DATA BASE MANAGEMENT SYSTEM

TERM PAPER

SUBMITTED TO SUBMITTED BY
PROF.SARTAJ SINGH Manpreet singh
Roll no E3004A84
ClassM.C.A(1STSEM)
 ACNOWLEDGEMENT
I would like to express my gratitude to all those who gave me
helping hand incompleting this term paper. I want to thank my
teacher MR.SARTAJ SINGH for helping me whenever I needed it
the most. My friends have also supported me in my work. I want to
thank them all for their help, support, interest and valuable hints.
 INDEX
SRNO CONTENTS PAGENO

1. Introduction 4
2. Payroll administration 5
3. Manual system 6
4. Payroll system 7
5. Objective of payroll 7
6. Advantage of payroll process 8
7. Example of an organization 8
8. Flow chart 14
9. ER Diagram 17
PAYROLL PROCESSING

INTRODUCTION
Payroll is defined as a method of administrating employees salaries in the
organizations. The term 'payroll' encompasses every employee of a company who
receives a regular wage or other compensation. Some employees may be paid a
steady salary while others are paid for hours worked or the number of items
produced. All of these different payment methods are calculated by a payroll
specialist and the appropriate paychecks are issued. The process consists of
calculation of salaries and tax deductions of the employees, administrating the
retirement benefits and disbursements of salaries to employees. It can also be called
as an accounts activity, which undertakes the salary administration of employees in
the organization. It identifies risks such as entering incorrect.employee information
into the system and making unauthorized adjustments to employee hours.
Administrating the employees’ salaries is not an easy task, the HR and accounts
department work together to calculate and disburse the salary to the employees.
Thus, payroll management can be further subdivided into two sub processes, i.e.
Payroll accounting and payroll administration
PAYROLL ACCOUNTING:
Payroll accounting involves calculations of employees’ salaries and tax
deductions. It also undertakes the activities such as preparation of tax returns,
maintaining the payroll records, etc. Payroll accounting includes reporting of
payroll, fringe benefits, and the payroll-related accounts of a typical company
on its income statement and balance sheet. Payroll and benefits include items
such as:
 Salaries
 Wages
 bonuses & commissions to employees
 overtime pay
 payroll taxes and costsPAY
 Social Security
 Medicare
  federal income tax
 state income tax
 state unemployment tax
 federal unemployment tax
 worker compensation insurance
 employer paid benefits
 holidays
 vacations
 sick days
 insurance (health, dental, vision, life, disability)
 retirement plans
 profit-sharing plans
Many of these items are subject to state and federal laws; some involve labor
contracts or company policies.
PAYROLL ADMINISTRATION:
Payroll administration encompasses all the tasks involved in paying an
organization’s employees. It typically involves keeping track of hours worked
and ensuring that employees receive the appropriate amount of pay. It also
includes calculating taxes and social security as well as ensuring that they
are properly withheld and processed. Depending on the company in
question, a full range of other deductions may be calculated, withheld, and
processed as part of payroll administration. Additionally, the processing of
contractor payments may fall under the umbrella of payroll administration.
Handling payroll-related problems are part of payroll administration as well.
If an employee is paid an incorrect amount or a direct deposit fails to go
through, both things are payroll administration issues. Likewise tax filing and
deduction errors are payroll administration matters as well.
Payroll administration is an important task which most companies and
business establishments find it difficult to cope with. To efficiently perform
this task, it requires tedious paper work, records maintenance, salary and
loan administration, providing up-to-date information to employees,
superannuation, tax compliance, deductions, reimbursements, and so on
calculation of gross salaries and deductible amounts is a tedious task which involves
risk. Some of the organizations use the traditional manual method of payroll
processing and some go for the advanced payroll processing software. An
organization opts for any of the following payroll processing methods available.

Manual System

Manual payroll system is the traditional payroll system which involves pen and ink,
adding machine, spreadsheet, etc instead of computers, software and other
computerized aids. The process was very popular when there were no computerized
means for payroll processing Now-a-days it is only few small scale organizations in
the remote areas that use the manual payroll. Sometimes the construction industry
and manufacturing industry also use the manual payroll systems for the contractual
labour, as theses contracts are on daily/weekly basis.
There is full control in the hands of owner. But the process is tedious, time
consuming and risky as it is more prone to errors.
Figure: Various Payroll Processes

Accountant
Accountant is a professional having a degree/diploma course in
finance/accountancy. He/she is responsible for all the activities related to payroll
accounting. He/she has the sound knowledge of accounting principles and globally
accepted standard
The process adds costs to the organization. It involves paying someone who is
responsible for calculating the salaries of others. The financial control regarding
salary goes in the hand of accountant.

Payroll Software
In today’s computerized environment, payroll system has also developed itself into
automated software that performs every action needed by the payroll process. It
helps in calculating the payable amounts and deductions very easily. It also helps in
generating the pay slips in lesser time. Automated calculations result in no errors.
Data is validated automatically by the software.
It needs professionals to make use of the software for its efficient working.

Payroll Outsourcing
Payroll outsourcing involves a third party (an outsourcing company) in the
calculations of salaries and deductions. The outsourcing organization is responsible
for all the activities of the payroll accounting. It saves time and cost for the
organization. If there is more number of employees (say more than 900-1000) in the
organization, payroll outsourcing would be very much.

Objective of payroll processing:

To speed up the task of maintaining employee records,such as their personal

information ,their job profile and the salary thereof, by computerizing the whole
scenario so that the task can be performed in a better ,efficient an cost effective
manner.

To facilitate easy and user friendly interface for entry of records pertaining to
employees as well as for generation of payslips thereof . To facilitate maintaince of
proper record of attendance for each and every employee so that appropriate reports
could be generated as and when required for the ease of higher authorities.

To provide an automated system of payslip generation, so that useful reports

grouped according to employees or month could be generated out of the system. To
sum up the the objective of building this project is to avoid the unnecessary wastage
of time and money that is caused due to manual procedure that was being followed
for maintaining the records of employees and salary information in organization.

Advantages of pay roll processing:

 Un-authorized access: In computer system we have a password

facility,so no body can access our data.

 Data consistency: It computerized system data is consistent because it

cannot be changed by anyone.
  Easy to access data: It can be accessed in this system as it is arranged in
proper table.

 Reduce human effort: By use of packages large amount of human effort is

saved.

 High speed: as the computer can perform all function so the speed is vary
high.

 Accuracy: As all the work is done on computer,so data is very accurate.

 Time saved: Computer is vary fast processinh device.so working on it save

time.

 Query services: The same reports in the proposed system give the
information regarding the query to user.

 Removing data redundancy: Here delicacy is not a wise and store

Example of an organization : In an organization there is need to maintain the all

records of employee personal record, attendance records, leaves records, overtime
records, salary maintain with all options.

Table Name: personal_info

Primary Key: - employee_id

Foreign key: - NILL

Purpose: - This table contains the personal information of the employee.

Table Name: department_info

Primary Key: - dept_id

Foreign key: - employee_id references personal_info(emp_id)

Purpose:- This table contains the department information of the
employee.

Table Name: salary_deduction

Primary Key: - emp_id

Foreign key: - emp_id references personal_info(emp_id)

Purpose:- This table contains the deductions the employee.

Table Name: salary

Primary Key: - emp_id

Foreign key: - emp_id references personal_info(emp_id)

Purpose: - This table contains the salary details.

Table Name: allowances

Primary Key: - emp_id

Foreign key: - emp_id references personal_info(emp_id)

Purpose:- This table contains the allowances of the employee.

Table Name: attendance

Primary Key: - emp_id and day

Foreign key: - emp_id references personal_info(emp_id)

Purpose:- This table contains the attendance record of the employee.

FLOW CHART

Add new employee

Employee code and pf code generated

 Name, father name, DOB etc

Age calculated

Add, contact no, basic pay

,file no, pan no, date of joining
etc.

Date of retirement
calculated

Allowance

Saved in
“personal_info”

Do u want to add
more or not

Return
Emp salary
salary

Is
employee

On
probotion
 Employee detail
from
“personal_info”

Employee
detail,from”persona
l_info” and
allowance

Input deduction amounts

Salary calculated

Saved in salary

RETURN

Employee leave

Leave

Employee name,father
name,department,designatio
n,from”personal _info” ,total
Saved in “employee
leave,leaves
leaves” taken uo to
previous month from
 Leave taken

Calculate leaves

return

ER DIAGRAM

Designation department allowance

deduction

Prov.fund
code
Input,
basic Salary Income tax
salry calc. Pf_loa
incre
n ment Pf
increment
salary
loan
Old detail

Promo
ted
emp

emp Database

Advance
Over time granted
For

advance
code
pay payroll
mon c.lea
men
th ve
t

labour

salar
nam
y
e

addr
ess cont
act city
Salary(probated
employees)