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The system will have a file management where it covers therecords of employee and system transaction

log.

The system also covers the Payroll Processing and Reportingwhich includes the pay calculation of
salary slip and time off tracking.

The employee will use biometrics to time-in and time-out forrecording of timekeeping.
The system will have a report consist of summary of time sheet,summary of Payroll
Computation, Summary of Tax Refund and 13th
Month Pay, Withholding Tax, SSS, and Pag-IBIG Contributions.
Limitation
The employee’s salary will not be sent through Automated tellermachine (ATMs) or cheques,
for the reason that the company insistedthat salaries must be on a cash basis. No other currencies are
computedin the system but Philippine Peso only. The proposed system cannot beaccessed online and it focuses
only on the employees’ Time Keeping andPayroll System of the Blanco Family Academy. The
necessary requiredr e m i t t a n c e f o r m g i v e n b y t h e S S S , P A G -
I B I G , P H I L H E A L T H w i l l b e remitted manually. This proposed system is only applicable and can
onlybe used by the management of Blanco Family Academy.
G.Information Technology Innovation
Biometrics The Family Blanco Academy used time card in their
timekeeping,w h e n t h e s ys t e m i m p l e m e n t e d , t h e e m p l o ye e s w i l l u s e b i o m e t r i c
s( f i n g e r s c a n n e r ) f o r t h e i r t i m e k e e p i n g t o h a v e a n e a s y w a y
o f timekeeping and calculating their time of work.
LocalAreaNetwork
Local Area Network in technology system is the connecting of twoor more computers to common
peripheral resources to compile all thedata of Timekeeping and payroll of Blanco Family Academy.
H.Significance of the Study
Tothemanagement
Blanco Family Academy will greatly benefit with the proponent’sstudy because they don’t need
to hire any programmers to do
the worki n t h e i r s ys t e m . T h e p r o p o n e n t s w i l l d e v e l o p t h e i r s ys t e m . S o t h e p r
o p o n e n t s a s k f o r t h e s u p p o r t o f t h e c o m p a n y . T h i s w i l l l e a d i n lesseni
ng the expenses of the company which can be used in their otherexpenses. They will also find it easier to do task
with the system like thebiometrics wherein they can assure that their time keeping system issecure.
To the employees

The Employees will benefit in the system. They will find it easier to transact about their records since
searching in the system is faster than tracking in the record book or log book. The biometrics will give them an
easier time with their time log and they don’t have to worry about losing their time cards because it is not
necessary. Human Resources Personnel managing the time keeping will not be the same again as
they will experience relieve. It would be fast
ande a s y f o r t h e m t o h a n d l e t r a n s a c t i o n s s u c h a s r e p o r t m a k i n g a n d
monitoring time entries. Further determining or computing the payroll manually will be eliminated
that will lead to faster transaction. Accountant will able to manage employee services, hours,
pay rates. An automated time and attendance employee system also helps in implementing and
enforcing fair pay policies. By using the
Security, Time Keeping and Payroll System employee software, actual balances,a n d f l e x i b l e
l a b o r d i s t r i b u t i o n f o r p r o j e c t s a n d w o r k o r d e r s c a n b e maintained. Other bene
fits of the time and attendance employees’s o f t w a r e i n c l u d e t h e e l i m i n a t i o n
o f t i m e c a r d s a n d u n a u t h o r i z e d overtimes
To the students
The proponents will gain knowledge about the business systemexisting inside a Finance office, with
this; skills in system analysis will be improved and also it helps the future researcher to have an idea
about
payroll system and develop their own system. They can learn about the proponent’s system and at the same time
develop a greater system with the help of the proponent’s study.
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 incompliance 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 musthave
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 withhold Social Security and Medicare
contributions from employees' wages and pay a matching amount.

As the student of Information Technology at Saint John Bosco I.A.S., I have tasked with building a new
payroll system to replace the existing system which is hopelessly out of date. Saint John Bosco
I.A.S. needs a new system to allow teachers and employees to record time card information
electronically and automatically generate paychecks based on the number of hours worked.

CHAPTER l
The problem and its background:
As computer technology changes at such fast phase, many businesses sectorstry to cope up by
upgrading computer system constantly in order to staycompetitive. The multi function ability of
technology for its advance system is alsoan important factor for a company to use software. It
makes efficient use of theadvance technology and has ambition to discover more. Computers
have the greatimpact on the profession of accounting. With the rapid growth of technologytoday,
there is no doubt that computer will become a common asset in all profession.The program also
allows the monthly payroll schedule to be calculatedaccurately. 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 theguide of the
program. The system is good in for its specialty in the fields ofaccounting. It is easy to use, effective and
efficient in organizing and calculatingthe payroll. In addition, this study aims
develop a reliable and manageablecomputerized payroll system for Saint John Bosco I.A.S. for a
better manageableof a business. The Proposed Computerized Payroll System will give a big
relief ofthe 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, totals ofall hours billed to a project (i.e., charge number), remaining vacation
time, etc. Thereporting feature will be available either through the desktop or the web interface.

Statement of the Problem:


The old system is outdated and no longer adequately manages the
payroll process and the entry of employee time card information. Therefore, manualintervention
is required to process the payroll.
As the student of Information Technology at Saint John Bosco I.A.S., I havetasked with building a new
payroll system to replace the existing system which ishopelessly out of date. Saint John Bosco
I.A.S. needs a new system to allowteachers and employees to record time card information
electronically andautomatically generate paychecks based on the number of hours worked.
Significance of the Study:
To Accounting Department and Payroll Maker of Saint John Bosco I.A.S.
The proposed system will help the accounting section of Saint John BoscoI.A.S. especially the
Payroll maker/bookkeeper and the Finance Officer. It willhelp to lessen the time and effort of the
payroll maker/bookkeeper preparing payments of employees.
The System develop can accommodate changing figuresand produce a paperless environment
through well design database.
Scope and Limitation:
Scope
This study is designed to develop a Computerized Payroll System for SaintJohn Bosco I.A.S. It
covers the process of preparing the Pay slip of each employee,the regular and job order
employee, keeping of records safety and computing theexact wages of each employee. Including
the stored report list of employee such asMonthly Salary, Basic salary, overtime, Gross payment,
Net pay, and Deductionsuch as withholding tax, SSS, and Medicare, SSS loan, Advances, Multi-
purposeloan, PAG-IBIG Contribution, CAPELCO loan, Cash Advance, Bond, EnergySales,
Motorcycle, Canteen, under time, Cigna, WELCA, union loan, Lot/housingloan, health Care and
AR
The proposed Payroll System for Saint John Bosco I.A.S. is expected togenerate Pay Slip of
Employees, Report list of employees, Remittances forrespective agencies, Payroll register of
regular and job-order employees, andPayroll form for every pay period.
Limitation
The proposed Computerized Payroll System for Saint John Bosco I.A.S.does not support network topology
implementation and online program or onlinetransaction

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.
Payroll is an important process for every company for which theemployers pay their employees for
the work they have done. An efficient payroll system is one that organizes employee payments and
filing of employee taxes. These tasks include tracking of their working hours, calculating salaries,
withholding taxes and deductions, printing and delivery pay checks and paying employment taxes to
government.
Advantages:

• Payment Calculation
Automated payroll system uses software to compute all types of payment, such as salaries, hourly,
bonuses, pay raises, increase or deduction of wages, reimbursements, overtime and commissions.
The result is reliable and correct if the entries key in are correct. It will automatically generate pay
checks, stubs and allow direct deposit.

• Integrated access to information


Automated payroll system allows authorized personnel to access to personal data of the employee,
data such as annual leave, sick leave, performance records and entitlements. We can also access to
other information such as benefits, expense and even pay slips. Making adjustment or changes to
each employee will only take a few seconds.

• Productivity and Ability to comply with Regulations (CPF/IRS)


Computerized payroll system eliminates many cumbersome (that may require manpower resource to
pay attention to it) and increases the productivity of the company. It also calculates the employee’s
CPF and IRS deductions accurately and paid in a timely manner, which helps to avoid government’s
penalties.

A manual payroll system requires payroll that is processed manually and therefore much slower than
an automated procedure. An automated payroll system allows the employer to process payroll
through a computerized system. The most obvious advantage of payroll software is that payroll
calculations can be completed in a fraction of the time then they do manually. This system can offer
much more than the ability to calculate legal deductions – such as national tax and insurance – and
maintain cumulative totals. They can also integrate Time Tracking systems that record employee
attendance or time worked. In this way, the information on hours worked, either automatically
collected by a user or operator, connected to a system.
1. Easy Calculations
Accuracy is required to pay employees the right money they have earned. To avoid the difficulty of
manually computing the payroll, you can use a software to automate the process. The withholding
tax is calculated for each employee based on data entry in the conditions of detention. This reduces
the likelihood of errors in the payroll tax, which can lead to charges from the Corporate tax and the
income tax. The process is productive and efficient to save time and money. Your accounting
department can create reports and financial documents easily.
2. Easy Forecasting
Payroll system allows you to view and control instantly all payroll expenses. This helps you graph
the financial data to help you create a forecast. If you have an idea of your business performance, it
will be much easier to choose when you need to employ new workforce for the company. You can
make adjustments and calculate salary increases to help you make an assessment of how this will
affect your money. It’s easier to know if your decision is good for business.
3. Save Time
It takes extra time and resources for a company to manage payroll manually. But the payroll
software helps to accelerate all aspects of the payroll process with a number of automated functions.
4. Safe Backup
As a company, keeping large amounts of data on the payroll can be difficult. You can not store
plenty of documents and data manually. However, when using payroll software, it is convenient to
save the records to various databases available online. If your computer or system is destroyed, you
should always have a backup to recover all your recordings.
5. Cost Effective
By taking control of the payroll through the software rather than hiring another person to keep
records, there is great potential to save money … especially once you can use the software quickly
and efficiently.

An automated payroll system enables the employer to process its payroll through a computerized system. A
manual payroll system requires that the payroll be processed by hand and is therefore a considerably slower
procedure than an automated system. The former makes payroll processing simpler, and reduces errors, which
are more likely with the manual system.
Time-keeping Transportation

Hourly workers are paid according to hours worked during the pay period. The employer uses a time-keeping
system to track hours and pay hourly employees accordingly. It is critical, therefore, that each employee’s time
is computed accurately. Many employers use a time clock to track work hours. A manual payroll system
requires computing the time clock data by hand; this increases the likelihood of mistakes.

The automated time-keeping system allows the employer to import time clock data into payroll software.
Specifically, the employee uses a swipe card or badge, or the hand print or fingerprint method, to clock in and
out. Once the entries are transported into the payroll software, the software computes the time worked. All the
payroll staff member has to do is ensure the time is transported appropriately and make the necessary edits.

Payment Calculation

The automated payroll system uses payroll software to compute all wages. Payroll software, such as
QuickBooks, PenSoft, Z-Pay, Ultipro and Sage Peachtree calculate gross-to-net earnings based on the data the
payroll representative inputs. Therefore, the result depends on the accuracy of the input. Thus, if a terminated
employee is due severance pay but the payroll representative neglects to make the entry, the system will not
pay it. Typically, the system is reliable so long as the entries are correct.

The automated system performs all types of payments: hourly, overtime, double-time, salaries, commissions,
bonuses, pay raises, retroactive pay, wage deductions, auto payments and tuition reimbursements. Notably, the
automated system eliminates manual paycheck writing. The system automatically generates paychecks and
stubs and enables direct deposit.

Deduction Calculation

Salary and wage deductions are a necessary part of payroll processing. The employer must take mandatory
withholding from employee paychecks, including federal income tax, Social Security tax, Medicare tax and
usually state income tax. These taxes can be time-consuming and perplexing to compute manually. A number
of rules are attached to withholding tax calculations. With an automated payroll system, the software has the
tax rates hard-coded in the system. It calculates the withholding tax for each employee based on the
withholding conditions data input. This reduces the likelihood of payroll tax errors, which can result in fees
from the IRS and the state taxation agency.

Record-keeping

The IRS requires employers to keep employment tax records for a minimum of four years. Furthermore, the
U.S. Department of Labor requires payroll records to be kept for at least three years. The manual system
requires filing the necessary payroll data by hand, which consumes time and increases clutter. Payroll software
generates and stores payroll and employment tax data.

Managing payroll with online payroll services can have several advantages over managing payroll in-house. Many
companies have already made the switch, along with a shift to other online HR management tools. If you are
considering a move from manual systems to online payroll systems, the following potential benefits may help
influence your decision.
Increased Efficiency
Manual payroll systems generally require at least one person to export or manually calculate time and attendance
information, calculate tax and benefit withholdings, draw up paychecks, and file forms with the IRS. This process
can take several hours and must be completed every pay period. Typically, online payroll services perform these
tasks automatically or with approval that simply requires a couple seconds of your time and few clicks.

Improved Labor Management


Since online payroll systems handle most of payroll’s time-consuming tasks, making the switch can help free up
labor hours. If hours of an employee or department’s time were allotted to manage payroll, those hours can now be
spent on other tasks – potentially revenue-bearing ones. Making the switch may also allow a company to eliminate a
position altogether.
Decreased Potential for Errors
Automating payroll helps mitigate the potential for human error. Any time manual calculations must be done or
information is keyed in, mistakes can be made that can cause employee discontent. This causes a loss of money for
the company, or compliance issues. Streamlining payroll systems to export time and attendance information,
automatically calculating withholdings, and drawing up paychecks with just a few clicks can prevent these errors.
Employee Access to Data
Most online payroll services allow employees and managers to access historical and current payroll data using
mobile devices and defined login information. Having access to this information can improve employee satisfaction,
while also saving human resources professionals’ time. Allowing managers to access payroll using mobile devices at
any time establishes another way to review information, creating an additional error prevention check point.
Simplifies Compliance
It’s estimated that as many as 25 percent of companies pay penalties to the IRS every year, due to compliance errors.
These errors are not intentional; most of them stem from the changing nature of regulations. The mandatory amount
of time and effort required to keep all payroll employees up-to-date also inhibits matters.
Online payroll services can help to simplify compliance in several ways.
Most systems update at set intervals, which allows information about the newest and most relevant compliance
requirements to remain available. Some systems can be set up with alerts, so your key people will be able to review
new compliance requirements as they come in and therefore keep their knowledge fresh. Systems may also
automatically take new compliance needs into consideration and generate reports or alter controls as needed.
Online payroll systems are not all the same and may not be the best option for all companies. Before
making the switch to online payroll services, it would be wise to work with payroll experts to evaluate your
existing systems and decide upon the right system for your company.

Payroll software offers lots of different advantages – for the user, the employees and the company
(of all sizes). This article looks at some of the most obvious advantages to expect when you make
use of payroll software.
1. Employee calendars
Available with some payroll software solutions, employee calendars give you a super easy way to
manage sick leave, absences and overtime. In a glance you can see how long employees are away
for, whether they should be at work, what type of leave they are currently on, how much leave they
are entitled to etc. It makes planning a lot easier.

2. Cost Effective
By taking control of payroll yourself and not going with a professional service, there is great potential
to save money… especially once you can use the software quickly and efficiently. Naturally there are
downsides involved by not going with a professional service, but these diminish as you get used to
the system.

3. Tax updates
You might have missed the latest tax updates, but payroll software will help you by notifying you
when these updates arrive.

4. Create Payslips
While free payroll software offers a number of the benefits provided here in this list, what it cannot do
is create payslips. Commercial payroll software allows you to quickly and easily generate payslips
for all your employees, and with templates you can be sure that the statutory minimum amount of
information is included.
5. Reminders
Different reminders help the user avoid important tasks and to get them up to speed when they sign
in to the software. This makes it easy for the user to keep on top of payslips and tax submissions.
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6. Save Time
It obviously takes extra time and extra resources for a business to manage its own payroll (when
compared to payroll outsourcing), but as far as in house management is concerned, payroll software
helps to speed every aspect of the payroll process with a range of automated features.
7. Added Security

By managing payroll in house with payroll software, a company removes the uncertainty that comes
with the sending of private employee information to a third party. You will still need to consider the
security of your own IT systems however, though you can be sure with a good payroll solution will
accord with the highest IT security standards.
8. Avoid Making Mistakes

It is easy to make mistakes when you manage aspects of payroll manually, but with the right payroll
management solution it becomes much more difficult to make such mistakes. Comprehensive
validation procedures and checks stop you from entering the wrong information.
9. No Need for Expertise

When the right software is used and the payroll demands are modest, anyone with a good
understanding of IT can manage a company’s payroll requirements effectively. This is good for
smaller businesses that want flexibility.
10. Customer Services

In addition to software tutorials, respectable payroll software providers offer comprehensive support
services as part of the package, to help with software issues or with how to deal with any aspect of
payroll.

Managing human resources in a company, big or small, can be quite a challenge.


From attendance to timekeeping, performance tracking to hiring, it can turn into
quite a bit of a mess if you insist on doing it manually. Ask any HR officer and they
will tell you that they are constantly short on help.

To counter this problem, automating the payroll system has become a widely
adopted approach by various companies around the world. A great number of
companies are looking to automatic processes previously overlooked by the HR
officers. Consequently, it has made life easier for them.

To show how helpful HR system automation can be, these are some of the best
advantages you can enjoy by implementing such an arrangement.

Employee Leave Management

This is an optional tool which most companies end up making use of eventually. With
it, you can keep a track of the amount of sick leave, half-days, overtime and absences
of your employees over the course of the month. It’s a much more efficient system
and both you and the employees are able to view their leave balance in real time and
how their subsequent monthly salary will be affected by their absence from the
office.

Payslip Creation
This feature may not be available in free payroll software. However, commercial
payroll software allows you to generate your own payslips. The payslips contain all
the information necessary in an itemised format, so as to avoid any possible
confusion.

Better Security

There are quite a few loopholes associated with manual operations. File-loss or
illegal activities within the office can go unnoticed. However, with software in place,
each activity is monitored and the operations are far more clearer. Also, your
company’s confidential information remains secure because there are no physical
files to be exploited. The best payroll software should offer you the best IT security.

Time-Efficient

One of the major advantages of payroll software is that it saves time. You don’t have
to mark attendance manually, you are free from the hassles of managing leave and
absences, the pay slips are generated on their own, etc. This gives your HR officer
time to focus on other tasks with a lot more ease and peace of mind. Additional
features specific to your choice of software can further streamline your HR
processes, allowing them to run more efficiently.

Easy on the Pocket

Payroll software can save you a great amount of money. Since you’ll be taking things
into your own hands, you won’t necessarily need to hire a professional to perform
the required duties within the organisation. It’s a great deal because you are getting
some really handy features for a fairly low price.

Important Updates

Most payroll softwares are updated on a regular basis. This is an important feature
because it ensures that your company is always aligned with the latest updates made
to government policies. It helps you to stay on track and avoid any unwanted
incidents, both legally and financially.