CHAPTER ONE

1.1 INTRODUCTION

Payroll Management System is the administration of the financial record of employees' salaries,
wages, bonuses, net pay, and deductions. This project is carried out as a partial fulfillment of the
HND in Computer Science. Nowadays this kind of application is very essential for any small or
medium sized organization. An employer, regardless of the number of workers they employ,
must maintain all records pertaining to payment system digitally. To complete the project we
have investigated the current system of Polytechnic of Ibadan and finally we are able to establish
such a system which automate all the process of a typical pen and paper based payroll
management system. With this system it is very to organize the whole employee details and their
basic salary, their increment, conveyance allowance, automatically adjust the overload, advance
payment and subsequently generate complex reports from these information.

1.2 STATEMENT OF THE PROBLEM

The current payroll management system at Ibarapa Polytechnic, Eruwa exhibited a lot of
ineffectiveness and inefficiency that had farfetched impact on the decisions taken by
management. The system, which was manual that is based on manual based (using ms-excel) to
calculate salary and other information of employees, keep records of these data and analyze
results, had weakness that needed IT based solutions. The system was characterized by delays
and sometimes failure to access historical records, errors were witnessed in entry and manual
analysis of results, secrecy and confidentiality of records lacked because unauthorized persons
could easily access the records. Therefore, management decisions were not taken based on facts.
Under such a system, another challenge to management was quick generation of reports
pertaining to the big number of employee base. Indeed the application of IT-based solution in
improving the system was imagined. Therefore, the existing system was reviewed and an
effective payroll management system designed to assist management in implementing its
strategic plan in order to achieve the overall mission, goals and objectives.
Concerned persons of current system state that the traditional methods of payroll management
have resulted into incomplete and inaccurate data in many cases. Incompleteness has resulted
from lack of printed forms, unwillingness of staff to complete forms as it is time consuming and
sometimes loss of completed forms prior to data entry.

1.3 JUSTIFICATION OF THE STUDY

Considering the above problems associated to manual method of payroll management,
web based payroll management will be the best alternative for companies and organizations

It will help eliminate the stress and time consuming problem of the manual method of
storage of complains of the staffs.

There will be a standard database for the payroll being made, this will make the retrieval
of the staff and payroll details be easy and well précised.

It will eliminate the need for the staff to physically go to the payroll master or HRM to
make their complaint since it is a web based. They can easily do it at their own convenient place
and time.

1.4 AIMS AND OBJECTIVE

The main objective of the study is to create an effective payroll management system in order to
assist in the management of creating salary sheets with ease and accurately of every employee in
the organization and generate report accordingly in no time which is convenient, time saving and
more importantly with a minimal chance of error.

1.5 SCOPE OF THE STUDY

This Application works in Multiple PC’s installed on multiple Computers by sharing same
database by which users of different department can use it sitting at different locations
simultaneously.
We have made an Application where the database will be hosted in order to manage the all
departments which will be located in different places and by keeping domain of Application as
Online.

1.6 METHODOLOGY

The computer languages and programming computer aided software engineering tools used are:

 HTML: To develop the interface of the website.

 Ajax: To make the site more dynamic and interactive.

 JavaScript: To validate users’ input and also to make the web more user-friendly.

 CSS: To add styles to HTML code.

 PHP To handle server-side querying and web page information retrieval.

 MySQL: To store data retrieved by the web.

 Photoshop CS3:To make designs and edit images used on the web. This makes the
system to look attractive

 WAMP server: To handle the database and used as platform for internet server.

1.7 DEFINITION OF TERMS

APACHE: Free available web server. This allows MySQL and PHP to run on it. PHP: Hypertext
Pre-processor. It is a widely used general- purpose scripting language that is especially suited for
web development and can be embedded into HTML. Above all its free that is open source.

MySQL: It’s a relational database management system (RDBMS) that runs as a server providing
multi- user access to a number of databases. 5
PHPMyAdmin: It is open source software written in PHP with the intention of handling the
administration of MySQL over the World Wide Web. It also supports wide range of MySQL
operations.

JAVASCRIPT: It is a scripting language that used to make web pages interactive.

HTTP: Hyper Transfer Protocol (HTTP) is a set of rules for transferring files (text, graphic,
images, sound, video and other multimedia files) on the world wide web (WWW).

Employee Data: This is the employee's information in the company. It consists of the
employee identification number, employee name, pay rate, pension plan flag, and union
member flag.

Payroll Records: The payroll records are used to store each month’s hours worked, and the
rates for that month.

Rates: Rates consists of the percentage that would be deducted from the gross pay depending
on union membership status, pension plan, state and federal tax. Each employee can have a
unique hourly rate.

Payroll Ledger: This is a table that shows the calculated pay of employees and the month in
which they earned the pay. The ledger can be filtered by name, identification number, year and
month.

Hours Worked: This is the number of times that an employee work in a month. The hours
worked is used to calculate the pay that an employee will receive for that month.

Net Pay: The net pay is the final salary amount that would be given to the employee after all
the deductions are subtracted from the gross pay. The deductions include among others taxes,
union member dues and pension plan.

Gross Pay: The gross pay is the amount that the employee earns before the deductions
are subtracted.

Deductions: Deductions are made up of taxes, union membership dues, pension plan. They are
subtracted from the gross pay to give the net pay which is the employee's final pay for the
month.
Taxes: The taxes consists of the state dues and federal dues. A percentage of the employee's
salary goes to state and country.

Union Membership Dues: This is meant for employee's that are union workers in the
company. They get to pay a percentage for union dues. An employee can be a union member
and later change status to be a non-union member.

Pension Plan: Employees that opted to use the pension plan of the company get to pay a
particular percentage of their pay in preparation for their retirement.

Payslip: These are similar to pay cheques. They allow the employee to have his or her pay
printed out on paper so that they can cash it.

Year-To-Date Total: The year-to-date total is the summation of all the previous earnings till
the month before the current month.