INTRODUCTION
Background of the study
Payroll is the sum of all financial records wherein business or companies
pay its employees for work performed during a specific period of time. A payroll
system involves everything that has to do with the payment of employees and the
filing of employment taxes on a computerized manner. A payroll system may be
manual or computerized and handle in-house or outsourced to another provider.
The payroll process typically includes calculating employee pay, recording
payroll transactions and determining and paying payroll taxes. Without
implementing this kind of system, the company would have difficulty in computing
for payments for services or work done by employees. Payroll system isnt just a
requirement nowadays. It is now essential to companies.
Computerization is a control system that manages process in industrial
workplace. It reduces human errors and processing time, thus it can boost
productivity and resulted into high quality product produce. In Information System
(IS), computerization is concerned about interrelating different but interdependent
transactions. This can result in a system with well-integrated processes that can
perform much faster and more accurate than a manual system.
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General Problem
The GEMPHIL Technologies Inc., is using a system that is out to date,
often confusing and sometimes lagging, and that it is not user friendly. The
system also is not liable or aware of the changes of the employees information.
Specific Problem
1. The system of the GEMPHIL Technologies Inc., is not updated.
2. They are using time cards when having a payroll check.
3. They are not aware on the changes of the employees information.
Objectives
General Objective
As the students of Information Technology, we are motivated to build a
new Payroll system to replace the existing system that is out to date.
Specific Objectives
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Conceptual Framework
INPUT
PROCESS
OUTPUT
Make a research
Conduct an interview
Research from:
Books,
Internet and
Initial Interview
Computerized
Payroll System
for the
employees of
the GEMPHIL
Technologies
Inc.
Figure 1.0
This figure shows the conceptual framework or a summary of our
proposed system for GEMPHIL Technologies, Inc.
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Definition of Terms
The following are defined operationally and technically for clear
understanding of the terms used.
Operational Terms
Bundy Clock This refers to a clock card machine or punch or time
recorder is a mechanical (or electronic) time piece used to assist in tracking the
hours of an employee of a company.
Daily Time Record This refers to a record of how a persons time has
been spent. It is used to calculate pay, asses the efficient use of time, or charge
for work done.
Deduction This refers to business expenses or loses which are legally
permitted to be subtracted from the gross revenue of a firm in computing its
taxable income.
Employee This refers to a person who is hired to provide services to a
company on a regular basis in exchange for compensation.
Gross Pay This refers to total of an employees regular remuneration
including allowances, overtime pay, commissions and bonuses, etc.
Net Pay This refers to the remaining amount of an employees gross
pay, after deductions, such as taxes and retirement contributions, are made
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Technical Terms
Administrator - somebody whose job is to manage the database
Data - individual facts or items of information
A Proposed Computerized Payroll System
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the
database
MS Access - a relational database management system from Microsoft
that combines relational Microsoft Jet Database Engine with a graphical user
interface and software development tools
Program - The computed salary and wages of the employee
Salary - the compensation received by the employee in either 15 TH or 30TH
of the month
Software - the programs, symbolic languages that organize the
performance of the hardware and through its process
System - an assembly of computer hardware, software and peripherals
working
together
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CHAPTER 2
REVIEW OF RELATED LITERATURE AND STUDIES
This contains the discussion of the review of related literature and studies
that has a bearing on the totality of this study.
Related Literature
A. Foreign Literature
Information system takes a very significant role in management life. It greatly
affects and interferes in the management decision, planning, and the
development of new products and or services. The increasing range of
information system connects to a transformation of an organization from using
the traditional or manual information system to a computer base (program and
software) system.
Mike Johnson (2011) defines information system as a set of interrelated
elements that gather, retrieved, process, store, and disseminate information to
reinforce decision making and control in an
organization.
This
definition
indicates that the information system is very important organizing data and
information of the organization
Sherman and Watson (2012) stated that information system as an organized
combination of people, hardware, software, communication networks, and data
resources that collects, transform and disseminate information in an organization.
A Proposed Computerized Payroll System
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The definition indicates that the main focus of the information system or
automated system is broadly detailing on the idea, and organizing information
pertaining to either individual groups, or organization.
Philip Morris (2014) on this part, explains that information system is
composed of inputs, processing units (process, store), and output (sources). In a
broader sense, the information system consists of operations and management
applications to support transactions, processing or decision making activities at
different organization level.
Automated payroll system is considered an information system for it stores
data of the employee receiving its wages and salary, daily time record or
attendance, and other benefits which an employee has to received.
According to Great Martin (2015), management information system plays a
very vital part in making an organization a success or failure. Great Martin (2015)
stated that in designing a system, the following should be taken into
consideration. It should provide a modular architecture, It should have a
coordination of interface, the interface between different modules should be
clearly labeled in the terms of content, frequency, and mode of operation. In
automated payroll system, the manner of doing such is the same. The program
or system should follow a process or a step by step procedure in order to arrive
to a specific function within the system. The design of the must be in conformity
with the existing tools of information technology.
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Related Studies
A. Foreign Studies
In the study conducted by George Carlton (2013), it aims to lift up an
understanding on the issues and concerns with regards to the management of
information and securing information. The study was conducted by assessing the
analysis, design, and management of computer based information system in two
large organizations like British National Health Service Hospital Trust, and a
Borough Council. In this study, George Carlton adopts the research methodology
of interpretative mode of inquiry, where the system was evaluated on the context
of business environment. The finding in the study shows that computer based
information system affects the integrity and totality of the organization.
The automated payroll system uses payroll software to compute all wages.
Payroll software, such as QuickBooks, Pensoft, Z-Pay, Ultipro and Sage
Peachtree calculated gross-to-net earnings based on the data the payroll
representative inputs. Thus, if a terminated employee is due severance pay but
the payroll representative neglects to make the entry, the system will not pay it.
Typically, the system is reliable so long as the entries are correct. The automated
system performs all types of payment; hourly, overtime, double-time, salaries,
commissions, bonuses, pay raises, retroactive pay, wage deductions, auto
payments and tuition reimbursements. Notably, the automated system eliminates
manual paycheck writing. The system automatically generates paychecks and
stubs and enables direct deposit.
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B. Local Studies
In the study conducted by Ron Richardson (2013), she pointed out that
information system helps to produce record, administer and corresponds data for
the operational and preparation activities of the organization. The likes of
automated payroll system is planned, design and developed to convene positive
specific actions and is built on the objectives that there are management
identification of the need that will sufficiently addressed the problem in manual
way of doing the system.
John Devin (2015), on the other hand stated that the record management
system which also being to the family of information system is an administrative
system which seeks to control, distribution, filing, retrieval, storage, and disposal
of records which created or received by an organization during the operation.
Nowadays, many payroll system implemented in different companies here in
the Philippines because payroll system is one of the most important in
establishing a business firms on how you provide the right and appropriate
benefits for the employees in the company. Business firms must operate within
the boundaries of laws and government regulations, Laws have been developed
not only to protect consumers but also to promote competition among business
and industries. Over half a century on, its fair to say that payroll is now one of
the most commonly automated business operations; and certainly the most
frequently the most used HR Solution that maintaining payroll record is one of the
most important financial tasks in any business. A great payroll is really one of the
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pay and review their information from the database. And with updating of the
reports that can be viewed through the internet, the manager can view the recent
activities within the proposed system.
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Synthesis
Based on the research or related literature and studies which tackle much on
the information system, automated payroll system happens to one in the family of
information system that store, organize, and process data. In the same manner, it
can be conducted that payroll system implemented for the purpose of automating
the payroll system can give or provide benefits to the business organization in
the same way that other establishments are benefited with the aid of computer
based payroll system. Furthermore, it can also be great help to the payroll
personnel since data will be stored confidentially and data will be generated on a
printable format.
The similarities of the existing and the proposed system are that they contain
a data base of salaries computation together with its deduction and others. The
difference is that the proposed system will contain the database of the
employees and faculty, and also the process of computing a salary based on the
generated report taken from the report generated by the attendance monitoring.
There are many variations of making a computerized payroll management
system on how the client or the owner of the company wants to operate within his
business like the study in Krizalen enterprises that they used a Bio-metrics with
online data analytics dashboard to view information or save the online studied
since 2014 and also the research entitled intuit payroll of intuit, INC. Since 2013
claims that with the use of payroll systems computations of pay checks or
payslips are precise and always on time, taxes are clear and liquefied, and
tracking of employee records are easy and organized. The revolutionary systems
A Proposed Computerized Payroll System
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regarding payroll helps to eliminate tasks made by man and therefore also
eliminating the risk of human errors. As well as payroll outsourcing company,
Oasis outsourcing (2013) believes that through web-based payroll systems, the
Management can access information from in and out of the office. But with
the limited access and multiple levels of security options can provide reliable and
accurate updated records and computations. And also the study of payroll
entitled automated daily time record and payroll system of Laguna water district
(2004) recommended to use a hardware such as iris scan, thumb mark scanner
and other Biometrics innovation for additional security and further technology
advancement should be taken into consideration.
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Chapter 3
Research Methodology
Research Design
The research design to be applied in this study is the experimental and
descriptive methods. Descriptive research describes and interprets what is. This
methodology goes beyond more gathering and tabulation of data and it also
involves the interpretation and analysis of the meaning or significance of what is
described. The experimental research design is to be used to evaluate the
proposed software using questionnaires.
All the necessary data and information for this study were gathered from
unpublished theses, books, and articles from the Internet.
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Figure 3.0
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1.
planning and systems analysis phases of the System Development Life Cycle
(SDLC). User, managers, and IT staffs members discuss and agree on business
needs, project scopes, constraints, and system requirements. It ends when the
team agrees on the key issues and obtains management authorization to
continue.
2. User Design Phase - during this phase, user interacts with system
analysis develop models and prototypes that represent all system processes,
inputs, and output. The RAD groups or subgroups typically use a combination of
Joint Application Development (JAD) techniques and CASE tools to translate
users needs into working models.
User
Design
is
continuous
interactive
process that allows users to understand, modify, and eventually approve working
model of the system that meets their needs.
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The proposed study covers the administration and the payroll GEMPHIL
Technologies Inc. The respondents are selected by means of purpose sampling
which is the desired of the proponents base on the requirement of the system.
Instruments Used
A two part self-administered questionnaires shall be used to evaluate the
software and existing method. Information of the respondents is shall be
gathered on the first part of the questionnaires. Data regarding evaluation of the
software to determine line accuracy, reliability, and convenience of the software
as compared to the evaluation of the existing method based on the same criteria
shall be gathered on the second part of the questionnaire.
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Problem Areas
The GEMPHIL Technologies Inc., is using a system that is out to date,
often confusing and sometimes lagging, and that it is not user friendly. The
system also is not liable or aware of the changes of the employees information.
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Context Diagram
Fig. 3.0
This figure shows the context diagram of the existing payroll system of the
GEMPHIL Technologies Inc. In which, the payroll system flows through a time
card, this was generated in the time clock. In the system, the employee will
receive the tax form and also the payroll check, and after this process, the payroll
report was forwarded to the accounting department.
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Fig 3.1
This figure shows the top level diagram of the existing payroll system of
GEMPHIL Technologies Inc. As shown in the process, it is confusing, out to date,
lagging, and not user friendly. The system is not updated in terms of employees
information. Therefore it was not reliable in getting information.
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Context Diagram
Fig. 3.2
This figure shows the context diagram of the proposed payroll system for
the GEMPHIL Technologies Inc.
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Fig. 3.3
This figure shows the top level diagram of the proposed payroll system for
the GEMPHIL Technologies Inc.
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APPENDIX A
(Letter)
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_____________,
_____________
_____________
Dear Madam,
We, the Students of ASIATECH College namely, Carl Arvin A. Dimas, Jomar M.
Rebulado, Mark Diether G. Tangcalagan and Jonas N. Constantino taking up
Bachelor of Science in Information Technology, currently enrolled in System
Analysis and Design would like to ask a permission if you may allow us to
conduct a personal interviews regarding to the Payroll System of your company
GEMPHIL Technologies Inc. The information that we gathered will be a big help
in our program System Analysis and Design.
Attached here is the list of Interview Questionnaires, Information Data and
Registration card that can prove that we are students of Asia Technological
School of Science and Arts College.
We are hoping for your response on our request, rest assured that the
information we gathered is highly confidential and for studying purposes only.
Thank you so much and God Bless.
Sincerely Yours,
Carl Arvin A. Dimas
Mark Diether G.Tangcalagan
Jomar M. Rebulado
Jonas N. Constantino
Noted by:
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APPENDIX B
(Questionnaires)
PAPER INTERVIEW
Name (Optional):________________
Age: __________________
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Gender: _______________________
Occupation: ____________
1. Company Background:
a. What is GEMPHIL Technologies Inc.?
__________________________________________________________
__________________________________________________________
_____________________________________________
__________________________________________________________
__________________________________________________________
_____________________________________________
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APPENDIX C
(Screen Layout)
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Screen Layout/Specification
Fig. 3.0
This figure show above is the start of the systems operation. The program
will ask for a valid Employee ID and password. Both inputs are in strings format.
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Fig. 3.6
This figure show above is the start of the systems operation. The program will
ask for a valid Admin username and password. Both inputs are in strings format.
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Figure 3.7 Lets you choose if you want to access Employee management form
or Payroll management form.
Fig. 3.7
The picture shown above lets you manage Employee information. The
search button lets you search for existing records saved on the database; the
edit button next search button lets you modify information about the employee.
Example scenario is when a woman employee gets married, and its middle and
last name should be modified as soon as possible to avoid misleading and wrong
information printed on the payslip.
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Fig. 3.8
This will show if you choose the payroll picture on the right side of the
choose form. To start with the process, youll enter the started days until the end
work date. Once you clicked the find button, Employees information will show up
on the left side of the form with their corresponding ID and Name. Once you
clicked on the ID, The employees payroll information will show up to their
corresponding text boxes and data grid view. Rate per hour, Allowance, and
withholding tax are constant. (Based on the interview). When you clicked
compute button, Gross pay and Net pay are calculated. Then you can print the
information now.
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Fig. 3.9
This is now the printed payslip and can now be distributed to the employee.
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APPENDIX B
(Feasibilities)
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Economic Feasibility
This is where the feasibility could be established by conducting a Market
Analysis or Cost Benefit Analysis. The researcher could choose the appropriate
tool. If the proposed software is costumed for a particular company and there will
a basis for the computation of the operating cost, benefits. Return on Investment
(ROI), Payback Period. The researcher should present under this subsection, the
formula he/she will use in establishing the economic feasibility of his/her studies.
Operating Costs
Operating costs stated the annual of personnel expense, supplies and
equipment costs required for the existing and proposed system, the use of this is
to compare both of them to analyze which save more. The total annual cost for
existing is Php. 387,784.20 and in the annual cost for proposed is Php.
196,703.95.
Development Costs
Development cost is incurred during the development of the system are one
time investment, its include the Adequate Software, Hardware requirements,
labor cost, supplies cost, electric consumption, food and transportation cost. And
total development cost is Php. 22,956.57.
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Payback Period
Net Saving
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The end cumulative present value formula refers to the proceeds obtained
from selling the investment of interest. Return on investments is a very popular
metric because of its versatility and simplicity is a very popular metric because of
its versatility and simplicity. That is, if an investment does not have a positive
ROI, or if there are other opportunities with higher ROI, then the investment
should not be under taken.
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