S.I. No. Topic Page No.

1. What is a Payroll System 3

2. Criteria used by the company 5
3. Manual system 6
4. Features of the product 7
5. Major Modules of the Payroll System 9
6. I-P-O Cycle 10
7. Steps for processing 11
8. Input 12
9. Output 13
a) List of Reports generated under various 14
modules
10. Data Flow diagram 16
11. Data Entry Menu 17

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What is a Payroll System?
The term 'payroll' encompasses every employee of a company who receives a
regular wage or other compensation. A payroll system involves everything that
has to do with the payment of employees and the filing of employment taxes. This
includes keeping track of hours, calculating wages, withholding taxes and other
deductions, printing and delivering checks and paying employment taxes to the
government. Companies often use objective measuring tools such as timecards or
timesheets completed by supervisors to determine the total amount of payroll
due each pay period.

This payroll system provides for managing the information for an employee,
attendance, leave, salary, incentives, expense reimbursements, payroll, advances,
loans, taxes, statutory payments and uploading to the banks.

Poise Payroll, used by Maruti Computers Ltd. provides a workflow based solution
for approval and processing of attendance, loans, bills and expenses. A Web
portal for employees allows for a real time access to all information, providing the
highest employee satisfaction.

The biggest advantage of a payroll service is that takes all payroll responsibilities
away from the business owner, allowing him to focus on other aspects of running
the business. The downside is that a payroll service can get expensive, especially
as a company adds more and more employees.

Like outsourced payroll services, payroll software requires very little input from
the employer, just employee wage information and hours. All of the tricky
calculations and withholdings are calculated by the software, which receives

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automatic updates every time tax laws are changed. The software can also fill out
employment tax forms for you and remind you when to file them.

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Criteria used by the company

 Security - If you're using software, is it password-protected? Can only

certain personnel access the payroll information? If you use a payroll
service, where will your data be stored? Do they have a disaster recovery
plan in the event of a system crash?
 Compatibility - How well does the payroll system jibe with your other
business systems, like accounting and HR? If you use a software solution,
does it interface with your other business management software? If not,
you might consider buying all of your financial and HR software from the
same provider so that information is shared among all systems. If you use
an outsourced payroll service, how easy it is for them to communicate with
your in-house accountants and HR personnel?
 Credibility - If you're using a payroll service, is it rated by Standard & Poor's
or Moody's? If you're interested in software, is it made by a well-known
brand with a solid reputation?
 Flexibility - Will the software or service grow with your business?
 Control - As a business owner, how much control do you want over the
payroll system? Even if you don't want to handle the day-to-day
responsibilities, will your service allow you to request a report, view
payment histories and make real-time changes to employee wage
information when necessary

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Manual System
Payroll duties can be a real burden on a small business owner. Instead of focusing on
product development, customer service and other important business tasks, the boss is
stuck in the back with a calculator and a stack of IRS forms. That's why all businesses,
and especially small businesses without their own accountants, need a reliable, effective
and easy-to-use payroll system.

Earlier when there were no computerized means for payroll processing, the
processing method involved pen and ink, adding machine, spreadsheet, etc
instead of computers, software and other computerized aids. 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 labor, 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.

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Features
 Web based user interface with secure connectivity and accessible from
anywhere and anytime using any web browser on the internet. No need for
any client installation. Your accounting staff can enter use from multiple
locations and can verify the books from his office location, anywhere in the
world.
 Easy to use and flexible: Poise Payroll provides the end user to have the
flexibility to create his own salary structures and salary formulae in its
business. Guaranteed updates in the event of any changes in Income Tax
rules and statutory compliances. Fast and easy step by step process to
payroll processing.
 Customizable and Extensible: Open Database, web services APIs available
for custom integration, custom reporting with the internal systems and
third party products and services.
 Since software is written using Microsoft’s Visual .NET technology, there is
less hardware and software which would otherwise be necessary to
purchase and maintain, making the total cost of ownership superior to any
other.
 Fully automated and end to end Online Payroll Application that lets creates
unlimited salary heads and deductions. Change deductions values just
before payroll processing.
 Create unlimited departments, designations, grades of the company. Auto
calculation of employee TDS values and Profession Tax.
 Process Monthly Payroll in a 2 step process.
 Generate Pay Slips, Pay Bill and Bank Transfer Instructions

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  Lets Email Pay Slips to employees directly
 Uses Crystal Reports that is the most powerful reporting tool in the industry
today. It lets you export all Reports into Excel, Word and many other
formats.
 Provides the facility to take earnings and deductions details employee
wise/department wise.
 Enables to view the complete history of an employee during employment.
 Facility to ensure Advances and loans (with custom interest rates) and auto
deduct from payroll processing.
 Leave Management enables you to allocate leaves, apply leaves, leave
approval and leaves encashment.

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Major Modules of Payroll Software
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I-P-O Cycle

Fig 1

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Steps for Processing the Integrated Payroll System

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Inputs Required

Fig 2- Input Screen

 Employee ID
 Total Hour
 Overtime
 Hour rate
 Overtime Rate
 Cash Advance
 Total Deduction

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Outputs
 Reports
 Pay slip
 Attendance Register
 Department-wise Salary
 Employee-wise Salary
 Salary Disbursement
 Income Tax Statement
 Form No 16
 Loan Statement
 Loan Letter

 PF Contribution

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Fig 3- Output Screen

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List of Reports available under various models

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Data Flow Diagram

Fig. 4- Use Case Diagram

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 Different Menus
 DATA ENTRY Menu:
 EMPLOYEES Module
This module allows you to input all employees’ information for each employee
either monthly, weekly, daily or contracting. Allows the definition of salaries in
any currency (ex: U.S.Dollars and LBP) with automatic handling of social
security and income tax provisions, social security allocations and children
module.
 DEPARTMENT Module
This module allocates employees by departments (ex: accounting department,
sales department)
 STATUS Module
This module is used to define the status of every employee (ex: Mr., Mrs., Miss
…)
 NATIONALITY Module
This module is used to define the nationality of every employee.
 TAXES Module:
This module allows the creation of taxes defined by the government.
 VOUCHER TYPE Module:
This module inputs the different types of voucher to be used in different
numbering of pay slips.
 OPERATIONS Menu:
 SALARIES Module:

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 This module allows you to input and generate an unlimited pay slips by
different currencies according to employee type monthly or not with an option
to fill the salaries by row or column. Also, you have the facility to copy
information already entered from any voucher without reentering it. Also an
advance on salary can be entered in this part and deducted automatically later.
 ATTENDANCE Module:
This module allows you to input the employee's attendance daily or monthly
and it can be linked to any external device.
 CURRENCY RATES Module:
This module is needed to enter the currency rates that correspond to the
amount of transactions. These rates are entered on daily basis.
 FIX DIFF:
Fix the difference of the taxes and NSSF per employee at the end of any period.
 EXPORT TO ACCOUNT:
This module allows you to transfer the salaries on the accounting module.
 CLOSING END OF YEAR:
This module will automatically close current year and open a new one.
 REPORTS Menu:
All the following modules can be produced on either the screen or the printer.
 SALARIES:
Salaries are printed in this module.
Additional options available:
- The Subscriptions of the NSSF.
- The End of Service provisions.
- The taxes.

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 - The Official report required by the government.
 PAY SLIPS:
Payment Slips are printed in this module with the option to modify the layout
to suit the company's need.
 ATTENDANCE:
This module lists the monthly or daily attendance.
 END OF SESSION Menu:
 PACK & REINDEX Feature:
This feature reorganizes the data files when requested. It is very important to
use this feature once every a certain period of time.
 BACKUP Feature:
It is very important to store data on tapes for later use in case of probable
damage. You can run this command directly from the system without quitting.
 SYSTEM Menu:
 CHANGE COMPANY Module:
By using this module, you can shift from one company to another. This applies on
a company that has under its wings many other companies. All corresponding files
will be open to the new entering data.
 Other Features:
The Payroll system provides you with the following additional features:
a. You may change the system password by using password option.
b. You may run your system in English, Arabic, or French.
c. You may use calculator and calendar directly from the program without
quitting

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