Chapter 1: Introduction

As computer technology changes at such fast phase, many businesses sectors try to cope up by upgrading computer system constantly in order to stay competitive. The multifunction ability of technology for its advance system is also an important factor for a company to use software. It makes efficient use of the advance technology and has ambition to discover more. Computers have the great impact on the profession of accounting. With the rapid growth of technology today, there is no doubt that computer will become a common asset in all profession. The program also allows the monthly payroll schedule to be calculated accurately. Just by having all employees info like name, working hours, wages to enter in the database. Therefore, payroll can be done with the guide of the program. The system is good in for its specialty in the fields of accounting. It is easy to use, effective and efficient in organizing and calculating the payroll.

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1.1

Statement of the Problem

General Problem: How to design, develop, and implement a computerized Payroll System for Northern Star Investigation and Security Agency that will improve their current system?

Specific Problem: 1.) How to develop a module that will lessen the time consumed in computation of salary for employees because the files are being shuffled while encoding it? o The accountant has to look for the employees records then retrieve the number of days an employee worked and he also needs to compute the payroll of all employees. The accountant manually computes the payroll of employees. Gathering data and encoding them is very hard for the accountant since the company have over 100 employees.

2.) How to develop a module that will calculate the payroll in an accurate way? o The accountant sometimes accidentally shuffles all the records of the employees then eventually start all over again just to check if he processed the files correctly and accurately.

3.) How to develop a module that will easily generate the needed reports? o The accountant types all the necessary reports for the payroll of the employees and prints.

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1.2

Current State of Technology

1.2.1

Description of Current System

The accounting department usually gathers the time cards and processes the payroll by computing the employees salary through their time record.

All information about the employee was entered by hand into ledger books and done by the accountant. When payday came, the accountant would look up each employee by name, check his rate of pay, check his deductions, look at tax tables to decipher how much federal withholding, social security, state and local taxes to withhold, and finally come up with the amount to pay the employee. The accountant would then write the checks and submit them to the company owner for his signature. Then the accountant would distribute the checks to the employees. The process was repeated every payday.

In addition, this study aims to design, develop and implement a reliable and manageable computerized Payroll System for Northern Star Investigation and Security Agency for better management of the business. The Proposed Computerized Payroll System will give a big relief to the employees and employers as well.

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1.2.2

Hardware and Equipment Setup

1.3

Objectives of the Study

General Objectives The objective of the study is to access the present payroll system of Northern Star Investigation and Security Agency, Novaliches, Quezon City. This study would help the system analyst to know the prerogative and inconvenience of manual payroll system as well its effects on their business performances. Moreover, it would give them the idea on what possible instances they may encounter in the system software (payroll system).

Specific Objectives 1.) To develop a module that will lessen the time consume in computation of salary for employees. o The proposed system will lessen the time consumption on computing the salary of the employees because the company will be using a program.

2.)To develop a module that will calculate the payroll in an accurate way. o The proposed system is very accurate on computing the salary because it contains mathematical solutions and formulas for computing the payroll.

3.) To develop a module that will easily generate the needed reports. o The proposed system can generate report in just 1 click then the respondents can print it.
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1.4 Scope and Limitations Scopes : -in module The employees log in their time then the time keeper records this module.

The system will automatically generate the hours, salaries and deductions or pay slips of all employees.

The system can add, update, search and retrieve records of the employees regarding their salary.

The system can change and delete the employees information.

The system generates the net pay of the salary of the employees.

In charge of all the reports including payroll and pay slip reports. o Pay Slip The accounting office will generate the pay slip then give to the respective employees. o Payroll Report The accounting office will print the report then put in the filing cabinet for future reference.
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Module The cut-off period of the pay period can be changed with the companies will.

Limitations of the Study:

Hiring of employees depend on the need of the company.

Only the management can do this because of its confidentiality.

The bandy clock is not part of the system because it is still done manually by the time keeper.

The system will not compute the back pay when the employees contract is done. 1.5 Significance of the Study

The owner will benefit the owner because having this system is important to the company to gain competence to other companies because nowadays most of the companies are using computerized system.

This will benefit the accountant because this will lessen the time consumption and this will accurately compute the payroll of the employees.

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This will benefit the employees because the salary and the deductions generated from this system are very accurate.

This will benefit us because this is our requirement to finish the course.

This will benefit our school because this will serve as reference to the library.

This will benefit them because if ever they need a reference to do their proposal, they can read this and they will have an idea on how to make a good proposal. Using the current Payroll System, Northern Star Investigation and Security Agency encounters problems such as attendance monitoring, data redundancy, complicated interface, miscalculation of salary, maintenance, and security of files. Specific Problems: 1.)Attendance monitoring. HRMO uses DTR for attendance to log in and out of work. Problem arises when employees ask their co-worker to log their name even if they are not yet really in the office. There is no way to know if employees really work that day and time. 2.)Data redundancy. The current payroll system is done manually, in effect; there is a need for more paper works. Printed copies of documents are sent to offices involved. Different offices hold copies of the documents, so that when the documents have to be updated, all the copies should also be updated. As a result, data redundancy is committed. 3.)Complicated interface The Treasury Office uses MS Excel Application in their payroll system. It is where they input necessary data for the computation of the salary. The complicated interface
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of the application plus the large number of data to be inputted makes it hard for the person in charge to do the work faster. This particular problem results to slow payroll process. It takes the office 5 days to finish the computation. 4.)Miscalculations. The establishment has 210 employees, which means 210 salary computations. All of their salary has to be manually calculated first using the calculator, before inputting and saving the data to MS Excel. Calculating all the employees' salary is not easy. It takes a lot of time and effort. There are times when the person in charge of the computation gets confused with the numbers or inputs wrong amount, which leads to errors and inaccurate financial transactions. 4.)Maintenance. The treasury office uses only one computer only for data storage. All computations are saved in that computer without other back up. The problem is, when the computer fails, there will be no other means to retrieve the files. 5.)Confidentiality and security. Since the Municipality is a public area, unauthorized persons can easily view important files from the computer and alter some data without others noticing it.

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