PAYROLL SYSTEM CAPSTONE PROJECT DOCUMENTATION

Background of the study

HISTORY OF PAYROLL SYSTEM

A computerized payroll system, the employer invests in a computerized payroll software.

Using a software such as quickbooks allows the employer to enter the wages into the system

after he has manually calculated them. The payroll and check printing are processed through

the system. The employer has access to payroll reports that he/she can print and use to

double-check against what she has entered before printing the checks. This allows his/her to

correct any detectable errors beforehand. Computerized payroll system allow you to process

all your normal payroll task via a computerized system, rather than by hand. Essentials like

name, address, Social Security number and withholding rate for each employee are

automatically filled in for every pay period until you make an employee’s record inactive.

Many different vendors offer computerized payroll system. Like different word processors or

other computer programs, they largely offer the same types of features with slightly different

interfaces. Payroll is essentially how employees are paid. It’s the legal paperwork involved.

There's more to payroll than just handing out cash or checks. However, after gathering data

on what the employees did and compared it to their salaries, some simple payday

mathematics will let the employer hand out the dough.

Significance of the Study

A computerized Account Management System would be of great aid for the company and

to those who will be using the new system. Through computer based Account Management

System, processing of large volume of data is performed quickly as well as efficiently. The
proponents aim to increase the speed in processing payroll performance by means of decreasing

manual operation in the payroll.

The proposed system will help the accountant of Eagle System Inc. Through adopting the

system, it will help minimize the time effort of the accountant preparing payment of the

employees. The system can accommodate changing figures and provide a paperless environment

through well design database. The system can also provide an accurate computation of

employee’s wages for the employee.

The proposed system will be beneficial to the company for maximizing its profit and

minimizing manpower and additional equipments necessary for computing wages. With the use

of the proposed system, computations and gathering will accurate, data manipulating and

processing are expedited, report generations ate faster and security for the held are better, and

consumes less office space, a powerful business tool that would greatly aid updating of new

employee’s information.

For employees they will assure they are getting enough compensation to their work. They

can also monitor the salary in their payslip.

Objectives of the Study

A key focal point of this Account Management System process to replace their manual of

recording all transaction and computing the salary or the account of the employee by adopting an

account management system.

Specifically, the system aims to:

1. monitoring the employees accounts;

2. computes the wages of each employee and provide Pay Slip;

3. provide accounts payable list of the company; and

 4. generate a summary reports for the management.

Scope and Limitation

The Computerized Account Management System covers the process of preparing the pay

slip of each employee, the regular and job order employee, keeping of records safety and

computing the exact wages of each employee. Including the stored report list of employee such

as monthly salary, basic salary, overtime, Net pay, and deductions. The system also provides a

payable list where all expected expense and all expense of the company are recorded. The

proposed Account Management System for Eagle System Inc. will generate pay slip of

employees, payroll register of regular and job-order employees, and payroll form for every pay

period. With the use of this new system, computations and gathering are all accurate, data

manipulating and processing are expedited, report generations are faster and security for the held

are better, and consume less office space.

The proposed Computerized Account Management System for Eagle System Inc. Not

supports web based operations and does not monitor the attendance of each employee.
 MATERIALS AND METHODS

Materials

The proponents will use the following software for the development of system; Visual

Basic (VB.6.0®) for the primary programming language, and MS Access for the database.

Methods

The V-Model demonstrates the relationships between each phase of the development life

cycle and its associated phase of testing..

Proponents will use V model because it can test every detail on the sequence. Testing was

done to check if all the function is working individually and working as a group. Proponents

easily understand the flow and procedures included in the V model.

 Implementation
and maintenance

Requirements Acceptance
and analysis Testing

System Design System Testing

Program Design Unit and

integration testing

Coding

Verification Phase Validation Phase

Figure 1. V-Model
 The proponents used the (Input Process Output) IPO Diagram (Fig.2) to specify how the

system will process the input data and generate its output.

Requirements Analysis. The first responsibility of the proponents is to determine the

requirements of the client and its problems involve using a manual payroll. The proponents

asked question to the employees and accountant regarding to the process in computing the salary

of the employee. The proponents also conducted an interview (Appendix B) to the company’s

manager and accountant. Through gathered information, the proponents can analyze the problem

of the company and that will be the time the proponents will give a sets of solution. This phase

will be the basic guide of the proponents to meet the customer demands.

System Design. The purpose of the design phase is to specify a particular software

system that will meet the stated requirements. Again there are usually many ways to build the

specified system. The proponents will have an idea in the coding phase, which follows the design

phase, a particular system is coded to meet the design specification.

 INPUT PROCESS OUTPUT

List of employee Provide a Stored employees

names computerized account information in the
for the employees database

Compute the salary Computed salary

Salary of employee
automatically

Automatically compute Computed payable

List of payable bills
all the payables bills bills
Provide a
computerized form for
recording of stocks

Figure 2. IPO (Input Process Output) Diagram

 Program Design. During the program design, the proponents specified the features of

each object in the interface. In this phase, certain program design specification like interface

design, system functions must follow in order to obtain the requirements needed.

Coding. In this phase, the proponents followed all the procedure and program design will

convert into codes. The study covers programming language such as Visual Basic ® (VB .6.0) in

terms of object oriented programming that features program inheritance where system can

upgrade the functionality. The support of the system database is handled by MySQL®.

Unit Testing. Every time the proponents finish a part of the application they should test

this to see if it works properly. Unit testing phase the proponents will easily determined and test

each function of the system (Appendix C).

Integration Testing. In this phase it ensures that each component works together as

describe in the system and program design specification. Once the information is passed among

components in accordance with design, the separate modules will be tested together to see error

in the system.

System Testing. After the integration testing the respondents will evaluate the system by

conducting survey. The survey instrument was adopted from ISO 9126. Questionnaire is

composed of seven (7) criterions; Functionality, Reliability, Usability, Efficiency,

Maintainability, Portability and All Characteristics. The instrument was evaluated using a scale

of one (1) to five (5); 5-Outstanding, 4-Very Satisfactory, 3-Satisfactory, 2-Fair and 1-Poor.
Researcher made revision to formulate appropriate questions based on the objectives of the

study. Revision occurred in the functionality criterion only (Appendix C).

Acceptance Testing. The proponents will allow their client to use the system and the

proponents will ask questions, suggestion and also if they still want to change something in the

system, for the better improvement of the system validate whether the system is what they

really wanted (Appendix E).

Implementation and Maintenance. In this phase, the proponents will implement the

develop system to the company and checked it regularly as for the maintenance, to be sure that

the system has no problem.

The accountant must check the system regularly to be sure that the system is 100%

working and accurate in computing the records of employee. The proponents will also give a

user manual for the system if there will be questions they just have to look at the manual and

follow the instructions.