Chapter 1
INTRODUCTION
The development of information technology is influenced by the high demand for
accurate, effective and efficient technology and information systems. The use of
computers is very important, especially for the data processing to minimize the level of
errors in entering data, recording data and making reports. Companies need information
systems that can help in processing data. There are several important activities in a
company, ranging from recruitment, training, assignment, compensation (payroll), and
performance between companies and employees. One part of the information system that
wanted to be developed in order to handle the problems that often occur in the company
is the payroll system and its presence. The payroll system is a series of business activities
related to continuous data processing. The payroll information system is able to carry out
the automatic payroll calculation process where the salary components such as basic
salary, overtime, leave, and attendance data are very important things in an organization,
because it is one of the considerations in wages (Soegoto, 2019).
As the world faces rapid change in technology nowadays, there is no doubt that
payroll processing system, a core component of human resource management, is also
experiencing a transformation into a digital platform. When payroll process is automated,
the tedious and clunky manual calculations of employees pay would require less work,
effort and time especially for big organizations. The idea of taking control of the process
through innovation of computerized payroll system is advantageous as it minimizes
human calculation errors, increases data security from breaches, and enhances
competitiveness (Rusly et al., 2019).
Background of the Study
Payroll encompasses every employee of a company who receives a regular wage or other
compensation. It is the sum of all financial records of salaries for an employee, wages,
bonuses and deductions. Some employees may be paid a steady salary while others are
paid for hours worked. All of these different payment methods are calculated by a payroll
specialist and the appropriate paychecks are issued. By law, employers are required to
pay employees for their services rendered; through the payroll system, the processing of
this payment is possible. (Macesay, 2013) . Payroll has been designed to remove the time
and effort that is normally associated with payroll and to provide a direct and seamless
operation that enables the employer to handle all staff and payment processes in a simple
and accurate manner. Payroll software allows organization to generate pay slips and
salary register, based on the attendance of the employees taking care of leaves, overtime,
allowances, loans, advance, bonus, encashment and other standard deductions. By
definition, management consists of all activities undertaken to secure the accomplishment
of work through the efforts of other people. Both large and small firms require good
management in order to achieve success. In the typical small business that entails group
effort, the manager provides direction by activities that are described as management
functions. There’s no other business process that’s more unfavorable towards employee
satisfaction than incorrect and improper payroll management. And this very same
business function can help reduce the impact on the environment through a paperless
system. Introducing electronic or online payroll programs does not only make your
payroll management more efficient, it is also a move to go green. With an online payroll
solution, you ensure timely processes and become more earth friendly, aside from
increasing staff productivity and cutting costs.
System Project Context
The payroll management system deals with the financial aspects of employees salary,
allowance, deductions, gross pay, net pay etc. and generation of pay slips for a special
period. The outstanding benefit of payroll management system is its easy
implementation; other advantages of payroll management system are its extensive
features and reports.
Objectives of the Study
This research aimed to develop a Computerized Payroll System that will
minimize human calculation errors, increase data security from breaches, and enhance
competitiveness.
To accomplish the above objective, this study specifically aims to:
1. Develop a Computerized Payroll System that can:
a. Update master payroll file
b. Update tax rate and deductions
c. Validate time and attendance data
d. Prepare payroll
e. Disburse payroll
f. Calculate employer-paid benefits and taxes
g. Disburse payroll taxes and other deductions
2. Evaluate the acceptability of the system using the adopted survey instrument
based on Perceived Usefulness and Ease of Use (Davis, 1989) and Computer
System Usability (Lewis, 1995).
Significance of the Study
The online payroll management system (OPMS) will be a great help and beneficial to the
Owner, Staff and other subordinates of NOPC.
Negros Occidental Provincial Capitol
The admin of NOPC and their staff will have an essay access and to the system
anytime they are able to make to the information of payroll ongoing. Check the progress
of every payroll system.
Admin
Who propose a payroll for the employee, has all access to the system
HR/Accounting
The one who calculate the employee’s salary
Staff
Encoding all the data payroll, task activity and employees information.
Operational Definition of Terms
The proponents define the following terms of operationally based on their use in the
study and the system.
Accuracy - The ability to work or perform without making mistakes.
Admin - A person who has all the authority.
HR/Accounting - The one who is incharge of uploading payroll/dtr with calculated salary
of employees.
Chapter 2
REVIEW OF RELATED LITERATURE
Employee Attendance and Payroll System Using Image Capturing and GPS
Tracking
This system provides multiple user data access. It involves keeping track of hours
worked and is capable of keeping a record of employee data including their pay,
allowances, deductions and taxes on monthly bases so that fresh definitions are reflected
from the month onwards, which leaves all the past data intact. The payroll system is
advantageous as it provides a user-friendly environment and also increases security and
minimizes human calculation errors. The system provides effortless and fast access to
each and everything (Chavan et al., 2017).
Leave and Payroll Management System
Management of leave and payroll are critical operations for each institution as it
has effect on payment of staff members of any institution and also to complete it
accurately and on time. Manual payment calculation of staff members is too complex and
it even takes lot of time and also requires lot of efforts. Similarly, for managing the
entire task related to leave such as requesting for leave and approval of leave, the
proponents considered leave management system as the solution. The tasks which can be
processed using the Leave Management module are applying for leave, viewing leave
history, viewing leave stats and granting/rejecting leave applications. The Payroll
Management module consists of tasks such as viewing payroll & tax deductions and
automatic tax calculation (Singh et al., n.d.)
Review of Related System
A payroll system was developed by an expert programmer at the past year. A Philippine
based programmer was established 2009 and specialized by many programmer for
various platforms. The goal is to avoid manual computing of employees salary.
Summary and Synthesis
NOPC summarize information from selected building regarding the benefits and salary
associated with various employees counting technologies as reported by users the
synthesis provided advice for company considering NOPC system. At the time manual
computing employees salary was the most privilege technique in the company industry.
This report documents the state of the practice in terms analytical tools and
technologies for computing employee’s salary and other employee’s data.
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