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Payroll system Essay Sample

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Payroll system Essay Sample

INTRODUCTION
As of now, we are now in high technology that computerization is adopted in a way of living of many individuals. High technology machine makes anyone task done fast in a simplest way of operating the system. Many establishments implemented the systematic way of working and doing transaction to minimize the exertion of effort and the waste of time that consumed in the manual process. Institution and universities desire to have an easy way in processing the payroll system of the employee. Therefore, the researcher aims to study the Employee Payroll System of San Francisco Municipality, Surigao Del Norte. We come up with a proposal that help to enhance the manual process of the present system to automate its process and operation.

ORGANIZATION OF THE STUDY
The organization of the study consist two parts. First part covers the result of the system analysis and design made by the researchers that is subdivided into four chapters and the second part is the program documentation. Chapter 1 discusses the overview of the present system study. It begins with an introduction, organization of the study, review of related literature, statement of the problem, statement of purpose and objectives, significance of the study, scope and limitation, research methodology, schematic diagram, and Gantt chart. Chapter 2 deals on the present system that consists of the introduction , organizational chart, the documents and its usage, context diagram, processing of transaction, data flow diagram of present and proposed system, and its analysis and interpretation. It shows here the overview of the present and proposed system. Chapter 3 presents the financial aspect of the study, which covers the cost benefits analysis of present and proposed system with the summary, tangible, and intangible benefits. Chapter 4 discusses the accomplishment of the study based in the summary, conclusion and recommendation of the study.

REVIEW OF RELATED LITERATURE
ABS-CBN Publishing Inc. (API) recently engaged the services of EDS INNOVENTIONS to provide a customized Attendance Management System (AMS) that conforms to its demanding and complicated work schedules. Being the market leader in magazine publishing in the Philippines, API’s workforce is comprised of around 300 employees working on 24 hour shifts.Its various work schedules poses a programming challenge and has policies unique in the industry. Automating the calculation of attendance items will provide significant cost-savings by eliminating tedious and error prone computation of employee attendance.A subsidiary of ABS-CBN Broadcasting Network, API has the largest and widest magazine distribution network in the country, covering 200 key cities and municipalities all over the Philippines. With its portfolio of lifestyle, culinary, youth, and entertainment glossies and books, ABS-CBN Publishing has been able to reach well-established and emerging markets both here and abroad. It publishes Metro, Metro Weddings, Metro Home and Entertaining, MetroActive, Metro hiM, Metro Society, Working Mom, Food, Pink and Chalk magazines. The project with EDS Innovationsunder a partnership with East West Bank who provides payroll services to API and whose payroll system is directly linked to the EDS AMS.

STATEMENT OF THE PROBLEM
The Municipality of San Francisco still conducted a manual type of payroll system. Some of the problem they encountered are the following: Is the present system time consuming and hassle to the accounting officers? Is the present system providing an exact information and computation? Is the present system secure and properly stored?

STATEMENT OF PURPOSE AND OBJECTIVES
The primary purpose of the study is to automate the manual process of the Payroll System of the Municipality of San Francisco, Surigao del Norte. It provides an easy task for the in-charge of the payroll process. These are the specific objectives of the study.

To minimize time and effort of the accountant in computing the payroll system. To provide an exact information and computation of the payroll transaction. To provide security of the payroll system and proper storage of the record.

SIGNIFICANCE OF THE STUDY
Technology in modern world is rapidly progressing. Computers are used to execute programs in an efficient and convenient manner. Through this, the researchers proposed a system that would develop the present manual type of Payroll System of the Municipality of San Francisco, Surigao City for efficient operation and for employee’s satisfaction. Accounting Officer: minimizes the time and effort in computing and checking records. Researcher: it helps us to enhance our knowledge and skills in making a proposed system. Employee: minimizes the time and effort in filling up the time-in and time-out, this is for the preparation of their DTR.

SCOPE AND LIMITATION
The study focuses only on the Payroll System of San Francisco Municipality, Surigao Del Norte. The study limits on the Municipality who are officially employed at the Municipality of San Francisco. Subject: The study focuses on the Payroll System of the Municipality of San Francisco, Surigao Del Norte. Place: The proposed system study is located 1st floor of the main building Accounting office of the Municipality at Rizal St Poblacion San Francisco, Surigao Del Norte. Time: The researchers conducted the study within the academic year 2011– 2012 Limitation: The study limits only on the accounting office of the Municipality of San Francisco, Surigao Del Norte.

RESEARCH METHODOLOGY
The methodology describes the survey method of research and the sources of data used by the researchers that will serve as guide throughout the development of the system. It discusses the manner by which data are to be gathered in answering the problem stated. The components are presented in the following: The environment, the subject, instrument and the procedure (a) Environment

This study was conducted in the Municipality of San Francisco located at floor of the main building Rizal St. Poblacion, San Francisco Surigao Del Norte. (b)Subject and Locale
The subject of this study is to automate the manual operation of payroll
system of the accounting office of the Municipality of San Francisco. (c) Instrument
Questionnaire is the major instrument used by the researcher in gathering of data. (d) Procedure
Data Gathering and Output
The following are the task to be accomplished by the researcher to complete the thesis project. Data Gathering
To construct a system it is important to gather data by means of interview in order to come up with the deeper understanding with the system you are referring to. The researchers conduct an interview with Ms. Grace Apollo, the Municipal Accountant of San Francisco, Surigao del Norte. The information gathered from the interview will be utilized to evaluate the problems they encountered. Data Analysis

For better understanding of the proposed system the researcher presents the data and system concepts using system models particularly the data flow diagram and the context diagram.

SCHEMATIC DIAGRAM

The researcher prepared a letter to the Municipal Accountant in order to conduct an interview and they also made questionnaires as their guide with their interview. They gathered data and information about the study from the respondent. After which they analyzed and documented the data they received with the respondent, and submit it to the adviser for checking. The adviser tells to have an interview again with the respondent for more classification of the study. They interview and analyzed the additional data, documented, submit again to the adviser. The researchers again finalized the document and submitted it to the instructor for the preparation for the oral defense.

CHAPTER 2
Technical and Operational Aspects of the Study

INTRODUCTION: PRESENT SYSTEM
The Municipality of San Francisco is formerly named as Anao-aon and is one of
the municipalities of Surigao del Norte. It is located at Poblacion, Rizal St., San Francisco, Surigao del Norte. A municipality of San Francisco has different department offices. One of this is the Accounting Office Department where the payroll processes assigned. Every fifteen days the Accounting Office do processedthe payroll transaction of the employees. During the processing, they use a manual type of processes that lengthen their work. They would not have those problems and hassleslike preparations of materials example spreadsheet, pencil and eraser in making their payroll,if they would have a systematic way in there process.

ACCOUNTING OFFICE ORGANIZATIONAL CHART

DOCUMENT AND ITS USAGE
A. INPUT
Logbook – contains the name, time in, time out, dates, and signatures of the employee and serves as their attendance information which they input their time in and time out and also the basis for making the DTR. DTR – used to tract vital information of the employee and it contains the name, time in, time out, dates, and signatures of the employee, dep’t head and the mayor. B. OUTPUT

Payroll Report – documents that are generated from accounting records that have to do with the payroll of the municipality.The wages and salaries of employees working in the municipality during the cited period form the basis for the report. Along with carrying gross figures for salary and wages, and it will also identify the net amount of pay extended to the employee. This document contains the employee’s salaries transaction, signatures of the Accountant, Mayor and Treasurer. Pay Slip- is a small document detailing salaries and wages earned by an employee and sums of money (such as income tax) deducted at source.

THE PROCESSING OF TRANSACTION
The transaction process of the Payroll System of the Municipality of San Francisco, Surigao Del Norte is operated manually. It represents the sequence of task in their payroll system. There are six people involved in their payroll system transaction. They are the employee, dep’t head, personal officer, accountant, mayor, and the treasurer. First, the employee shall submit the DTR for verification to his/her Dep’t head. Second, the dep’t head will verify the DTR and return it back to the employee. Third, the employee will submit the verified DTR to the Personal Officer for checking and adjustment of salary. Fourth, the accountant will prepare the payroll. Fifth, the mayor will sign the prepared payroll for the approval then submit to the treasurer for preparation of salary disbursement together with the pay slip. Moreover, after the preparation the employee will receive his/her salary.

THE PROCESSING OF TRANSACTION (THE PRESENT SYSTEM)
The Present Sytem Data Flow Diagram explains the flow of the processing of transaction of their payroll system. First, the employee will fill up the DTR and submit it to the Department Head for the verification. Second, the DepartmentHead will verify the DTR and will return it back to the employee. Third, the employeewill then submit the DTR to the Personnel Officer for checking and adjustments.Fourth, the Personnel Officer will check the DTR if there is any adjustment and if not the DTR will pass into the Municipal Accountant for the preparation of the payroll. Fifth,the Municipal Accountant will submit the prepared payroll to the Mayor for approval.Sixth, the Mayor will approve the payroll and then the Municipal Accountant will make theIssuance of Accountant’s advice and then submit it to the Treasurer. And seventh, the Treasurer will prepare for the disbursement of salary then disbursed the salary together with the pay slip to the employee. Lastly, the employee will receive the salary.

THE PROCESSING OF TRANSACTION (THE PROPOSED SYSTEM)
The Data Flow Diagram of Proposed System explains the flow of transaction within the payroll syatem. First, the employee will automatically do the log-in and log-out using computer and for that it will automatically proceed into the Accountant with the data gathered ready for the preparation of the payroll. Second, The Accountant will submit the prepared payroll to the Mayor for the approval. Then the Mayor will approve the payroll and then the Accountant will make the Issuance of Accountant’s advice and then submit it to the Treasurer.The Treasurer will prepare for the disbursement of salary and after that will disburse the salary with the pay slip to the employee. Lastly, the employee will receive the salary.

THE BOTTLENECKS: The Real Problem
Based on the information gathered by the researchers through interviews and interpretation of the processing of the present payroll system of the Municipality of San Francisco, the following problems within the accounting department have been found: 1. The present payroll system is time consuming

2. The present system is not reliable and efficient
3. The present system is not secured
The above mentioned problems are based upon the information given by the Municipal Accountant and upon the analysis of the researchers.

PRESENT AND PROPOSED SYSTEMCOMPARATIVE
Based on the interviews and information acquired by the researchers, and through observing the processes done in the present payroll system of the Municipality of the San Francisco. The following comparisons between the present system the researchers proposed system, has been generated: Present System

1. Manual processing of the payroll system.
2. The generations of the reports are generally done in manual way. 3. The present system consumes large amount of time, with respect to generating the payroll reports. Proposed System
The proposed system provides a more efficient and faster way of processing the transactions especially on: 1. Automatic time-in and time-out of the employee.
2. Automated computation of the employee salary along with the payroll transaction. 3. Reduced time consumed in processing the payroll system transaction of the Municipality of San Francisco. Surigao del Norte. 4. More secured data storage and access.

ANALYSIS AND INTERPRETATION
The Municipality of San Francisco, Surigao del Norte is presently using the manual procedure in processing their payroll system. Based on the analysis and interpretation of the researchers on the present system, the in-charge who is involved in the accounting department is the one that carry outs the normal process related to the present system, difficulties always encountered by the person who is responsible in computation of the payroll transaction that is hassle and time consuming.

Moreover, for all the difficulties they have experienced, the researchers tried to come up with the plans to solve the problem of the Municipal Accountant who is responsible for the payroll system. To automate the Payroll System of the Municipality of San Francisco, Surigao del Norte.

SYSTEM SPECIFICATIONS
The Payroll System using Visual Basic 6.0 software is built with (4) major components that interact with each other and performs various activities. Below are the components of the Payroll System using Visual Basic 6.0 software. 1. Log-In

This module will let the user to add or change user password, and view details. It ensures that the system is safe from unauthorized access. 2. Main Form

This Module will let the user update the personnel action form, and view details. 3. Payroll Report
This module will let the user view the output of the transaction 4. User Level
Will let the user to change username and password into other form
A. FILE DESCRIPTION
The entire system is composed of one database file, and within this database, seven (7) tables hold the data from the input files. These are the database used in the system. Employees file -this is used to store the data about a particular profile such as Fname, Mname, Lname, address, position, user name, password and ID number. Addition file–this consists the benefits of the employees. Deduction file – this file contains the position of the employee and their deduction from their basic salary. Position file – the file is used to update the position of the employee with their basic salary. User Account file – this contain the name, position, username and password. Employees attendance file – this contain ID number, name, time in, time out and date. Print file – contains name, position, basic salary, total addition, gross pay, total deduction and net pay.

SOFTWARE REQUIREMENTS
Software component is categorized into two areas; these are the application software and the system software.
The application software serves as the framework of the entire system. It
implies the procedure required to accommodate information processing function.
One consideration of the system design is the operating system, which implements the control functions that enable the application software to interface the other system elements. System Software

INTRODUCTION

Financial matters are related to all aspects, also expenses incurred from the operation of a business or the performance of employment-related activities within the municipality.
This situation, it will focus on the financial aspects of the system. It composes the financial data that indicates the cost benefit and summary of present and proposed system. It is the information that shows the major concerns about financial acts of the system. It analyzes the comparative cost of present and proposed system.

Through this, it will clarify the major cost and expenses together with the benefit of their municipality on how to minimize the financial cost of the system.

1. Lesser time consume – Minimizes the time in payroll computation. 2. Speed of Processing – the transaction would generate fast compare to manual processes. 3. Hassle free – gives the user with a lesser work upon computing preparation.

INTANGIBLE BENEFITS
1. Security – only the authorized personnel is allowed to use the system. 2. Convenience – provides a friendly instructions and access between the user and the system. 3. User friendly – the proposed system is menu driven system which guides the user to what operations he/she wants to perform. 4. Accuracy – eliminating errors in computing the payroll transaction.

CHAPTER 4
SUMMARY, CONCLUSION, AND RECOMMEDATION

SUMMARY
The transaction processes in computing the Payroll System of the Municipality of San Francisco, Surigao Del Norte is done manually and because of this manual operation, they encountered common problems such as time consuming, unsecured data, and any possible problem occur. And it has observed that it can delay the process of the payroll.

In this matter BS information technology students assign of this system conducted a study and proposed a fully automated and centralized system. Such proposal aims to answer the problem to improve the processing used by their office to minimize both time and effort of its benefactors that may lead for onward development of municipality to have an accurate and fast processing, which is the most problem often, encountered in manual processing

CONCLUSION
The researcher of this project therefore concludes that the proposed system minimizes the time in payroll computation. And gives the user with the lesser work upon computing preparation and it also provides easy access interaction to the user and the system. The proposed system also provides security to make the files and records very well secured. RECOMMENDATION

GUIDES QUESTIONS FOR THE INTERVIEW
Here are the questions raised during the one-on-one interview with the Municipal Account of San Francisco, Surigao del Norte: Is the present system time consuming and hssle?
Is the present system providing an exact information and computation? Is the present system secure and properly stored?

GLOSSARY OF TERMS
Access – to retrieve data or instruction to alter data in as desirable way and to perform at least some of these operations without human intervention Automation – The replacement of human skill by automatic machine. Automation brings the vision of technological job replacement in which skilled humans suddenly find themselves without employment as machine take over the jobs. Context Diagram – is a data flow diagram showing data flows between a generalized application within the domain and the other entries and abstractions with which it communicates. Data – refer to a collection of facts usually collected as the result of experience, observation or experiment within a computer system. Database – is a structures collection or records or data that is stored in a computer system. Data Entry – the process of getting information into a database application, usually people typing it in by way of data entry forms designed to simply the process. Dataflow – is a term used in computing, and may have various shades of meaning. It is closely related to message passing Data Flow Diagram – is a graphical representation of the flow of data through an information system Database Structure – a definition of the data records in which information stored, including the number of data fields. Documentation – the instructions, tutorials and reference information that provide users with the information required to use a computer program. Field – fields describe a single aspect of each member of a table. Fieldname – a name given to a data field that helps you identify the fields counter in a database management program. Table– asingle store of related information.

Gantt Chart – is a graphical representation of the duration of tasks against the progression of time. Hardware – the electronic components, boards, peripherals, and equipment that make up your computer system distinguished from the program that tells these components what to do. Password – is a secret word or string characters that is used for authentication. Process – the execution of program instructions by the computers CPU so that data is transformed in some way. Such as sorting data, selecting some data according to specified criteria, or performing mathematical computations on a data. Program – a list of instructions in a computer-programming language that tells the computer what to do. Record – a record contains all the information about a single ‘member’ of a table Report – a from designed to print information from a database. Security – the protection of data so that unauthorized person cannot examine or copy it. Software – system utility or application programs expressed in a computer readable language. System – a collection of related parts treated as unit where its components interact. User – the person who will benefit directly or indirectly. From the capabilities of a computer systems and uses the capabilities to perform a professional, managerial, or technical task, such as analyzing a companies financies, preparing publication. Input – those items that enter the boundaries of the system from the environment and are manipulated by the system. Output – thedelivery of the result of processing.

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