THE IMPORTANCE OF JJ RUBBER AND METAL FABRICATION’S COMPUTERIZE

PAYROLL SYSTEM AND ITS EFFECT TO THE EMPLOYEE

BY:

JOE CHRISTIAN MASALUNGA

RAYMART AGUINALDO

PATRICK ONA

KIM ABAYGAR

WELLA SIGALES

MARLOU OCHINANG
 CHAPTER I

INTRODUCTION

This thesis is about the Payroll System to the performance of the JJ Rubber and

Metal fabrication’s employee. Payroll is a company’s list of its employee, but the term is

commonly used refer to: the total amount of money that a company pays to its

employees, a company’s records of its employees’ salaries and wage bonuses, and

withheld taxes and the company’s department that calculate and pays these.

Payroll system calculate the amount you owe your employees based on factors

such as the time they worked, their hourly wages or salaries, and other withholding

amounts. On payday, the system provides your employees with paper checks or payroll

deposits and a summary of the information you used to calculate their gross and net

wages.

Payroll system helps payroll representative to manage salary employee, add

employee, deleting employee, calculating salary and printout in pays lip.

STATEMENT OF THE PROBLEM

The purpose of this study is getting to know how payroll system affects the

performance of the employee in the JJ Rubber Products and Metal Fabrication. The

purpose of the study is to answer the following question:

1. What are the positive and negative effects of payroll system to the responded?

2. What will be the better way to enhance and improve the performance of the

employee in the JJ Rubber Products and Metal Fabrication?

3. How to be increase the productivity and loyalty of the employee?

THEOROTICAL FRAMEWORK

“Business owners use payroll systems to save time and create

structure in business operations. Payroll systems save time because business

owners can repeat payroll tasks in a timely manner as needed”. Structure is also

important in payroll due to the legal liabilities involved with employee payroll. Small

businesses can face payroll audits from government agencies. Business owners must

present employee information and payroll documents to verify the business owner is

following government requirements when paying employees.

“An economic theory that stipulates that the value of a good or a

service is depends upon the labor used in its production.” The theory was first

propose by Adam Smith (1723-1790), the founder of moderm economics, and was an

important concept in the philosophical ideals of Karl Marx. The Labor theory of values
suggest that goods which take the same amount of time to produce should cost the

same.

CONCEPTIONAL FRAMEWORK

This chart shows the process how the payroll system in JJ Rubber and Metal

fabrication.

Inputting of Employee Name Time In, Time

Out on a Time Card

Calculate via Computer in Excel

Pay Check release via accountant.

SIGNIFICANT OF THE STUDY

This study will help to improves JJ Rubber and Metal Fabrication’s payroll

system at the same time how will be save more time for their other works.

This research will also be helpful in the Company that helps them how can

manage and handle the payroll system in the JJ Rubber and Metal fabrication.

For others,the study will be source of valueable up to date impormation which

can be very valueable for their own similar studies on the subject matters as well.

OBJECTIVES

To improve and design a systematic computerize payroll system for JJ Rubber

and Metal fabrication,that provides fast transsaction and can save more time and less

hustle. Safety security of money transport and can genarate essential reports.

SCOPES

Its covers the time-in and time-out of employees through computerize payroll

system, the employee create his/her account to the accountant’s computer.

LIMITATION

The system will not be used by any other company other than JJ Rubber and

Metal Fabrication.It will be used fo payroll transaction by the JJ Rubber and Metal

Fabrication’s Employee only.

DEFINITION OF TERM

PAYROLL- a company's records of its employees' salaries and wages, bonuses,

and withheld taxes.

PAY SLIP- a piece of paper given to someone who is employed to show how

much money they have earned and how much tax has been taken off.

EMPLOYEE- someone who is paid to work for someone else.

SALARY- fixed amount of money paid to someone for

the work theperson is employed to do.

 CHAPTER II

RELATED STUDIES

LOCAL

Nowadays, many payroll system implemented in different companies here in the

Philippines because payroll system is one of the most important in establishing a

business firms on how you provide the right and appropriate benefits for the employees

in the company. Business firms must operate within the boundaries of laws and

government regulations, Laws have been developed not only to protect consumers but

also to promote competition among business and industries. Over

half a century on, it’s fair to say that payroll is now one of the most commonly

automated business operations; and certainly the most frequently the most used

Solution that maintaining payroll record is one of the most important financial tasks in

any business.

According to the researcher (Aguilera, Bronzas, and Marqueses) of automated payroll

system of Pamana Medical Center (2010). A great payroll is really one of the most

important issues to pay attention in almost every company. It is impossible to handle

payroll responsibilities with a pen, ledger sheet and calculator, but nowadays it is more

convenient for most companies to use computerized payroll software. The schools is

also not exempted in using a payroll system namely the study of payroll system for the

teachers and staff of Liceo De Calamba (2010) the researchers (Maligaya, Opeña,

James Jordan) viewed that Liceo de Calambaaims to provide high quality of education
for their students and to establish great relationship with their employees by providing

them with the right and appropriate benefits they must enjoy as population of Liceo de

Calamba increases, its system must perform competitively, Payroll system is needed in

order to have an accurate and error free in their payroll process and services.

Researchers (Alvarez, Aldrine, Gecolea ) of Krizalen enterprises(2014) uses a

biometrics with online data analytics dashboard to give krizalen enterprises an efficient

payroll system that can automatically monitor the attendance and trip tickets of the

employees, drivers and helpers with the biometrics technology and data analytics that

would help them in the security and accuracy of the company payroll and information.

Summing up the past situation of payroll inside krizalen enterprises, there was need for

a system that could help them with employee information management attendance,

monitoring, payroll process, and assistance for the manager decision making. With this

idea, the proponents conducted a study for the development of software that can

minimize data redundancy, inconsistency, and manipulation. Employees can view their

current pay and review their information from the database. And with updating of the

reports that can be viewed through the internet, the manager can view the recent

activities within the proposed system

Based on the research study entitled computerized payroll system of

Department of Health (DOH) (2007) explains that a computerized payroll system is a

window based program which is specially designed to facilitate and simplify the monthly

preparation of general payroll and related reports. Also that is must be flexible to
provide option which allows the user to hold additional fields for other compensations

and deduction which was unique to an office the company.

Based on the undergraduate study made on Cagayan De Oro City Hall entitled

"Cagayan De Oro City Hall Computerized Payroll System" stated that is important that

the system must be easily accessible, fast-tracked and secure.

FOREIGN

Based on the research study entitled "PAYROLL ERP SYSTEM" of Advantos

Systems (2013), explains that it is vital that a payroll system must allow the user to set

up an employee paycheck record. It also emphasized the use of separate salary record

for each employee and the proper maintenance of data on tax rates and exemptions.

Based on the system study entitled "INFONETICS PAYROLL

SYSTEM"(2012), emphasizes that a payroll system must be user-interactive in all its

processes (including maintenance of payroll records ad payroll reports and checks

printing). It also explains that the system must be capable of maintaining accuracy of tax

tables and deductions using a concrete formula

RELATED LITERATURE

LOCAL

According to the book "System Documentation" (2010), states that “a

computerized payroll system must have the ability to update and maintain employee

information and to generate required outputs including paychecks, reports to

management and to the government.”

According to a blogged article in blastasia.com (2007), says that “a

computerized payroll system is designed to help human resource professional as well

as finance and accounting personnel to manage employee compensation, deductions,

allowances, and benefits in an organization.”

According to the definition of Enterprise Resource planning on

Wikipedia.com, stated that "organizations perceive ERP as a vital tool for organizational

competition, as it integrates dispersed organizational systems and enables flawless

transactions and productions". This statement serves as basis of this proposed systems

capability and flexibility to integrate to other subsystems within the airline system.

According to the book of Trias(2010)entitled “What is a Payroll System?”,

emphasized the importance of accurate calculations in a successful payroll system. It is

that a payroll system is defined as “a system programmed to calculate taxes and

deductions”, which can also be internet-based or offsite.

 In the book of Musa (2009), entitled Philippine Based-Payroll System,

emphasized the major elements or variables that a Computerized Payroll System

consists. The author indicated the specific items the database of a Philippine-Based

Computerized Payroll System must have.

According to the book of Lamberte, entitled” Philippine Payment System,

stated that basic and essential parts of any payment –related system, the flow of

information providing payment instructions and the flow of funds. He also emphasized

that this flows requires an instrument to convey the information about the transactions,

this is where a computerized payment system(in this case a Payroll System)comes in.

FOREIGN

According to the researcher of Nyanmaru Computerized Payroll System

(2013)Nowadays all establishment are becoming modernized, they use

moderntechnologies to make their transaction fast, easy, and accurate in order to

avoidwaste of time and for the sake of safety and security. It also helps human tosolve

and understand complex problem and analysis such us the computationalneed of

humans. Especially to business establishment or corporation processingenormous data

and complex transaction. Payroll is an example of a complextransaction because it is a

critical business operation dealing with numerousaccounts and produce plenty and

confidential files. Payroll is encompasses everyemployee of a company who receives a

regular wages or other compensationdue toeach. Applying manual procedure on a

Payroll transaction involving the vast beatanswer in that problem would be computer

because computers can simulateenormous data and can process complex transaction

in a fast and efficient way.

It can generate numerous accounts and dataaccurately. A Computerized Payroll

System will not only provide accurate calculation andfast process of Payroll transaction

but it will secure data through security.

Other studies that used a different programming language like Aishwarya

Guptain (2013) AMITY University UTTAR Pradesh that develop a system entitled

withemployee payroll system According to the researcher Employee Payroll system is

an application thatenables users to create and store Employee Records. This

application alsoprovides a facility which enables an administrator or an employee to

generate aPay slip. This application is helpful to the organization as it maintains data

ofemployees related to that organization. Java is used to create this application asit is a

platform independent language and can be used on a standalone machineas well as on

a distributed network. Furthermore applications developed in javacan be extended to

Internet based applications. Thus java was chosen to do thefront end task to design this

application. That insisted the benefits of theapplication Easy calculations. Accuracy in

payroll calculation is necessary in everycompany. It requires efficiency to pay

employees the right amount of money theyh a ve e a r ne d, R e l i a b le b a c k up,

Keeping large amounts of data for payroll can bechallenging. This application stores

your data in the database of your syste because you can’t store piles of papers and

data manually,
 It can be easilyhandled by the person who has basic knowledge of

computer becauseit provides a user friendly environment, its hardware and software

configuration isnot very expensive.

CHAPTER III

METODOLOGY

In this study present the design of the study,particularly the research

methods and techniques to be used. How the subjects are chosen,how the sample size

is determined, the instrument to be used and their validation and the data analysis

scheme which include the application of statistical tools for treatment of data yeilded by

the study.

This study used descriptive method in determined in the level of awareness

and level of acceptance regarding the questioner given by the employee.

RESEARCH DESIGN

This study utilized descriptive-survey in order to achive the prupose of the

study-which describe the knowledge or acceptance of the JJ Rubber and Metal

fabrication’s employee.
 The researcher used their survey questionaire as their instrument.Based on

their survey conducted. Their was able to determine the details of this study. Graphs

and their figures were also used to provide clearer understanding of the data presented

as the answers to the problem of the study.

RESEARCH LOCALE

This study conducted at 9006 Purok 6Brgy.Palo Alto Calamba 4027

Laguna.

POPULATION OF THE STUDY OR SAMPLING DESIGN

Employee of JJ Rubber and Metal fabrication from the total of 15.

RESEARCH INSTRUMENT

The researcher do some interview and give questioner to the employee.In

interview the researcher asked some employee of JJ Rubber and Metal fabricarion

about the research/study.

DATA GATHERING PROCEDURE

The data of this research were collected using a survey questioner. The

survey was created using suitable question modified from the related research and

individual question formed by the researcher.The survey was comprised of 3 question,

which were related to the participant’s preception regarding their computerize payroll
system.In the questionaire, questions about it was us used to determine if the

respondent agreed or disagreed in the statement. After the researcher do the

questionairer,their destribute it from the JJ Rubber and Metal Fabrication’s employee.

The researcher assured condfidentally of their survey sheet since the identities are not

important. Participants were given time to respond and the researcher collect the survey

after answering the questionaire.The researcher interview certain number of employee

in population regarding in importance of computerize payroll system.

TREATMENT OF DATA

In getting the sample size, the group used the addition formula which is, n=,

stands for the count of the employee and ,e=, is for who agreed an d employee in the

computerize payroll system.

n=total employee

e=who agree on it

m=disagree

Solution:

N=15

M=2

FORMULA
E=n-m

E=(15)-(2)

E=13-count who agreed in a computerized payroll system.