CHAPTER ONE

INTRODUCTION

1.0 BACKGROUND TO THE STUDY

One function of HRD (Human Resource Department) on a company is

calculating salary for each employee according to their staff attendance together

with overtime reward and discount due to late work resumption to the company.

There are various ways calculation process employee payroll, depending on the

policies implemented by the company. Every division in a company has it payroll

system that is not the same with each other. This is because of differences in

company tenure, job type and the needs of the company (to save on expenses).

The process of calculating employees’ salaries is still done manually by Human

Resources Manager in some organization. The Process is calculated by counting

the number of the days of each company's employee presence for a certain

period. The data has been obtained is then processed and entered manually into

Microsoft Excel program one by one. Then the input data is processed in a table

that had contained the variables in the form of salary deductions, allowances,

basic salary, and others. The result is total salary of employees in a certain period.

Manual attendance and payroll system has some shortcomings that cause HRD

to experience difficulties, such as requiring a long time in getting data on the

company's employees. For a company with large amount of works the job of the
 HRD will be extremely difficult and data can be easily manipulated or lost. In

addition, the possible risk of error (human error) that such a high frequency of

errors in input data by HR employees. HRD is often difficult to classify the data

of employees of different divisions. Therefore, with the advances in information

technology that existed at the moment, is expected to be created an information

processing system using a computer system to help overcome the weaknesses of

the manual system faced by HRD employees’ of any organization/company. This

can be realized by designing a web base application that can perform calculation

of employee salaries of any organization or company automatically so that

counting can be produced more quickly and accurately.

1.1 STATEMENT OF PROBLEM

Currently there are a lot of payroll software’s that exist in the market and running in
different organizations. Many software development companies have develop the
payroll software’s for different organizations. Some of them also developed generic
payroll software’s, some of the issues related to the existing system are;

 Platform dependent- the existing system can’t be accessed by every system.

 Performance – in many aspects, such as accuracy, speed and robustness.
 Memory- the existing system is restricted to a certain amount of memory
1.2 AIMS AND OBJECTIVES

The aim of our project is to DESIGN AND IMPLEMENTATION OF A WEB

BASED ATTENDANCE AND PAYROLL SYSTEM.

This can be achieved by fulfilling the following objectives.

1. Developing a system that takes attendance of staff with accurate time and date

2. To develop a system that improves staff punctuality in an organization or

company.

3. Designing a system that overrides the traditional way of generating payroll of

staff in an organization.

1.3 SCPOE OF STUDY

The web based payroll system centers mainly for employees who are working under

the Human Resource Department (HRD) of any organization or company.

1.4 LIMITATION OF STUDY

The limitations to this research work include:

1. The system is a web-based computerized system therefore it is difficult for

persons who are not computer inclined to use

2. The web-based system requires constant internet service therefore accessing

the system becomes expensive because you have to buy data from an ISP

3. There is a possibility of not always getting access to the system, if and only if

there is a poor signal from your ISP

1.5 SIGNIFICANCE OF THE STUDY

An attendance and payroll system is a set of business activities and implementation

of data processing related continuously. The major goal of this system is to build an

effective and efficient system that to perform automatic payroll calculation process

in which salary components such as basic salary, allowances, commissions, bonuses,

overtime, leave, calculation of income tax, and others are included to facilitate the

calculation of wages.

In addition, the attendance and payroll system will be developed with the aim of

improving services delivered to its users, ensuring proper organization of data

reducing data loss thereby increasing data integrity.

1.6 DEFINITION OF TERMS

Payroll: Payroll is an action that is performed by companies with employees. It's the

process the company goes through to pay the employees

Internet Service Provider (ISP): An Internet service provider (ISP) is an organization

that provides services for accessing, using, or participating in the Internet

REFERENCES

A. Dennis 184(6 ) (p47-49) (1997) “the importance of payroll” J. Account,

Arjun V. Singh, Siddesh V. Chaphekar, Yogesh S. Sawant (2016). “Automated Payroll System”

University of Mumbai, Department of Computer Science

Kritika Mahajan, Shilpa Shukla, Nitasha Soni (2015) “A Review of Computerized Payroll System”

University of Lingaya, Department of Computer Science

Poonamdeep Kaur, Dr. Dinesh Grover (2012). “Computer Based Payroll System Implementation for E-

Governance at Punjab” Agricultural University, Department of Computer Science

http://www.accounting-financial-tax.com/2012/07

https://www.coursehero.com/file/15799978/How-Does-Payroll-Process-Work

http://www.scribd.com/doc/21877936/Payroll-Management-System#scribd

https://www.meteor.com