QUEZON CITY UNIVERSITY

673 Quirino Highway Novaliches, Quezon City

PAYROLL SYSTEM

A Project Presented to the

Faculty of
College of Computer Science and Information Technology

In Partial Fulfillment of the Requirements for the Subject

IS104 Systems Analysis and Design

Presented by
SBIT – IT2B
Group 4
Mercada, Richard P.
Morota, John Patrick B.
Naquita, Andrew L.
Ontangco, jeremy Jon M.
Pabalate, Ranzcel Angelo L.
Pendica, Charian A.

January 2022

i
ACKNOWLEDGMENT

ii
DEDICATION

iii
 ABSTRACT

(This part contains summary of your study, every Chapter’s contents. Create this at the
end of your project development.)

iv
 TABLE OF CONTENTS
Page No.
Title

Title Page…….……………………………………………………………................... i

Acknowledgment………………………….…………………………………………... ii

List of Appendices…………………………………………………………………..... iii

CHAPTER I PROJECT BACKGROUND 1

Introduction

Background of the Project

Statement of Objectives

General Objective

Specific Objectives

Scope and Limitations/Delimitations of the Project

Scope

Limitations/Delimitations

Methodology

Significance of the Project

Definition of Terms

CHAPTER II REVIEW OF RELATED LITERATURE, STUDIES AND SYSTEMS

Foreign Literature, Studies and Systems

Local Literature, Studies and Systems

Synthesis of the Reviewed Literature, Studies and Systems

CHAPTER III COST-BENEFIT ANALYSIS

BIBLIOGRAPHY
v
 LIST OF APPENDICES

Appendix Title Page No.

A Gantt Chart

B Context Diagram

C Data Flow Diagram

D Entity – Relationship Diagram

E Data Dictionary

F Use-Case Diagram

G Program Flowchart

H Screenshots with Description

I Network Design

J Curriculum Vitae

vi
 LIST OF TABLES (IF ANY)

Number Title Page

vii
 LIST OF FIGURES (IF ANY)

Number Title Page

A Gantt Chart

B Context Diagram

C Data Flow Diagram

D Entity – Relationship Diagram

E Data Dictionary

F Network Design

G Screenshots with Description

H Curriculum Vitae

viii
 CHAPTER I

BACKGROUND OF THE PROJECT

Introduction

In globalization era, there’s many competitions to lead the business in the

company. All the competition needs a valid information system to be used by the

management to make a right decision that will decide the rights and increase the

company performance and become a leader from all the company that in the same type

of business.

The propose project is a Payroll System. It is a process of paying a company’s

employees, which includes tracking hours worked, calculating employees’ pay, and

distributing payment via direct deposit to bank accounts or by check. The project is

totally built at administrative end and thus only the administrator is guaranteed the

access and to improve transaction to employees.

Payroll be made up of the process by which a business pays its employees for

work performed during a specific period. A company must have 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. A specialized course in payroll system is

important for those who are entrusted with managing the intricate processing systems.

Background of the Project

ix
 Payroll is the sum of all financial documents that show how a firm or company

compensates its employees for work done over a period of time. A payroll system

includes everything that has to do with the electronic payment of employees and

submission of employment taxes. A payroll system can be manual or digital, and it can

be handled in-house or outsourced.

Calculating employee compensation, logging payroll transactions, and

determining and paying payroll taxes are all part of the payroll process. Without such a

system in place, the corporation would have difficulties calculating payments for

services or labor performed by personnel. Nowadays, a payroll system isn't only a must.

It is now a requirement for businesses. In the industrial workplace, computerization is a

control system that manages processes.

It lowers human errors and processing time, resulting in increased productivity

and high-quality product output. Computerization in the Information System (IS) is

concerned with the interconnection of various yet interdependent transactions. This can

lead to a system with well-integrated processes that can operate significantly more

quickly and accurately than a manual system.

Statement of Objectives

x
 General Objective

The main objective of the proponents is to compute accurately the salary of the

employees.

Specific Objectives

1. To design a system is intended to provide a user-friendly system that will

compute accurately the salary of the local government employees.

2. To design a system that can perform individually and convenient for the user.

3. To develop a system that will rapidly process computation.

4. To develop a system that has 2 user access.

5. To develop a system that can add and delete, update information of

employees.

Scope and Delimitations of the Project

Scope

This system is designed to improve or develop a computerized payroll system for

corporate payments. These include adding employee records, editing employee data,

deleting employee records, printing and storing employee pay slips, updating employee

information, weekly wages, down payments, daily wages, overtime, and total payments.

Login-logout process for amount, net wages, and deductions such as withholding tax

and SSS, and for security reasons. In addition, help files allow users to learn how to use

payroll software.

Limitations|Delimitations

1. Costly and Expensive.

xi
 2. Complicated to operate.

3. Data security, loss or theft

4. Cyber security and fraud

5. Information access, quality and control

Methodology

Methodology Material used in developing software: VB or Visual basic is a

Programming tool that is used to create or develop GUI (Graphic User Interface)

application. Unlike other programming language that is need to a lot of codes to build up

the interface of an application, The User can simply drag and drop the pre-design tools

into form windows of the application.

The VB has been highly optimized to support rapid application development. It is easy

to develop graphic user interfaces and connect them to handler modules, forms,

procedures, etc.

Significance of the Project

The proposed system will truly help the whole company to manage everything

faster than the usual. This study will help the employee resulting to a faster way of

computing payrolls. The department responsible for timekeeping will lighten their duties

as it will handle user-friendly transactions. Payroll system is also providing for the

accountants to improve the preparation of the payments in a timely manner, manage

employee services, hours, pay rates, etc.

xii
Aside from the company, we are also the benefactors of the system because it will help

us to enhance our ability to fully understand on how to create a computerized system

that might help use soon.

Definition of Terms

For a better understanding of this study, the following terms are defined in the context of

research.

Computer - It is an electronic device that processes a given problem producing the

output.

Information Technology - This refers to the devices or machines classified as high

technology which provides assistance, relief and a solution to one’s predicament

Browser - It is a computer program that display web documents and use to navigate

using internet

Accounts - It is a personal information of the user that can store their personal info and

more.

E-Money - This is an electronic money that can use to buy products online.

Database - The collection of data that are commonly defined and consistently organized

to fit the information needed.

Payroll - Is the sum of all financial records of salaries, wages, bonuses and deductions.

Record - A data structure; an item or collection of data.

System - Is a set of interacting or interdependent entities forming an integrated whole

xiii
 CHAPTER II

REVIEW OF RELATED LITERATURE, STUDIES AND SYSTEMS

Foreign Literature, Studies and Systems

According to the researcher of Nyanmaru computerized Payroll system (2013)

Nowadays all establishments are becoming modernized, they use modern technologies

to make their transactions fast, easy, and accurate in order to avoid waste of time and

for the sake of safety and security. It also helps humans to solve and understand

complex problems and analysis such as the computational needs of humans. Especially

to business establishments or corporations processing enormous data and complete

transaction. Payroll is an example of a complex transaction because it is a critical

business operation dealing with numerous accounts and producing plenty and

confidential files.

Payroll is encompassing every employee of a company who receives 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 complete transaction in a fast

and efficient way

Researcher Amrit Kadam (Aug 13, 2014) are include the study entitled college

Payroll system OF Taxation the purpose of this study is to aim of developing employee

Payroll management is to provide an easy way not only to automate all functionalities

involved managing leaves and Payroll for the employees of college, but also to provide

full functional reports to management of college with the details about usage of leave

facility even deduction of income tax related taxes can be done by this system. Payroll

xiv
system is the heart of any human resource system of an organization. The solution has

to take care of the calculation of salary as per rules of the college, income tax

calculation and various deductions to be done from the salary including statutory

deductions like Income tax and provident fund deductions. It has to generate pay-slip,

cheque summary and 2I reports. It is understood that we are tired of managing

thousands of odd papers, pay slips, payroll reports, salary details and so on. Imagine

That we have a payroll processing system which will generate our pays lips and payroll

reports within seconds. we can help others automated your payroll system by

developing a customized payroll application that suits your specific requirements

According to the Federal Personnel Payroll System is used by the United States

Department of Interior. According to the Department of the Interior's Interior Business

Center the Federal Personnel Payroll System (FPPS) is a modern, mainframe-based,

portable, integrated, on-line, and real-time personnel and payroll system. The system

provides personnel and payroll support to numerous agencies. The system is customer-

driven, creating and generating the full life cycle of personnel transactions, enabling

agencies to maintain records electronically. FPPS handles all current regulations

including specialized pay, garnishments, special appointment programs, and more.

FPPS was developed by the Interior Business Center (IBC) using state-of-the-art

database technology, fourth-generation language, structured development

methodology, and computer-aided software engineering tools for robust performance

and ease of maintenance. FPPS is a highly sophisticated and comprehensive database

management system providing an extensive array of human resources (HR) and payroll

automation support within its core, including requirements prescribed by client agencies,

xv
the IBC's centralized Payroll Operations Division (POD), and the Office of Personnel

Management (OPM). The FPPS application supports Requesting Office, Time and

Attendance (T&A input), Servicing Personnel Office, Security, Time &Attendance

Maintenance, and Pay Maintenance commands for Federal employees and Emergency

Workers (Casuals).

All data is defined in a single database which eliminates redundancy and multiple

update routines. The single database concept also provides for ease of maintenance

and ensures data integrity. Security is controlled by the customer and is sufficiently

flexible to support all business processes. The system is table-driven to facilitate real-

time data updates and maintenance. Many of these tables are on-line for customer use.

FPPS also offers all required electronic interfaces with the U.S.

According to Robert Elsen, director, Secretariat of the Belgian Integrated Police

“HP has provided us with an efficient and transparent solution that has been welcomed

by our staff and ensures that they are all paid the correct amount, on time.” When

several police organizations were amalgamated into one national force, the Belgian

government needed a new, centralized payroll system for its 48,000 police employees.

This large and complex solution was successfully implemented by HP Enterprise

Services. The results include more accurate accounts, improved management and

improved staff morale. It also allows for the smooth integration with other public sector

departments.

In 2001, the Belgian government called for a complete overhaul of the country’s policing

system, replacing the former Gendarmerie, Criminal Investigation Department and

xvi
Municipal Police with a unified force. These integrated police service employs 48,000

people and is made up of the Federal Police and 196 local divisions that operate

autonomously but share common services. Following the integration, payroll continued

to be run via outdated applications on inefficient hardware. These were unpopular with

the various local divisions who felt that there was not enough visibility of payroll data.

The government therefore decided that payroll for the entire force should be centrally

administered by the Secretariat of the Belgian Integrated Police (SSGPI), an

autonomous service reporting to the Ministry of the Interior.

According to Japan Management Consulting there are two main payroll taxes in

their country the Social Insurance and Labor Insurance. Social Insurance provides to

employees a Social Insurance card that allows them to visit any medical facilities and

pay only 30% of the total cost. It is government mandated universal coverage for

employees and Japanese employees are usually satisfied with it and do not require

additional health care benefits. Employee National tax liability is calculated by the

company and deducted monthly from the salary. Employee Residential tax liability (local

tax or state tax is calculated by the ward office of the residence of the employee).

Employee can ask company to have it deducted from salary. This is the common case.

Employees are usually paid on the 25th of the month in Japan but another can be fixed

freely by the company. Employees usually get paid their commutation costs from home

to the company. However, this is not an obligation.

Local Literature, Studies and Systems

xvii
 According to the researcher (Aguilera, Bronzas, and Marueses) 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 2ost 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) there searchers

(Maligaya, Opeña, James Jordan) viewed that Liceo de Calam Aims 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.

According to (Alvarez, Aldrine, Gecolea) Krizalen enterprises (2014) uses

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 a need

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

monitoring, payroll processes, and assistance for the manager's 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

xviii
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

In opinion of Mendrez (2007) made a similar study for Vision Designer Inc. It has

an identification machine aimed at verifying a person entering through the swiping of

identification cards. After entering their given code number, the identification cards are

swiped in the machine's card reader to trigger the verification. If access is granted, the

micro switch will then automatically unlock to allow entry. This will help a lot in

monitoring attendances accurately and more precise. A group of computer engineers in

Rebisco biscuits corporation proposed a thesis report for what is the same Innodata

corps is implementing a computerized daily time record as an alternative for Bundy

clocks. The means of getting inside the company premises is by swiping cards into a

machine that reads every record of each employee then monitors and displays the time

a particular employee log in and out.

In La Salle University (LSU), where there are more than 100 employees, a

payroll system that is efficient and accurate is simply needed to carry out smooth

operations on giving compensation to the backbone of the institution, the teachers.

Certainly, a convenient and less time-consuming system to operate than carrying out

manual calculations, could be beneficial not only to the accounting in-charge but to the

institution as a whole. Nevertheless, employees work varying amounts of units each

semester and if there is significant turnover to name a few, a payroll service that is time-

saving and cost-effective could be the best alternative to internal processing. In

consonance with the main thrust of the College of Computer Studies (CCS), which is to

xix
design and develop office productivity tools that can uplift and enhance the instructional

and managerial processes. The researchers plan to conduct a study on the design and

implementation of the payroll system of LSU .

According to the Cagayan de Oro City Hall Computerized Payroll System

According to sunstar.com the City Accounting Department of Cagayan De Oro City has

introduced an upgraded computerized payroll system for permanent employees in a bid

to improve its services and maximize resources. “This project, which was conceived two

years ago, basically aims to improve our services particularly in the processing of

payrolls for permanent employees”, City Accountant Wilma Polley-Rugay told payroll in-

charge of the different departments and offices at City Hall during a briefing and

orientation on the concept of the one-month payroll system held Friday last week at the

City Council session hall in Cagayan de Oro City. With the added features of the new

computerized payroll system, Rugay said the preparation, processing and payment of

payroll system to permanent employees would be hastened and fast-tracked.

Adopting of the one-month payroll system is also beneficial, not only to the City

Accounting Department, but also to the payroll-in-charge as it would save time, energy

and resources. “Employees who handle payroll preparation and processing can now

attend to other office needs and concerns as the new payroll system will lessen their

workload,” she added. Under the new payroll system, preparation of payroll, this reflects

the accrued, amount payable every 15th and 30th day of the month, done only once.

Unlike the time-consuming old payroll system, preparation and processing of payroll is

done twice a month covering the first half and second half of the month.

xx
Synthesis of the Reviewed Literature, Studies and Systems

(Synthesize ALL the Literature, Studies and Systems here at the end in
summarized form.)

The literature

xxi
 CHAPTER III

COST-BENEFIT ANALYSIS

(This part contains details about the existing system in the company including the
problems encountered.)

Include processes

xxii
 FEASIBILITY STUDY (These are just examples)

Technical Feasibility

Example:

The proposed system consists of 4 computer units and a barcode scanner. The
barcode scanner is for scanning the barcode sticker and will be deciphered to print a
readable item description. Each computer unit is connected to a Local Area Network
(LAN) and connected to a single database for retrieving/sending data from 1 computer
unit as a Server. The usage of barcode scanner is to record the stocks that has been
released in the warehouse of the company. The proposed system requires a network
hub for connecting the 4 computer units. The Windows 7 Professional will be used as
an operating system for the computer and MySQL will used as the database of the
system. These hardware and software will be used for five years to handle or to
maintain the inventory system with barcode scanner and the Local Area Network. The
Uninterrupted Power Supply (UPS) will not be provided though it is essential; the
company will decide for providing the equipment.

Operational Feasibility

The proposed inventory system with barcode scanner enables the company to
control the company’s asset tracking needs and fixed assets. Barcode Technologies
are known of their quality, proven reliability, ergonomic design, and ease of use. This
kind of inventory system monitors the products of the company to gain visibility and
control the inventory and stock levels. It also reduces time spent searching for
inventory, eliminate stock outs, and improve customer service. Inventory levels and
reorder points will now be easy to manage, track, and control. The (name of the
company) has an inventory system which is manually conducted. Innovation from
manual to computerized will greatly benefit the company.

Economic Feasibility

xxiii
Example:

The proponents can say that (the name of the company) is economically feasible
because for over 50 years of business, (the name of the company) became one of the
leading dental supply producer and manufacturer worldwide. The company is willing to
upgrade and modernize its current system. In fact, the company already provided a
budget for the said system. Installing the hardware and software needed for the
proposed system will be possible for the company.
Cost – Benefit Analysis (Should be placed in new page)

An Analysis and Design of (name of the company)

Cost - Benefit Analysis of the Proposed System
Example:
Personnel Monthly Salary
No. of
Rate / Monthly
Personnel Number Working Hrs. / Day Salary
Day Amount
Days
Inventory
3 20 8 hrs. 404.00 8, 080.00 24,240.00
Clerk
Admin 1 20 8 hrs. 626.10 12,522.00 12,522.00
Accounting
1 20 8 hrs. 626.10 12,522.00 12,522.00
Head
61,806.00

Personnel Annual Salary

Personnel Number Salary Monthly Annual
Amount Amount
Inventory Clerk 3 8,080.00 24,240.00 290,880.00
Admin (fill this out)
Accounting Head
61,806.00 591,408.00

xxiv
Hardware

Quantity Particular Price Total Price

Intel Core i3
3 25,000.00 75,000.00
(PC Set)
DLink DES 1008 8-
2 850.00 1,700.00
port (Network HUB)
1 Database Server 50,000.00 50,000.00
APC BACK UPS
5 BR500IC – AS 2,800.00 14,000.00
(UPS/AVR)
2 Barcode Scanner 18,500.00 37,000.00
3 Epson Printer 4,500.00 13,500.00
191,200.00

Software
Quantity Particular Price Total Price
Windows 7
4 6,800.00 27,200.00
Professional
4 MS Office 2010 8,000.00 32,000.00
1 Visual Basic.Net 13,000.00 13,000.00
72,200.00

Furniture and Fixture

Quantity Particular Price Total Price
5 Computer Chair 850.00 4,250.00
5 Computer Table 1,300.00 6,500.00
10,750.00

Stationeries and Supplies

Quantity Particular Price Total Price
5 reams Bondpaper 150.00 750.00

xxv
 24 Color ink 90.00 2,160.00
24 Black ink 50.00 1,200.00
4,110.00

Expenses
Particular Amount
Hardware 191,200.00
Software 72,200.00
Furniture and Fixture 10,750.00
Stationeries and Supplies 4,110.00
Total 278,260.00

Summary Operational Cost

Particular Cost Amount
Personnel 591,408.00
Expenses 303,260.00
Total 894,668.00

xxvi
 Cost – Benefit Analysis (Should be placed in new page)

An Analysis and Design of (name of the company)

Cost – Benefit Analysis of the Existing System
(This part of the cost-benefit analysis contains similar number of tables and
corresponding labels as the Cost Analysis for the Proposed System. Just place the
table for the Summary of Existing Cost at the last part.)

Personnel Monthly Salary

No. of
Monthly
Personnel Number Working Hrs./day Rate/day Salary
Amount
Days
MIS 1 20 8 hrs. 626.10 12,522.00 12,522.00
Warehous (fill out
e 8 20 8 hrs. and finish
Personnel the rest)
Accounting
1 20 8 hrs.
Head
89,684.00

xxvii
Do these tables: (Pls. follow the given format above)

Personnel Annual Salary

Hardware
Software
Furniture and Fixture
Stationeries and Supplies
Expenses
Summary Existing Cost

(As an alternative to the Cost-Benefit Analysis, you may have Development Cost)

xxviii
 BIBLIOGRAPHY
(Use APA Style 6th Edition, label them with Books, Dictionaries,
Online Sources, etc.)
Books

Journals

Online Sources

xxix
APPENDIX A (All APPENDICES must have separate pages.)

Gantt Chart

xxx
 APPENDIX B

Context Diagram

(and so on… complete the Appendices indicated in the Table of Contents)

xxxi
 APPENDIX E

Data Dictionary

Examples:

Table Name: Company

Data Name Data Aliases Data Type Length Used in

Company ID C_ID int 3 None

Company
C_Name varchar 30 None
Name

Table Name: Personnel

Data Name Data Aliases Data Type Length Used in

Employee ID Emp_ID int 3 SystemAdminControl

First Name Fname varchar 30 SystemAdminControl

(…and so on, PLS. SEE THE TABLE OF CONTENTS.)

xxxii
CURRICULUM VITAE (Center this on a page)

xxxiii
(Individual CV follows. Example of format given on the next page.)

JAMES L. DELA CRUZ Your photo here

Blk. 8 Lot 10 Pines Ville, North Fairview, Quezon City

0917 7654321

jamesdc@yahoo.com

______________________________________________________________________

PERSONAL INFORMATION

Date of Birth:

Place of Birth:

Citizenship:

Gender:

Civil Status:

Interest:

______________________________________________________________________

EDUCATIONAL BACKGROUND

Primary:

Secondary:

Tertiary:

Bachelor: Quezon City University (Information Technology)

______________________________________________________________________

xxxiv
PERSONAL QUALIFICATION

Note:

1. Kindly follow all the instructions. Delete unnecessary details especially

those enclosed in parenthesis and with red fonts.
2. Use Font Arial size 14 for your Title (Title Page), Arial 12 for the rest with
Double Spacing.
3. Paper size SHORT BONDPAPER (8.5 X 11”).
4. Include page numbers (except on chapter titles)
5. Photo must be in uniform or business attire.

xxxv