Rizal Technological University College of Engineering and Industrial Technology

RIZAL TECHNOLOGICAL UNIVERSITY
College of Engineering and Industrial Technology
CVC PRECISSION TOOLINGS INCORPORATED

EXPENDITURE SYSTEM PAYROLL
A System Development Study Presented to the

Faculty of Computer Department College of
Engineering and Industrial Technology
Rizal Technological University
Mandaluyong City
In Partial Fulfillment of the Requirements for the Degree of

Bachelor of Science in Computer Engineering
By:
Kathleen C. Consul
Abby Trinidad B. Ching
Oliver Chan S. Tuazon
Joe Rizaldy M. Vergara

CHAPTER I
INTRODUCTION
Nowadays all establishment are becoming modernized, they use
modern technologies to make their transaction fast, easy, and accurate
in order to avoid waste of time and for the sake of safety and security. It
also helps human to solve and understand complex problem and
analysis such us the computational need of humans. Especially to
business establishment or corporation processing enormous data and
complex transaction. Payroll is an example of a complex transaction
because it is a critical business operation dealing with numerous
accounts and produce plenty and confidential files. Payroll is
encompasses every employee of a company who receives a regular
wages or other compensation due to each.
Applying manual procedure on a Payroll transaction involving the vast
beat answer in that problem would be computer because computers
can simulate enormous data and can process complex transaction in a
fast and efficient way. It can generate numerous accounts and data
accurately.
A Computerized Payroll System will not only provide accurate
calculation and fast process of Payroll transaction but it will secure
data through security implementation and accordingly arrange files
provided by a well designed database that will produce a paperless
environment.
Statement of the Problems

1. Time consuming process of Payroll Preparation
The CVC Precision Toolings Incorporated is still using the manual
method of payroll process. A lot of jobs are assigned to the payroll
maker and accounting clerk, with causes inconvenience to their
services. In this method, it will need more time and manpower to
complete the payroll of each employee.
2. Laborious payroll process

Nobody could admit the inescapable fact that what makes the manual
procedure take a long time to finish the task is due to the many steps
and processes to undergo. There is the collection of data such as
DTR(Daily Time Record), REMITTANCES, and individual manual
calculation of payroll. Individual data is transferred through sheets,
encoding and double checking after calculating. All this process
requires labor and effort to complete the task.
3. Misposting and understanding of employees data
The logical process of manual procedure result to too much time
consumption. It often times result in misposting and understanding of
each employees data of plenty of files that is hard to accommodate.
Objectives of the Study
This study is intended to design and develop a Computerized Payroll
System for CVC Precision Toolings Incorporated that is made this
February 2015 and can be used by the company as long as they like.
Specifically, this study aims:
To minimize the effort of the accounting department in
processing the Payroll Slip and Payroll Form.
To make an efficient and accurate computation of Payroll.
To create a well-arranged database and to implement strong
security of the system for data security.

Significance of the Study
To Accounting Department and Payroll Maker of CVC
Precision Toolings Incorporated
The proposed system will help the accounting section of CVC Precision
Toolings Incorporated especially the Payroll maker/bookkeeper and the
finance Officer. It will help to lessen the time and effort of the payroll
maker/ bookkeeper preparing payments of employees. The system
develop 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 do a better system.
Background of the Organization

CVC Precision Toolings Inc. was founded in 1992 by Edgardo
Consul, Ernesto Consul and Celedonio Vasquez. CVC means Consul
Vasquez Consul. They start the operation with just one machine and
two employees. Their only costumer that time is just some small
company and its not enough to support the expenses of the CVC
Precision Toolings Inc. After several months they decided to hire a sales
man, but because their company is not well known and small its hard
to convince other company to order.
Edgardo, Ernesto and Celedonio are in the pinch to shut down
the CVC Precision Toolings Inc. because of lack of work. But they tried

their best to survive, they decided to low their price to convince other to
order, and it work. After that it became stable and they have to hire
another employee and buy one more machine.
The company began producing many different products to meet
their client demand. Ernesto Consul said that there are no such works
that cant be done by CVC Precision Toolings Inc and every order of the
client must done well and meet the deadline so that the client will be
impressed and trust them in the future.
In 1995, because of their hard work and determination CVC
Precision Toolings Inc got its first large project that worth
1,000,000.00php. Thats the beginning of their career and they gain
more client.
CVC Precision Toolings Inc. bought car so that they can sale their
product in different place like in metro manila, cavite, laguna,
Pampanga, etc.
There are times that they dont have work, and because of it
Celedonio Vasquez decided to sale his share to Edgardo Consul and
Ernesto Consul and left the company in year 2000. CVC now became
Consul Via Consul.
After Celedonio Vasquez left, Edgardo and Ernesto decide to hire
an accounting and other employee and buy new machine. Once again
they struggle but they didnt let go and fight. The result of it is they get

their way to other big company like San Miguel, Panasonic, Jollibee,
PnG, etc.
In 2002, they celebrate their 10th year anniversary in infanta. It
became memorable and emotional. That is the day when they didnt
have to think about work and just enjoy the moment.
CVC Precision Toolings Inc. continues to grow even though there
are hard times and no much work. CVC is not like other company the
president is like just an ordinary employee he go to their client and look
for a project he please other for work and sometime he is the one who
deliver the product personally. Now they have their own building, 56
employees, 3 cars, and different kind of machines. Sometimes CVC
Precision Toolings operate 24hrs because there are loads of works to do.
Organizational Chart

Importance of the Study

The payroll system that we were going to do will help Mrs. Mendoza
(accounting) to save time because in CVC Precision Toolings Inc right
now they use a manual payroll, A manual system requires tracking
employee time by hand and it takes a lot of time to finish all of it, but
our payroll system has the ability to automatically transmit employee
entries from the timekeeping system into the payroll system and it can
calculate the total hours worked and to be paid, thereby saving time
spent on manual calculations. These systems calculate all pay
frequencies, such as weekly, biweekly, semimonthly and monthly, based
upon the input data received. Our payroll system automatically
calculates employee statutory deductions, such as taxes and wage
garnishments, and voluntary deductions, such as medical benefits and
other deduction that require in the company. She can simply enter the
data upon which the deductions are based, such as Form W-4
information for federal income tax withholding.
Mrs. Mendoza does a manual payroll system by using a typewriter or by
hand to print the paycheck. But in our program it has direct-deposit
capability, which saves money spent on live checks and reconciliation.
Additionally, computerized printing of paychecks.
Payroll system generates payroll reports that allow Mrs. Mendoza to
double-check the payroll before printing paychecks. A computerized
system enables hard-copy printing of payroll registers pertaining to
each pay period, and also saves the information in the system
indefinitely.
Our system can help to ensure payroll tax compliance by generating tax
reports, including quarterly and annual wage statements and employee
W-2 forms. These systems provide Mrs. Mendoza with the data
necessary to handle the companys payroll tax and reconciliation duties
and print the necessary reports. Furthermore, these systems track
benefit days, such as vacation and personal time that are taken and
paid.

In manual payroll if Mrs. Mendoza is not careful she can make errors
and it will takes too much of her time to check it again if her
computation is correct or wrong so we decided that the Payroll System
that we were going to do will help Mrs. Mendoza to save time and
money and helping her to avoid some errors that she can normally
done in manual payroll by mistake, its very important to avoid the
errors in payroll because it is all about the money of the company and
by using the program it will lessen her work to double check the payroll
manually.
We made our program easy to use by everyone because there is some
event that When Mrs. Mendoza is not present in the company and they
really need the payroll at that time, everyone in the office can easily
input the necessary data in the payroll system or view the payroll as a
guest.

Form No.
1
2
3
4
5
6
7
8
Name
CCTV-03
CCTV-03A
CCTV-03B
CCTV0-03C
CCTV05
CCTV06
CCTV07
CCTV08
Description
Select Login
System Administrator
Change Password
Forgot Password
Add Record
New Account
Search Record
Edit Record
User
Everyone
Everyone
Everyone
Everyone
Admin
Admin
Admin
Admin
9
10
11
12
13
14
CCTV09
CCTV12
CCTV13
CCTV14
CCTV15
CCTV15
Deactivate Record
Employee New Account
Change Password
Position
Add Position
Edit Position
Admin
Admin
Admin
Admin
Admin
Admin
Chapter II A
Forms
Figure A.1 List of Forms
Figure A.1 shows the list of forms created by the proponents for the
New Payroll System of CVC Precision Toolings Incorporated this will
guide the analyst in checking the new database.
Layout
Table: Useraccounts
Data
Description
Type
Length
Constraints
Sample Data
Username
Username/userID
Alphanumeric
15
Joevergara
(PK)
password
password
Alphanumeric
15
Vergara
type
Type of account
Alphanumeric
15
admin
Table:Employee
Data
Description
Type
Length
Constraints
Sample Data
EmpID (PK)
EmpName
EmpAddress
EmpPhoneN
o
EmpEmail
Salary
Description
Deduction
Description
Salary
Amount
Employee ID
Employee
Name
Employee
Address
Employee
Phone
Number
Employee
Email
Salary
Description
Deduction
Description
Salary
Amount
Numeric
Alphanumeric
5
20
12345
Abby Ching
Alphanumeric
25
Numeric
11
Baranka
Mandaluyong City
0935-111-3432
Alphanumeric
15
Abby@yahoo.com
Numeric
10
12,000
Numeric
10
2,500
Numeric
12,000
Data Dictionary
Data Dictionary of Forms shows the analyst the list of input data that
will appear in the New Database of CVC Precision Inc. This Data
dictionary will give a overview, and also guide the User in what they will
see in running the database.
Figure A.2 Data Dictionary of User Account

Figure A.3 Data Dictionary of Employee
Table: Payments and Deductions
Data
Description
Deduction
Deduction
Description
Description
(PK)
EmpID
Employee ID
Type
Numeric
Length
10
Numeric
Constraints
Sample Data
2,500
12345

Salary
Amount
Salary Amount
Numeric
12,000
Figure A.4 Data Dictionary of Payments and Deductions
Table:Accounting
Data
Description
Type
Length
Constraints
AccountingID
(PK)
EmpID
Accounting ID
Numeric
Sample
Data
3241
Employee ID
Numeric
12345
Salary
Description
Deduction
Description
Salary
Description
Deduction
Description
Numeric
10
12,000
Numeric
10
2,500
Figure A.5 Data Dictionary of Accounting

Table: Salary
Data
Deduction
Description
EmpID
Salary
Amount
AccountingI
D
Salary
Description
(PK)
Description
Deduction
Description
Employee ID
Salary Amount
Type
Numeric
Length
10
Constraints
Numeric
Numeric
5
5
12345
12,000
Accounting ID
Numeric
3241
Salary
Description
Numeric
10
12,000
Figure A.6 Data Dictionary of Salary
Sample Data
2,500

Chapter II B
Reports

Chapter II - C
Entity-Relationship Diagram
Entity Relationship Diagram is a major data modeling tool that will help
the proponents organize the data into entities and define the
relationships of the Existing System of CVC Precision Toolings Inc by
means of the Finalized Entity-Relationship Diagram and Normalized
Form.

Figure C.1 Entity Relationship Diagram
Normalized Form
Figure C.2 Normalized Form

Business Rules
CVC Precision Toolings Inc.
recognizes its moral and legal
responsibilities under
Occupational Health and
Safety (OH&S) legislation to
provide a safe and healthy
work environment. This
commitment means that we
will:
Provide a safe and healthy workplace and working conditions for

all, including employees, contractors, customers and visitors.
Provide training to enable all employees to work safely.
Comply with all relevant legislation and industry standards.
Provide support and assistance to employees.
Consult with staff and contractors where relevant to enhance the
effectiveness of procedures.
Provide adequate resources to aid employees in fulfilling their
responsibilities.
Conduct investigations into all reported incidents.
Ensure that appropriate returns to work programs are in place.
Conduct regular reviews and evaluations of the health and safety
system in place.
What employees are expected to do? While at work, all employees

irrespective of their position will:
Take reasonable care to ensure good health and safety procedures

are implemented at all times.

Identify and support measures to eliminate or minimize unsafe
conditions.
Assume personal responsibilities for their own safety and for
those of other work colleagues by always operating in a safe and
appropriate manner.
Concept of Operation
In a company, payroll is the sum of all financial records of salaries for
an employee, wages, bonuses and deductions. In accounting, payroll
refers to the amount paid to employees for services they provided
during a certain period of time. Payroll plays a major role in a company
for several reasons.
From an accounting perspective, payroll is crucial because payroll and
payroll taxes considerably affect the net income of most companies and
they are subject to laws and regulations. The primary mission of the
payroll department is to ensure that all employees are paid accurately
and timely with the correct withholdings and deductions, and to ensure
the withholdings and deductions are remitted in a timely manner. This
includes salary payments, tax withholdings, and deductions from
a paycheck.
Computerized payroll systems offer several advantages than manual.
These programs allow managers to see the company's financial position
in "real-time" and make adjustments to the business strategy as
needed. Computerized systems can also provide instant reports on

stock evaluation, profit and loss, customer accounts and payroll and
sales analysis, again, allowing faster adjustments in business strategy.
In addition, transactions need to be input only once, and, with some
training, anyone in the company can handle the inputting.
Using a computerized payroll system can save you time. Payroll
software allows faster data entry than manual payroll, and allows
documents such as invoices, purchase orders and payroll to be collated
and printed quickly and accurately. Because of its efficiency and ease of
use, computerized payroll systems also allow you to improve inventory
control and payment collection, saving time and improving cash flow.
Because computerized systems update some records automatically,
your account records will always be up to date, saving time in updating.
Advantage of Using our Payroll System

Easy calculations. Efficiency in payroll calculation is important in every
company. It requires accuracy to pay employees the right amount of
money they have earned. To avoid the hassles of calculating payroll
manually, you can use software to automate the process. The process is
productive and effective in saving time and money. Your accounting
department can create reports and financial documentation easily.
Forecasting. When you have payroll software, it allows you to see and
monitor all payroll expenses instantly. This helps you graph financial
data to help you create a forecast. If you have an idea of your business
performance, it will be easier to decide when you need to hire new staff
for the company. You can make adjustments and calculate salary
increases to help you make an assessment on how it will affect your
money. It is easier to know whether your decision is good for the
business.

Tax management - Computations for tax might be a headache. Using a
payroll system will minimize the stress related to employee reporting
obligations. You need not to look for piles of pay-slips to see the records
for tax payments. Through an automated payroll, all records are kept in
the computer. These data are easy to collect and pull-out from the
system to provide you with accurate tax records. Avoid the errors of
manual tax computation of salaries by using an automatic payroll
system.
Reliable backup - As a business, keeping large amounts of data for
payroll can be challenging. You cant store piles of papers and data
manually. But when you are using payroll software, it is convenient to
save records in databases. In case your computer or system is
destroyed, you should still have a backup to get all your records back.
Less training needed - You dont have to hire someone who is really
good in payroll because everyone in the company can input some data
in the program.
Security and Confidentiality - No chance to confidential papers or pay
slips lying around. Sensitive information is protected by others.
Backups guaranteed.
How to Process Payroll using the program

- Gather employee wage information. Make sure it includes all wages,
tips and compensation in the pay period.
- Check to ensure that you have W-4 information for each employee to
determine their marital status and withholdings. This will determine
their tax liability for Federal Income Tax.
- Calculate employee's gross pay from employment agreement or time
sheet. Include tips, commission and overtime, if applicable.
- Determine withholding amount for Federal Income Tax.

- Calculate employee amounts for Social Security Taxes.
- Calculate employee contributions for Medicare Tax.
- Deduct additional employee items such as retirement and savings
plans, health insurance, charitable contributions or garnishments.
- Process payroll through your system.
- Print the pay slip.
Data Flow Diagram
Data Flow Diagram is a representation of the processes in a system. In
this study, the proponents represent the processes of the new system of
CVC Precision Toolings Inc. by means of the Context Data Flow
Diagram.
Figure C.3 Context Diagram

Figure B.3 shows the Context Data Flow Diagram of the New System.
This defines the roles of the Employees and the Accounting
Department.
Chapter III
Prototype Database System

Use Case Diagram

Use Case Diagram discusses the representation of the New Systems
entities and processes through a Use Case Diagram and Detailed Use
Case Diagram.
Daily Time
Record
Employee Data
Salary Cash
General Payroll
Report
Figure 3.1 System Use Case Diagram

Figure 3.1 shows the New System Use Case Diagram. It represents the
task done by the administrator and the User such as Daily Time
Record, Employee Data, Salary Cash and General Payroll Report.
Daily Time Record
Generate
View
View
View
and
DTR
Reports
and
Update
of Update
Employee
Salary
Employees
Cash Data

Form No.
1
2
3
4
5
6
7
8
Name
CCTV-03
CCTV-03A
CCTV-03B
CCTV0-03C
CCTV05
CCTV06
CCTV07
CCTV08
Description
Select Login
System Administrator
Change Password
Forgot Password
Add Record
New Account
Search Record
Edit Record
User
Everyone
Everyone
Everyone
Everyone
Admin
Admin
Admin
Admin
9
10
11
12
13
14
CCTV09
CCTV12
CCTV13
CCTV14
CCTV15
CCTV15
Deactivate Record
Employee New Account
Change Password
Position
Add Position
Edit Position
Admin
Admin
Admin
Admin
Admin
Admin
Figure 3.2 System Detailed Use Case Diagram

Figure 3.2 shows a detailed representation of the functions of every use
cases. The administrator can view and update Employees Data, Salary
Cash, DTR of Employee, and Generate Reports.
Screen Inventory
Figure 3.3 Screen Inventory

Screen Transition Diagram
Log-In
Change Password
System
Administrator
Forgot Password
Add Record
New Account
Search Record
Edit Record
Deactivate Record
Employee New
Account
Change Password
Position
Add Position
Edit Position

Rizal Technological University College of Engineering and Industrial Technology

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Rizal Technological University College of Engineering and Industrial Technology

Uploaded by

Copyright:

Available Formats

RIZAL TECHNOLOGICAL UNIVERSITY

College of Engineering and Industrial Technology

CVC PRECISSION TOOLINGS INCORPORATED

A System Development Study Presented to the

In Partial Fulfillment of the Requirements for the Degree of