Computerized Payroll System Essay Sample

Computerized Payroll System Pages Download
Pages: Word count: Rewriting Possibility: % ()

1.0 Introduction

2.1 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. There are several ways on how to process a payroll. Payroll processing is one of the many aspects of the company’s operation wherein the advancement in technology can be applied. It involves various steps such as monitoring of time-in and time-out of employees, determining the amounts due to each employees and withholding parts of it, intended for payroll taxes, employee benefits and loan. Organization which have very few employees performs payroll manually while multi-national organizations which have become too large to perform such manual task uses software, or integrated modules to perform the task.

The manual payroll system requires payroll processing to be done completely by hand. Therefore, time card, wages and payroll tax computations; wage garnishments; and deductions are done manually. Furthermore, paychecks and pay stubs are handwritten or printed on a typewriter. The main disadvantage with this system is it is high room for error. The more manual computations the payroll representative has to make, the more errors she can possibly make. Furthermore, it is time-consuming because to ensure the payroll is accurate, she has to triple-check the data before printing checks. Even then, it is also possible to miss errors. Paper filing is required with this system, which can create clutter. It is likely that numbers of problems occur. So it’s no surprise that many businesses opt to use computer software to gather and aggregate payroll data.

A computerized payroll system performs the same functions that manual methods of payroll do. It stores employee data, such as names, addresses, social security numbers, pay rates and withholding allowances of each person. It calculates payroll taxes and deductions and keeps all data up-to-date after each pay period. Computerized payroll software automates many functions, which saves both time and resources. For example, it automatically calculates figures, such as employees’ earnings, based on inputs. Though some data must be collected and input manually, such as new hire information, the computerized system keeps it organized so you can access and update it electronically as needed. Computerized payroll systems also decrease error rates as most of the processing is performed by the computer instead of humans.

With this development, MARGIL Company who was engaged in selling second hand goods, wishes to adopt an advance payroll processing system to answer the difficulties and problems their payroll accountant and employees are presently encountering.

2.2 Statement of the Problem

2.3.1 General Problem

* How to improve the current manual payroll system of MARGIL Company to be a reliable, fast, accurate and secure advance payroll system.

2.3.2 Specific Problem

* Hard to manage employees records and payroll
* Inaccurate output of reports and consume a lot of time in preparing the salary of every employee

2.3 Objective of the Study

2.4.3 General Objective

* The study aims to provide reliable, fast, accurate and secure advance payroll system of MARGIL Company by proper time monitoring, fast and accurate salary computation, detailed pay slip and fast report generation, with a secure backup of reports and other information regarding payroll

2.4.4 Specific Objective

* To provide file maintenance module to store all files and records of all employees of the company and provide report module that will automatically generate the reports. * To provide payroll computation module that automatically compute the salary of the employee.

2.4 Significance of the Study

Upgrading your payroll system can benefit your business in several ways. Computerized systems are easy to use and don’t require your human resources staff to have in-depth familiarity with an aging, complex or obsolete payroll system. This reduces the amount of time managers and human resources staff need to spend on payroll. Employees can receive their paychecks more quickly and with a reduced likelihood of error. Computerized payroll processes save payroll professionals an enormous amount of time and effort. Here’s a closer look at the benefits of computerized payroll system and its beneficiary.

Management of the Company
* Computerized Payroll System offers management of the company a variety of other benefits. It can cut down on the process of data gathering, information processing, and disbursement and reporting. It’s easier to add new employees and make salary adjustments or record when an employee quits or is terminated. If tax rates change, your tax tables can also be automatically updated in a computer-based system.

The Person Preparing the Payroll / Accountant
* His / Her worked load will be lessening specifically in salary computations.

The Employee
* Since the system will provide fast and accurate computations, the employees will received the correct and accurate amount of the salary and it will avoid the delayed payments.

Program Developers
* This will serve as a test for the developer’s ability to analyze and how to solve the mentioned problems. It will also help to enhance their knowledge and to prepare their selves as a future programmer.

2.5 Scope and Limitation of the Study

The Computerized Payroll System of MARGIL will only focus on the following:

* Monitoring of the time-in / time -out of employees using username and password – generated logins and log outs. * The computation of employee salary such as basic pay, allowances, government premiums, loans, withholding tax and other benefits provided for regular and non- regular employees. * Generation of pay slip which will produce detailed and itemized amount for basic pays, deductions, and loans. * Generation of report that will provide a pay slip, employee record, employee on leave report, monthly and annually SSS , withholding tax, Pag-Ibig contributions, loans payment summary and payroll summary. * Updating payroll system upon hiring and termination of employees. * Providing secure back- up reports and other documents that are sufficient for payroll computation and generation. * User security will also be provided.

* The system will run on a LAN set up , with visual basic 6.0 as the programming language and Windows Vista, Windows XP and Windows 7 as the operating system.

Search For The related topics

  • wage
  • Olivia from Bla Bla Writing

    Hi there, would you like to get such a paper? How about receiving a customized one? Check it out

    Haven't found the Essay You Want?
    For Only $13.90/page