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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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
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
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
-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
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
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
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
- 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
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
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 •