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Payroll System Essay Sample

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Introduction of TOPIC

Chapter I
Introduction
Today in our generation, the innovation in technology is fast approaching there are many tools and techniques especially the creation of the computers. Computers are the most usable machine in our times, it can perform various task and operation like storing information in a digital format and execute a list of instructions.

Computers also enforce security to the information stored depending on the user. Thus making a safe and accurate storage and you can manage and monitor the data every transaction better rather than using a manual keeping of records.

Many businesses or company is engage in the world of technology because they think their business will become effective and efficient with the use of computer. Through the existence of technology, companies today prefer to use computerized system to its transaction in order to stay competitive. This have made companies and business entities to increase its profitability and as well as to limit its resources due to the help of modern technology. Technology also introduced local businesses not only to the national trade but also to the global market.

One of the systems used by these business entities is the computerized payroll system. Computerized payroll system is a personnel data file and records of the companies’ employees that generates necessary information in connection to his salaries and wages. A computerized payroll system will not only resolve difficult problems but also it will provide fast process and accurate calculation of the salary. Unlike on manual payroll system, there are possible errors that may encounter because calculations are made only by hand. Moreover, while with a manual payroll system you have to do everything yourself, a computerized payroll software will calculate automatically all pay frequencies, employee statutory deductions, contributions, and even bonuses. Basically, all you have to do is enter all the data upon which the deductions are based, and the system will handle everything else.

Computerized payroll system saves much time, resources and money that is favorable to the business itself. A computerized payroll system plays a very important role in keeping the record of the employee and monitoring their performance in the business.

Chapter II

Background of the Study

Larazi Junk Shop Enterprise started as a small business which is mainly engaged in buying and selling scrap materials such as bottles, metals, plastics, and papers. It was founded by a simple man named as Julius Larazi and his loving wife Teressa Larazi around October 1999, located at Brgy. Santo Tomas, Calauan, Laguna. These materials are then sold to larger companies. Their company reached its prosper as it became more popular on December 6, 1999, the birth of their daughter, Alyssa Larazi.

At first, the company has only a single truck that is used to transfer these scraps materials. And as time goes by, the said enterprise was able to gain profit by means of investing an appropriate sum of money and by the help of the owner’s relatives. Larazi had bought a track of land which serves as their warehouse that is use up to present in their business transactions. They also avail to buy five more trucks.

The said enterprise is currently using a manual system of payroll. Though companies’ accountants use computer application such as Microsoft Excel, they still need to gather necessary information to calculate the employees’ final computed salary. They use pads and calculator just to arrive at the each employee’s salary which is usually a slow process because it involves long hours of computation. It is time consuming, considering the fact that the time consumed maybe use by accountants to another important thing in connection to his duty in the company.

With this method, accuracy is also not being met due to negligence of some employees. In some instances, becomes the reason of fraud and data redundancy.

If this existing method be converted to an advanced payroll system, then, these problems can be lessened or even be eliminated. The time tracking of this system will provide more accurate information, and may result to a better working environment not only for the secretary but also in favor of the employees and the company’s management.

Mission and Vision

OUR MISSION

1. We aim to increase wakefulness of the recycling benefits for both the environment and the challenges our environment is facing together with the value added to the industries’ products through using recycled materials.

2. We will continue to create innovative recycling programs that exploit the recycling efforts of our business customers and the people of the communities we serve.

3. We will encourage a cost effective recycling waste diminution and materials reuse program which is feasible to manage and reasonably convenient for all.

4. We will make sure that our programs meet government necessities for environmental, health and safety standards.

OUR VISION

Larazi Junkshop will have sustainable recycling solution for selected materials that is a representation of excellence, which is environmentally and socially responsible and economically viable.

Tess Larazi
(Manager) manas

Organizational Chart
Henry E. Vega
Abiera Resty
Juancho M. Suarez
Rodante A. Marikit
Amado B. Magno
Simplicio A. Larazi
Gregorio V. Gonzales
Melchor C. Bregaste
Emil G. Centeno

Fernando Zamora
Serapio M. Ulan
Felito Santileces
Technical
Mechanical
Norwin S. Aurelio (Secretary)

Rey G. Villanueva
Ofelio M. Ulan
Eglecerio O. Santilla
Liason Officers
Emerzon G. Salazar
Rhummy C. Pelimer
Elmer Villegas
Richard L. Magno
Marlon Magno
Jesus C. Fernandez
Joel Doria
Reymar Coronado
Ramilo A. Comba
Armando Santileces
Ferdinand Zamora
Hilario Y. Bonozo
Alex B. Andes
Rolito L. Alberga
Felix G. Pacia

Danilo M. Valenzuela

Efren Bautista

Levels of Management

Manager – Manages all the transactions in the company. The one who is responsible in monitoring the employee’s performance and can access all the data and information in the system.

Mechanical: These include driver and those who is responsible for the repairing of technical problems like machine problems. This department mainly focused on the delivery and transportation of good (scrap) in warehouse to the dumpsite.

Technical – These includes helper or the laborer also the guards. This department is responsible for segmenting the goods (scrap) in the dumpsite according to their classification. They are the one who unload and load scrap in the trucks.

Liason officers – Those officers prepare papers for the company’s transaction. They manages some business needs and document for the company like the arranging of the paper for the PAG-IBIG fund of the employee. They handle the business external matters.

Secretary –He is the one who manages the data and credential of the employee. He can add, alter or even delete the data of the employee. He also monitor the performance of the employee, their attendance and absences. He manages the schedule and if the manager is not around he take over to the task of the manager.

VICINITY MAP

Chapter III
PROBLEM DEFINITION

Statement Problem

This study aims to develop and evaluate a project that will organize the record of the employee and the transaction of the employee regarding in their salary. Especially it aims to answer the following question to the respondent.

Specifically the study aims to answer ff. questions:

1. What are the problems encountered by the respondents in handling the current of recording the employee?

2. What is the assessment of the respondents on the proposed of payroll and record keeping of the employee?

3. Is there any significant difference to current system and proposed computerized payroll system for Larazi enterprise?

4. Is there a security enforce in accessing the record and information of the employee, what are the restriction of the user?

5. What are the cause/effect of the proposed computerized payroll system and the manual system?

CHAPTER IV
ANALYSIS

Objective of the study
In general, the study aims to provide and implement a better and enhanced computerized payroll system for the Larazi Junkshop. The system will also provide a convenience and more reliable information compare to its existing payroll system.

Specially, the enhanced Larazi Junkshop’s Payroll System must achieve the following:

1. To implement an accurate data for the computation of the salary

2. To enhance the record keeping of employees

3. To determine the differences of the current and proposed system

4. To determine the restrictions in accessing the records and information of the employees

5. To determine the cause/effect of the existing and proposed system

Scope and Limitation
The proposed study is only limited to the goal of providing computerized payroll system that has user-friendly interface and is able of generating weekly reports.

The said system can do an automated payroll system. Other than that, the system performs the employee maintenance as well as security options for the employees. It cannot generate a yearly report of payroll but only a monthly report. The system is not able of computing the advances of the employee, and so still requires manual calculation of the total net salaries.

The current payroll system can not generate weekly reports, transaction reports, and of low security and inaccurate data while the proposed/enhanced system will standardize all the required information.

The payroll system cannot perform the locking of payroll on the past months before the current one.

System Proposal
Research Title : Computerized Payroll System for Larazi Enterprise Name of Proponents : Jervin O. Pabroada
Marcelo Z. Ulan
Justine Sienes
Maribeth Molina

Software Description:

This system is used for the time tracking of the employee in the business.It includes the computerized “time-in” and “time-out” of the employee because the working pay is based on hours rate. We will also consider the overtime and under time of an employee. Provide a fast and reliable payroll system. For the owner to monitor the in and out of the their employee, the total number of hours spent by an employee. The administrator was able to see the payroll via the date, and must generate a ledger. This system will also serve as a record keeping system of the employee. In addition, we will have a weekly ledger because the owner pays the salary weekly, but we will have a monthly report

Possible beneficia

ries: Larazi Enterprise Accountant: will hold the audit of money that goes out.He monitors the

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in and out of the employee.He is responsible for creating an monthly or weekly ledger of the company.

Administrator (the owner of the business):
he has a control on all part of the system.He can view the document of the accounting department and can restrict the control of the accountant department.

Employee: their time in and time out will be computerized,and the time allotted for the attendance is not taking too long.The employee monitors the time he has spent in the company. Reason for conducting the study:

We conduct this study,to help the company in their need to have a fast and accurate payroll system for their employee.We see that the owner of the company is in need to view the outbound of money in his company.For the sake of the employee,under this payroll system,the employee is given beneficiaries like in SSS and GSIS loan.In addition this will monitor the number of hours of every worker or their corresponding penalty when absences is committed.

Importance of the Study:
To establish a system that will be used by the Larazi Enterprise for the payroll of their employee.This system will be made to replace the typical paper,ballpen and calculator(manual system).It is important for the employee so that their salary is given exactly on a right time.In this system,we hope to eliminate the flaws of an payroll system.

Chapter V
Structured Analysis
In this chapter it will discuss the difference between the proposed and existing system. In structured analysis there is a set of diagrams and graphical presentation that allows the analyst to build up a system design that is easily understood by the person who will use the system.

Description of Existing System
Technology has a big role in the world of business, in business institution than mainly use payroll. Nowadays computers have a large data computing capacity and also have data manipulating system. People believed that computer could use the traditional way of computing the salary computing and a great help to lessen the burden of secretary who computed the salary for the employee. The computer is being called the wonderful machine created by man because it process faster and gives accurate results in computing data in a small period of time.

The Larazi junkshop currently uses only a Microsoft excel for their payroll and employee information. The existing system can handle manual computation for the employee’s salary without using time tracking system they are only depending on their log book for the checking of attendance. On the other hand about the deduction, the SSS, Philhealth, Taxes for the BIR and for the cash advances are manually deduct by their secretary. Their currently using system cannot perform weekly and monthly reports they are only depending on the information based on their system.

Description of Proposed System
The proposed system will be use for time tracking of the employee in the business for the manager to monitor the time-in and time-out of their employee and the total number of hours they spend per week. It provides a fast reliable, secure and accurate payroll system. Unlike on their currently using system it generates weekly and monthly reports. On the deduction process it is automatically subtract for the total salary based on the SSS, Philhealth, Taxes and cash advances.

The employee will be given an user ID and password for the time tracking system which will be their pass to have an attendance and to view their payroll information, including the time-in time out and they can edit personal information. The proposed system is more accurate, precise, secure, fast, effective and efficient than the existing system.

DFD OF EXISTING SYSTEM

DFD OF PROPOSED SYSTEM

Data Dictionary

AccurateThe condition or quality of being correct, true, exact, free from error or flaws, correctness or precision and exactness.

ComputersMost usable machine in our times and always improve from time to time.

EffectiveRefers on how the program is successful.

EfficientAbility to accomplish or finish a work with a minimum expenditure of effort and time.

ErrorsFlaws or Failure when executing a program.

ExploitMake use of waste for better pupose.

FraudScam or deception or changing something on the information
without the consent of the management.

InnovationImprovement or modernization of something trough the use of technology.

ManualManual refer to the job of inputting or gathering of information using typicall or classical method.

ProfitIncome or earning earned by a company or an individual based on job or work.

ScrapsWaste or garbage collected by the company, it is used for recycling and making a new product. SecuritySecurity as a form of protection, are structures and processes that provide or improve security as a condition.

SoftwareGeneral terms for the various kind of programs used to operate a system.

StatutoryIn terms of payroll statutory is said to be the legal for employee deduction.

Time Tracking Detecting of time that will be saved on the database using the log-on system.

TransactionOperation of processing or implementing something to get a result.

Chapter VI
Requirements Definition

Technical Feasibility
Technology has a great influence on decision-making of a business. The technologies now a days can perform many task in short period of time, it can perform calculation, keeping of records and tracking of time of an employee. Having a good system on a company makes the transaction fast, accurate, including the security of information or files.

Visual Basic 6.0 out in mid 1998 enhanced in a number of areas including the ability to create LAN-based applications or systems. VB6 has been the most successful version in the history of Visual Basic, it has entered Microsoft’s ‘non-supported phase’ as of March 2008. Although the development environment is no longer supported, the runtime is supported on Windows Vista, Windows Server 2008 and Windows 7. Mainstream maintain for Microsoft VB 6.0 ended on March 31, 2005. Extended support ended in March 2008. In response, the Visual Basic user community expressed its grave concern and lobbied users to sign a petition to keep the product alive. Microsoft has so far refused to change their position on the matter.

A database management system (DBMS) is a software package with computer applications that control the creation, maintenance, and the use of database for a system. A system database is an integrated collection of data records, files, and other databases objects. It allows organizations to conveniently develop databases for various applications by database admin and other specialists. A DBMS allows different user application programs to concurrently access the same database. DBMSs may use a variety of database models, including relational and object model, to conveniently describe and support applications. Normally it support query languages, which are in fact high-level programming languages, dedicated database languages that considerably simplify writing database application programs. Database languages also simplify the database organization as well as retrieving and presenting information from it. A DBMS provides facilities for controlling data access, enforcing data integrity, managing concurrency control, retrieving the database after failures and restoring it from backup files, as well as maintaining the security of the database.

MySQL pronounced either “My S-Q-L” or “My Sequel,” is an open source relational database management system. It is based on the structure query language (SQL), that runs as a server providing multi-user access to a number of databases. It is named for original developer Michael Widenius’s daughter “My”. The MySQL development project has made its source code available under the terms of the GNU (General Public License), as well as under a variety of proprietary agreements. MySQL is owned and sponsored by a single for-profit firm, the Swedish company MySQL AB, now owned by Sun Microsystems, a subsidiary of Oracle Corporation.

MySql is a Graphical User Interface software. It is created by the software development company Webyog, based in Bangalor, India and Santa Clara, California, United States. SQLyog v0.9 was first released for public in the year 2001 as a closed source free software after 8 months of development. SQLyog was a free software until v3.0 when it was made a commercial software. Starting from v5.2 SQLyog has been available as a (Open Source (GPL license) and free) Community Edition. Commercial editions are named Professional, Enterprise and Ultimate.

| EXISTING| PROPOSED| REASONS|
SoftwareHardware| No existing software checking of attendance is base on log book. Microsoft ExcelMicrosoft XP,256 MB of RAM or higher, computer unit, and 1 system unit, Pentium 4 or higher, keyboard, mouse, power supply, printer| Computerized Payroll System for Larazi EnterpriseMicrosoft XP,256 MB of RAM or higher, computer unit, and 2 system unit, Pentium 4 or higher, keyboard, mouse, power supply, printer| `Accurate, fastest and secure is one of the most important things to consider in a payroll system. The proposed Computerized Payroll System for Larazi Enterprise helps the company for faster transaction in computing the payroll as well as to the employees who wants to see their balance. Most of the institutions use Windows XP as their Operating System because it is easy to use It offers universal solution to OS needs and there are no compatibility issues in this case. Windows XP is user friendly as compared to other OS in market.One important issue to consider is the qualifications of the system proposed, how accurate and faster the system and how to maintain it.|

Operational Feasibility

System to be installed: Computerized Payroll System for Larazi Enterprise
Once the system product is installed, it would be ready for operation. The Company’s secretary who will be responsible for maintaining the system as well as the Manager will be instruct by the developers and will be assisting on how the system operates.

The system product can be access LAN connection. This proposed system will provides a login account for the secretary that serves as the admin and for the employees. The employees will be given distinctive username and password which serves as the key for his identification. Once the employee logged in the system for the attendance the exact date and time will be save on the database that the admin will base the payroll on the time-in and time-out of the employee. On the employee’s maintenance they can also view and edit their personal information, they have also the privileged to view their balance on the payroll.

On the side of the admin, once the admin or secretary is logged in the system for computing the payroll he can access all the accounts of the employee for the computation including the SSS, Pag-ibig, tax, and cash advances.

The system can print weekly and monthly reports after the payroll is computed. The system also give an auto generated ID for the employees account. As the system approved in terms of usability and effectiveness it was easy to learn and understand.

Chapter VII
IMPLEMENTATION COST
Economic Feasibility
To determine if the proposed system can be feasible and flexible and will help to improve operation efficiency and data integrity regarding the information such as deduction and employee for account maintenance that the manager and secretary can only used and browse the system.

The development of this system software product includes payroll system for the employees and time tracking system. Since the computer is already available, there is no need for the company to purchase.

The following report represents an economic feasibility study for the proposed Computerized Payroll System for Larazi Enterprise. The principle of an Economic Feasibility is to demonstrate the cost benefit of a proposed system for accepting electronic funds or benefits, taking into consideration the benefits and costs to company.

Computation for Market analysis

KWH used of computer = No. of watts * No. of hours a month 1000 W

Total Annual benefit= Summation of benefits

Profit for First Year= Total Annual benefit – Total Development Cost

Payback Period = (Total Development Cost / Total Annual benefit) *12

Return of Investment (%)=(Total Annual Benefit/Total Development Cost)*100

Software Development Cost

Labor Cost
1 Programmer (3 * 18, 000.00)

Development Period=3 months

Labor=Developers Fee * Development Period

=18, 000.00 * 3 months

Total Labor Cost=P 54, 000.00

Miscellaneous

1 black Ink =P 700.00

1 colored Ink =P 800.00

1 ream Bond paper =P 150.00

Other (Transportation, photocopy, bookbinding) = P 1,500.00 P 3150.00
APPENDICES
Appendix A: IPO CHARTS

Existing System

* Employee’s Salary per week

* Employee’s name

* Employee’s Time-in

* Employee’s Time-out

* Deductions

* Manually Compute the number of hours work depends on the log book

* Manually less all the deductions

* Compute the total salary of the employee
INPUT PROCESS OUTPUT

Proposed System

* Employee’s Salary per week

* Weekly Reports

* Monthly Reports
INPUT PROCESS OUTPUT
* Log-in to Attendance with employee id and password

* Employee’s Time-in

* Employee’s Time-out

* Automatically Compute the number of hours work depends on the Attendance

* Less all the deductions

* Compute the total salary of the employee

APPENDIX B: QUESTIONNAIRE

Structured Questionnaires:

1. Is the company currently using a computerized payroll system?YesNo

2. Is the system generates all necessary informations for YesNo salaries computation?

3. Did the company’s existing payroll system can ensure securityYesNo of files?

4. Is the system provides an accurate computation of employees’YesNo

salaries?
5. Is the salary depends on time tracking system?YesNo

6. Is the current system satisfies the companies’ management?YesNo

7. Is the existing system provides a fast process?YesNo

8. Is the current system efficient for the company’s management?YesNo

9. Is the system provides a cost efficient process with respect Yes No to calculation of salaries of employees?

10. Would you like to use an advanced payroll system?YesNo

Unstructured Questionnaires:

Jervin Pabroada: A pleasant afternoon Ma’am, we are here to conduct a study about the larazi Junkshop enterprise we plan to implement a payroll system for the welfare and benefit of employees.

Tess Larazi: Since you are in need of all necessary information with respect to our payroll system, I will provide you all our data but ensure that all these data would be only use for the conduct of the study and should be kept confidentially.

Marcelo Ulan: Yes ma’am, we will ensure you that. First, we just want to know how you compute the salaries of your employees.

Tess Larazi: The data I have given you provides on how to compute the salaries which is net of all the deductions including the SSS, PhilHealth and the advances of the employees. The Pag-ibig contribution has not yet been implemented, but the papers are already in process.

Merebeth Molina: How about your log-in system?

Tess Larazi: As of now, we’re using log book for the time tracking of the employees.

Justine Sienes: How about the rate of the salary? Is it on per-hour basis or daily basis?

Tess Larazi: It is a daily basis, typically eight hours per day.

Jervin Pabroada: How about this one? As I notice, the number of days worked of this person exceeds the seven-day a week working days. What is the corresponding salary for this person and how it happened?

Tess larazi: Some employees had worked in an overtime basis so that they left the office at night.

Marcelo Ulan: Thank you ma’am. The information you had given us would help us a lot.

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