Payroll System are multiple cost centers for payroll reporting, will handle special non-taxable benefits for ministers, flexible withholding capability, ability to split payroll expense between different cost centers, complete governmental reporting; FICA, FUTA, SUTA, Workman’s Compensation, W-2’s, and 1099’s, Payroll check reversal, One check capability, Salaried, hourly, and contract employees in the same payroll run, Combined processing for weekly, bi-weekly, semi-monthly, or monthly, Taxable and non-taxable benefits and deductions, Multiple hourly rates for each employee,

General ledger interface, Check list UFD file for check reconciliation, Extensive personnel information for each employee, Accrual of sick, vacation, and holiday hours, Flexible federal, state, and local taxation, Multiple company, department, and sub-department capability, Flexible benefit and deduction capability, Easy federal, state, and local tax table maintenance, Split income over multiple companies, departments, sub-departments, Payroll accrual/reversal capabilities, Time card data entry function, Special message function for printing on check stubs. (Www. titusinformationsystems. com) Canadian Payroll System

Sage Accpac Canadian Payroll is a flexible module that gives you complete control over employee earnings and benefits, special payroll situations and government reporting, ensuring that your company’s payroll requirements and personnel policies are accurate to the penny. You can enter or import timecards, enter after-the-fact paycheques, run automatic calculations or even combine all three methods to get your pay data into the system and your paycheques deployed on time. Payroll handles all pay frequencies; multiple work states; unlimited earnings, deductions, benefits and taxes; and other pay factors such as expense reimbursements, accruals and advances. (www. 2020software. com) CONCLUSION