ASIAN INSTITUTE OF COMPUTER STUDIES

INTRODUCTION
Payroll consists of the process by which a business pays its
employees for work performed during a specific period. A payroll system allows
businesses to follow a set series of processes in order to make timely, correct
payments in compliance with government regulations. A payroll system may be
manual or computerized and handled in-house or outsourced to another
provider. The payroll process typically includes calculating employee pay,
recording payroll transactions and determining and paying payroll taxes. A
company must have in place a timekeeping system that accurately reflects the
hours put in by nonexempt employees as well as the regular salary payments
for exempt workers. Employers typically withhold federal income tax from
employee earnings; at the end of the year, they must report all wages, tips and
other compensation paid. Companies also must with hold Social Security and
Medicare contributions from employees wages and pay a matching amount.
We are a computer science student at Asian Institute of Computer
Studies, We are tasked to build a Computerized payroll system to replace the
manual computation of their payroll. GreatToysOnline.com needs a system to
allow employees to record their DTR (daily time record) electronically and
automatically generate their pay slip.

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BACKGROUND OF THE STUDY

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 multi function 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 teachers and employees info like name,
working hours, wages etc to enter in the database.

Therefore, payroll can be done with the guidance of the program. The
system is good for its specialty in the fields of accounting. It is easy to use,
effective and efficient in organizing and calculating the payroll. In addition, this
study aims to develop a reliable and manageable computerized payroll system
for GreatToysOnline.com for a better management of a business. The Proposed
Computerized Payroll System will give a big relief of the employee and
employers as well. One of the most requested features of the new system is
employee reporting. Employees will be able to query the system for number of
hours worked. The reporting feature will be available through the desktop.

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THEORETICAL FRAMEWORK
The theoretical framework is used to make a graphical representation
that shows what specific operations that a payroll system may possess based
on the proponents theory.

Feedback
Figure 1.0

As shown in Figure 1.0 the input shows what possible input that a user
may apply in our proposed system, next is the process which represents the
following process that the proposed system may perform, last is the output
which represents the following output that the proposed system may produce.

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CONCEPTUAL FRAMEWORK
Conceptual framework is used to represent what following operations
and processes that is possible to encounter when using our proposed system,
since the proposed system is a computerized payroll system the proponents
prepare this framework to show the components that a computerized payroll
actually possess, not exactly as it is but possible.

Figure 2.0

As shown in figure 2.0 shows the following capabilities that a

computerized payroll system is present in our proposed system. It may not
exactly as it is but based on the research made by the proponents; these are the
possible concepts that a computerized payroll system may contain.

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STATEMENT OF THE PROBLEM
The current system they used in the payroll is a manual process to
create a record of the pay slip and they need to compute the DTR (daily time
record) and they are unsafe of the manual process because anyone can access
because of lack of security
SCOPE AND LIMITATIONS OF THE STUDY
Scope
This study is designed to develop a Computerized Payroll System for
GreatToysOnline.com. It covers the process of preparing the Payslip of each
employee, the regular and job order employee, keeping of records safety and
computing the exact wages of each employee. Including the stored report list of
employees such as Gross income, Net income, Rate per day, Incentives and
Deductions such as SSS, PhilHealth and PagIbig.
The proposed Payroll System for GreatToysOnline.com is expected to
generate Pay Slip of Employees, Report list of employees, Payroll register of
regular and job-order employees, and Payroll form for every pay period.
Limitations
The proposed Computerized Payroll System for GreatToysOnline.com.
does not support network topology implementation and online program or online
transaction.

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SIGNIFICANCE OF THE STUDY
To Payroll Maker of GreatToysOnline.com
The proposed system will help the accounting section of the business
establishment, especially the Payroll maker/bookkeeper. It will help to lessen the
time and effort of the payroll maker/bookkeeper preparing payments off to the
employees. The System develops can accommodate changing figures and
produce a paperless environment through well design database.

To Proponents
This study will help the proponents to enhance the ability on how to
create an understandable computerized system in an easy way. This will serve
to the proponents as a challenge to make a better system.
To the other Researcher
This study gives knowledge to the researcher on how to create a
Computerized System in an understandable way. This will serve as a fresh
ground for the researcher whose study will be related in the field of Information
Technology.

DEFINITION OF TERMS
Client
A person that can receive services from the employees and agents.
Company
A business enterprise firm.
Computer System
The configuration that includes all functional components of computer and its
associated hardware or software.

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Database
An integrated collection of data which provides a more efficient way of
storage and retrieval of data and is capable of processing large portions of data
immediately.
Employee
A person employed at a wage or salary.
File
A receptacle that keeps loose objects such as papers or any collection of items.

Information
Is data that has been changed into a useful form of output.
Payroll System
A payroll system is a computerized technique that is used to calculate the
sum of salaries employees who need to be paid in an organization. The name,
address, Social Security number and the bank account numbers are the key
elements in a payroll system. This method saves time.
Process
A series of actions, changes, of functions that bring about an end or a result.
Record
A document that contains an account particularly in terms of collection.
Services
Non-monetary programs provided by companies that benefits clients.
Software
A computer terminology use to describe the unseen programming codes and
running application inside the computer system.
System
A set of related components that produces specific results.
Technology
It is the study of practical or industrial arts

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Foreign Literature
According to the book "System Documentation" (2010), states that a
computerized payroll system must have the ability to update and maintain
employee information and to generate required outputs including paychecks,
reports to management and to the government.
According to a blogged article in blastasia.com (2007), says that a
computerized payroll system is designed to help human resource professional
as well as finance and accounting personnel to manage employee
compensation, deductions, allowances, and benefits in an organization.
According to the definition of Enterprise Resource planning on Wikipedia.com,
stated that "organizations perceive ERP as a vital tool for organizational
competition, as it integrates dispersed organizational systems and enables
flawless transactions and productions". This statement serves as basis of this
proposed systems capability and flexibility to integrate to other subsystems
within the airline system.
Local Literature
According to the book of Trias (2010)entitled What is a Payroll System?,
emphasized the importance of accurate calculations in a successful payroll
system. It is that a payroll system is defined as a system programmed to
calculate taxes and deductions, which can also be internet-based or offsite.
In the book of Musa (2009), entitled Philippine Based-Payroll System,
emphasized the major elements or variables that a Computerized Payroll
System consists. The author indicated the specific items the database of a
Philippine-Based Computerized Payroll System must have.
According to the book of Lamberte, entitled Philippine Payment System,
stated that basic and essential parts of any payment related system, the flow of
information providing payment instructions and the flow of funds. He also
emphasized that this flows requires an instrument to convey the information

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about the transactions, this is where a computerized payment system(in this
case a Payroll System)comes in.
Foreign Studies
Based on the research study entitled "PAYROLL ERP SYSTEM" of Advantos
Systems (2013), explains that it is vital that a payroll system must allow the user
to set up an employee paycheck record. It also emphasized the use of separate
salary record for each employee and the proper maintenance of data on tax
rates and exemptions.
Based

on

the

system

study

entitled

"INFONETICS

PAYROLL

SYSTEM"(2012), emphasizes that a payroll system must be user-interactive in

all its processes (including maintenance of payroll records ad payroll reports and
checks printing). It also explains that the system must be capable of maintaining
accuracy of tax tables and deductions using a concrete formula.
Local Studies
Based on the

research study entitled computerized payroll system of

Department of Health (DOH) (2007) explains that a computerized payroll system

is a window based program which is specially designed to facilitate and simplify
the monthly preparation of general payroll and related reports. Also that is must
be flexible to provide option which allows the user to hold additional fields for
other compensations and deduction which was unique to an office the company.
Based on the undergraduate study made on Cagayan De Oro City Hall
entitled "Cagayan De Oro City Hall Computerized Payroll System" stated that is
important that the system must be easily accessible, fast-tracked and secure.

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METHOD OF RESEARCH TO BE USED
The researchers used the descriptive research method in order to complete
the study about the computerized payroll system for GreatToysOnline.com. The
researchers chose to use the said method in order to address, explain or
describe the problems in the current payroll system that the company is using as
well as in order for the researchers to explain their proposed solution and their
objectives in the study. It involves there cording, description, analysis, and
composition or processes of phenomena.

DESCRIPTION OF RESPONDENTS
The respondents of the study were the people who were directly involved in
the processing of the payroll in the company, GreatToysOnline.com. The
researchers interviewed the Owner of the company on how they conduct and
process the payroll in the company

RESEARCH INSTRUMENT
In conducting the research, the researchers used and applied the following
research instruments and techniques
Interviews
Interviews were conducted by asking people in the company about the
processes they apply in conducting their payroll in order to gather information
that will be useful in the study.
Observation
The researchers also took their time to observe the processes in the company
in order to gather more information that they could use in creating a payroll
system for the company.

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Web Search
Since the studies that are to be found in libraries are local studies, the
researchers expanded their search by using the internet and collected
information about foreign studies regarding the same topic they are making a
study on.

DATA GATHERING PROCEDURE

a. Conduct an interview
-An interview was conducted last November 23, 2014 with Mr. Malvin S. Lim,
manager/owner of GreatToysOnline.com
b. Assimilate cognizance on their recent payroll system.
- They manually compute and record them via record book.
c. Inspect the documents to validate the process.
-Noted per inspection of the Payroll Sheet that processing of payroll in
GTO is done manually.

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PROFILE OF THE RESPONDENTS

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Summary
It has always been the aspiration of humankind to create devices that would
simplify the work of people. With the invention of computers, many businesses
have taken the leap to implement automated systems as to maximize the
productivity of their business in terms of efficiency, speed, accuracy and most
importantly the long term cost. Apparently, a majority still using the manual
system in their sales force, so the researchers decided to propose and develop
a computerized payroll system. All these with the use of data gathering and
statistical tools such interviews, the researchers are able to determine the
difference and measure the effectiveness of the existing and the proposed
computerized system.
Conclusions
Based on the findings, the researchers come up with the following
conclusions:

1. The proposed system will be a big improvement over the existing manual
system such that every employee will be easily tracked by the manager and can
easily be guided in all their sales activities.
2. The proposed system will be a substantial improvement over the current
system for agents such that all of their sales will be based on the scientific
stages of the sales process. The implementation of the new system can
therefore maximize the sales potential of each client.
3. As a whole, the proposed system and the existing system have a
tremendous distinction. The difference from the traditional to the proposed
system is truly beneficial to the business establishment.

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Recommendations
Based on the results of the findings and conclusions gathered, the
researchers would like to recommend the following:
1. The proponents recommend that the business establishment consider the
proposed computerized system to increase the number of individual sales of
agents and also maximize the full sales potential of its sales force.
2. The proponents recommend the proposed system be implemented by the o
admin and client because it is more productive and more capable of delivering
quality performance in transaction.
3. The proponents recommend that future researchers continue to improve
the proposed system.

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