Payroll Management System

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Payroll Management System
Master of Business Administration (SRM Institute of Science and Technology)
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A Project Report on
“Payroll Management System”
SCHOOL OF SCIENCE AND TECHNOLOGY

Course Name: Project Work
Course Code: 3104
A Project Prepared by
Rafiqul Alam Khan
Supervision
Md. Jahirul Kader
Institute of Science & Technology

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Approval
The Project titled “Payroll Management System” is submitted by Rafiqul Alam
Khan, Roll no: 12-1-50-812-002 of Institute of Science & Technology under
Bangladesh Open University. The Project has been accepted as satisfactory for the
partial fulfillment of the requirements for the degree of “Diploma in Computer
Science & Application.” Moreover, approved for its style and contents.
Payroll Management System Page 2

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Acknowledgement
At first I would like to thank the most gracious, the merciful Almighty Allah for
providing us enough strength and patience that carried through the work and
enable me to complete this work. I would like to express my gratitude to all those
who gave me helping hand in completing this term paper. I want to thank my
Project Supervisor Md. Jahirul Kader for helping me whenever I needed it the
most. My friends have also supported me in my work. I want to thank them all for
their help, support, interest and valuable hints.
Abstract

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Payroll management system encompasses all the tasks involved in paying an

organization’s employees. It typically involves keeping track of hours worked
and ensuring that employees receive the appropriate amount of pay. It also
includes calculating taxes and social security, as well as ensuring that they are
properly withheld and processed. Depending on the company in question, a
full range of other deductions may be calculated, withheld, and processed as
part of payroll administration. Additionally, the processing of contractor
payments may fall under the umbrella of payroll administration.
The specific tasks involved in payroll administration tend to vary according to

the needs of each unique company or organization. For example, some
companies have workers that receive commissions in addition to salaries. In
these companies, including commissions in employee salaries is a part of
payroll administration. For some companies, it also involves assigning exempt
or non-exempt status to workers, adding bonuses into paychecks, calculating
overtime payments, and adhering to applicable employment laws.
Handling payroll-related problems are part of payroll administration as well.

If an employee is paid an incorrect amount or a direct deposit fails to go
through, both things are payroll administration issues. Likewise tax filing and
deduction errors are payroll administration matters as well.
Payroll administration can be very simple, involving the payment of just a

handful of employees, or very complicated, involving payroll for thousands of
employees and contractors. In some, very small companies, payroll may be

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handled by the owner of the company or an employee. However, other

companies may have many employees to pay and keep track of necessitating a
well planned, efficient payroll administration system.
Payroll is defined as a method of administrating employees’ salaries in the

organizations. The process consists of calculation of salaries and tax
deductions of the employees, administrating the retirement benefits and
disbursements of salaries to employees. It can also be called as an accounts
activity which undertakes the salary administration of employees in t h e
o r g a n i z a t i o n . Administrating the employees’ salaries is not an easy task,
the HR and accounts department work together to calculate and disburse the
salary to the employees. Thus, payroll management can be further subdivided
into two sub processes, i.e. Payroll accounting and payroll administration.
Payroll refers to the administration of employees' salaries, wages, bonuses, net
pay, and deductions. It consist of the employee ID, employee name, date of
joining, daily attendance record, basic salary, allowances, overtime pay, bonus,
commissions, incentives, pay for holidays, vacations and sickness, value of
meals and lodging etc. There are some deductions such as PF, taxes, loan
installments or advances taken by employee.
Table of Content
Chapter Contents Page no


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Introduction 8
Background 9
Rationale 11
Statement of the Project 12
Objectives 13
Theoretical Assumptions 13
01 Scope & Limitation 15
Information Technology Innovation 17
Significance 17
Conceptual Framework 19
02 Operational Definition of terms 20
System Design Method 24
Data gathering instruments 26
Statistical Tools 28
Analytical Tools 31
03 Process used in developing the Software 34
Analysis used for Project Evaluation 39
Survey 54
User testing 61
04
Conclusion 69
05 Recommendation 70
Appendix 71
Bibliography 115
A Context Diagram 71
B Data Flow Diagram 72
C System Flow Chart 73
D Hierarchical Input Output Process 74
E Visual Table of Contents (VTOC) 75
F Entity Relationship Diagram 83
G Economic Feasibility 84
H Existing System 96
I User Manual 97
Appendix

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CHAPTER 1
Introduction

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The Computer nowadays is a basic need for businesses or companies. It
helps a lot in such a way that it makes work more progressive and productive. It is
an important thing that a company or small business should have because it helps a
lot in many ways such as organizing, storing and manipulating data. Having
computer programs may help a company grow bigger and be competitive in the
flow of the business world. The companies nowadays uses computer literate and
very competitive in the business.
Background
While administrating the monthly payroll basic salary, HRA, conveyance, and
other special allowances such mobile, etc are considered. There are some
deductions.

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Figure 1: Components of Payroll
Allowances, incentives, bonuses and reimbursements are based on

organizational policies. Some organizations provided the allowances on a
fixed rate say 10% or 12% of the basic salary. Some organizations go for
performance based incentives.
Payroll Management Processes
Calculation of gross salaries and deductible amounts is a tedious task which

involves risk. Some of the organizations use the traditional manual method of
payroll processing and some go for the advanced payroll processing software.
An organization opts for any of the following payroll processing methods
available:
a) Manual System:- Manual payroll system is the traditional payroll system

which involves pen and ink, adding machine, spreadsheet, etc instead of
computers, software and other computerized aids. The process was very
popular when there were no computerized means for payroll processing.

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b) Accountant: Accountant is a professional having a degree or diploma in

finance or accountancy. He /she is responsible for all activities related to
payroll accounting. He/she has sound knowledge of accounting principle
and globally accepted standards. The process add cost and value to the
organization.
Figure 2: Payroll Processing
c) Pay roll: - Pay roll outsourcing involves a third party in the calculation of
salaries and deduction. It save time and cost for the organization. If there is
more number of employees, say more than 900-1000, in the organization,
payroll outsourcing must be very beneficial.
The data is provided to the consultants/outsourcing firms. The various

payroll functions undertaken by the outsourcing organizations are as
follows:
 Analysis of Payroll records, payroll taxes

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 Medical claim processing
 Employee Insurance & Provident fund processing
 Quality Audit procedures & planning
Rationale
The proposed system will run through computer for payroll record with an
integration of biometric fingerprint scanner for time keeping. It contains the
automation of time keeping for every employee to generate payroll transaction. It
can update employee information, individual and groups reports, file leave, set a
non-working or working Holiday, access control and also calculation of 13 th
month pay and tax refund yearly report.
Statement of the Project

1. Some common problems encountered by the accounting staff of some
organization in terms of using their manual system in processing payroll and time
keeping?

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2. Does a LAN-Based Timekeeping and Payroll system using Biometrics will
help the accounting staff in terms of the generating payroll transaction, easy way
timekeeping using biometrics, secure all payroll records, calculating 13 month
pay, tax refund and generate all payroll reports?
3. If a LAN-Based Timekeeping and Payroll system using Biometrics will be used
and will it be more efficient and effective than the current manual system?
4. What is the level of efficiency of the system when evaluated by the user
evaluation result of the existing, the prototype system and the proposed system in
terms of Correctness, Reliability, Efficiency, Testability and portability?
5. What is the level of efficiency in the system when evaluated by the system
testing result?
6. Is there a significant difference between effectiveness of the system when
evaluated by the user evaluation result of the present, the proposed system and the
prototype system in terms of Correctness, Reliability, Efficiency, testability and
Portability?
Objective
A. General Objective
This study aimed to help a company to have an efficient and effective way
of monitoring their employee’s time keeping and payroll system to give a higher
quality of service.
B. Specific Objectives

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Specifically, attain to:
B.1 Develop a system that will improve the company’s process in the Timekeeping
and Payroll;
B.2 Develop a system that will monitor employee’s data that is efficient to use;
B.3 Use biometrics tool (Fingerprint scanner) that will provide an easy log-in and
log-out of the employees and staff.
B.4 Secure the records of employees and to have more manageable files;
B.5 Calculate payroll transaction easily; and
B.6 Summarize all the Deducted Contribution of Employees.
Theoretical Assumption
 The proponents act fully responsibility to improve the Blanco Family
Academy operation in the Time Keeping and Payroll System to implement the
needs of the user of the system.
 The proponents established that if the system will crash, the proponents will
prepare a back-up system which it can be restore the system but before the
proponents restore the system, the user should have back-up all the files and data
in the system.
 The proposed system will secure the records of employees and have more
manageable files.
 The proposed system will provide a (Local Area Network) LAN-Based to
easily share information accurately and it also transfer data faster.

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(Figure 1 Network Diagram)
 The proposed system will monitor employees’ data which is efficient to use.
Figure 3: Network Diagram
Figure 1 shows the proposed network diagram, it refers the
configuration of cable, computer and other peripherals for LAN-Based
Timekeeping and Payroll using Biometrics of Family Blanco Academy. This is
the method used to pass information between the workstation.
Equipments
 Universal Twisted Pair Cable - This is the type of cable that will be use in our
Local Area Network.
 Router – The Local Area Network will use router that forwards data
packets between computer networks.
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Scope
The proposed Payroll System will cover many aspects of time keeping and
payroll process. This includes the capture of information based on the employee’s
work schedule, daily time worked and daily time rendered. The payroll process
encompasses all activities necessary to report employees’ time worked. The
system will convert the current company’s time keeping and payroll into Visual
Basic Program.
 The system will have a file management where it covers the records of
employee and system transaction log.
 The system also covers the Payroll Processing and Reporting which includes
the pay calculation of salary slip and time off tracking.
 The employee will use biometrics to time-in and time-out for recording of
timekeeping.
 The system will have a report consist of summary of time sheet, summary of
Payroll Computation, Summary of Tax Refund and 13 th Month Pay,
Withholding Tax, SSS, and Pag-IBIG Contributions.
Limitation

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The employee’s salary will not be sent through Automated teller machine
(ATMs) or cheques, for the reason that the company insisted that salaries must be
on a cash basis. No other currencies are computed in the system but Philippine
Peso only. The proposed system cannot be accessed online and it focuses only on
the employees’ Time Keeping and Payroll System of the Blanco Family Academy.
The necessary required remittance form given by the SSS, PAG-IBIG,
PHILHEALTH will be remitted manually. This proposed system is only applicable
and can only be used by the management of any company.
Information Technology Innovation
Biometrics
If any company used time card in their timekeeping, when the system
implemented, the employees will use biometrics (finger scanner) for their
timekeeping to have an easy way of timekeeping and calculating their time of
work.
Local Area Network

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Local Area Network in technology system is the connecting of two or more
computers to common peripheral resources to compile all the data of Timekeeping
and payroll system.
Significance
To the management
An organization will greatly benefit with the proponent’s study because
they don’t need to hire any programmers to do the work in their system. The
proponents will develop their system. So the proponents ask for the support of the
company. This will lead in lessening the expenses of the company which can be
used in their other expenses. They will also find it easier to do task with the system
like the biometrics wherein they can assure that their time keeping system is
secure.
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.

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Human Resources Personnel managing the time keeping will not be the
same again as they will experience relieve. It would be fast and easy for them to
handle transactions such as report making and 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, and flexible labor distribution for
projects and work orders can be maintained. Other benefits of the time and
attendance employees’ software include the elimination of time cards and
unauthorized overtimes
CHAPTER 2
This chapter includes a discussion of the related literature, theoretical
Framework and conceptual framework as components of a faculty evaluation.
Conceptual Framework

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In this research, the researchers to provide a better way of monitoring the
attendance of an organization, where the staff and the manager can handle a faster
and easy way of recording and monitoring their daily Attendances. Only the
Admin, HR and Accounting department has the authority to use the system that
can manipulate the records in the system. The system will provide a reliable and
efficient way of Timekeeping activity. The study aims to produce a result of Time
keeping and Payroll System that can cope up with the needs of the company.
Operational Definition of Terms
Barcode
This refers to acode consisting of a group of printed and variously
patterned bars and spaces and sometimes numerals that is designed to be scanned
and read into computer memory and that contains information (as identification)
about the object it labels.
Basic Pay

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This refers to monthly rate divided by the number of working days
multiplied by the number of days worked.
Biometrics
This refers to the measurement of physical characteristics such as
fingerprints and DNA, or retinal patterns for use in verifying the identity of
individuals.
Bundy Clock
This refers to a clock card machine or punch clock or time recorder is a
mechanical (or electronic) timepiece used to assist in tracking the hours an
employee of a company worked.
Daily Time Record
This refers to a record of how a person’s time has been spent. It is used to
calculate pay, asses the efficient use of time, or charge for work done.
Database
This refers to a organized collection of data for one or more purposes, it is
usually in digital form.
Days Worked

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This refers to the actual days worked by an employee, often well in excess
of those stated in the contract of employment and sometimes without the payment
of overtime.
Deduction
This refers to business expenses or losses which are legally permitted to be
subtracted from the gross revenue of a firm in computing its taxable income.
Employee
This refers to a person who is hired to provide services to a company on a
regular basis in exchange for compensation.
Gross Pay
This refers to total of an employee’s regular remuneration including
allowances, overtime pay, commissions and bonuses, etc. before any deductions
are made.
LAN (Local Area Network)
This refers to supplies networking capability to a group of computers in
close proximity to each other such as in an office building, school or home.

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Loan
This refers to funds transferred from one party to another as payment for
purchased goods or services.
Net Pay
This refers to the remaining amount of an employee’s gross pay, after
deductions, such as taxes and retirement contributions, are made.
Payroll
This refers to a 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.
Pay slip
This refers to a detailed breakdown on how much an employee is paid
during a Specific period.
Report
This refers to give an official account or statement of as a treasurer reports
the receipts and expenditures.
Router

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This refers to a router is a device that forwards data
packets between computer networks, creating an overlay internetwork.
Salary
This refers to wages received on a regular basis, usually weekly, bi-weekly
or monthly.
Spreadsheets
This refers to spreadsheet is a computer application with tools that increase
the user's productivity in capturing, analyzing, and sharing tabular data sets.
UTP or Unshielded Twisted Pair
This refers to type of cable used in telecommunications and computer
networks
CHAPTER 3
System Design Methods

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The Proponents used Descriptive method of researched; the
"Descriptive" method of research is where the person doing the research
presents it in a descriptive manner." The descriptive research designs enable
researchers to describe or present the picture of a phenomenon or phenomena
under investigation”. It is the opposite of another form of research
methodology called "Analytical".
1. The Descriptive Method
The proponents conduct a personal interview with our client. The
project team talked to the security personnel, HR, accountant for gathering of
data about the system specification, needed for creating our proposed system
that can help them for their security, timekeeping and payroll system in an
efficient manner.
1.1 Interview
During requirements gathering stage, the proponents conduct interview
with security personnel, HR, accountant of Blanco Family Academy, who
gave the resources about the flow of the current system and the process of
computing the salaries, monitoring and timekeeping of the employees.
1.2 Observation

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The proponents had some inspection regarding the current system to
gather more ideas on how to design our proposed system. From this
observation, we noted some problems being encountered.
1.3 Internet Research
The proponents also conduct an internet research to gather more data
and topics that are related to our study.
1.4 Library Research
The proponents also used library materials like thesis documentation
and books that are related to our study in gathering significant information
and validation of our study.
1.5 Survey and Testing
The proponents conduct a survey and user testing to derive
interpretations and inferences. The survey is presented in accordance with the
statement of the specific problem. Proponents also conduct Usability testing, it is a
technique used in user-centered interaction design to evaluate a Payroll system
using biometric for the company.

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1.6 System Testing
Proponents also conduct System Testing of software the testing
conducted on a complete, was based on the system's compliance with its
specified requirements .
Data Gathering Instruments
1. Company Observation.
The proponents had some inspection regarding the current system to
gather more ideas on how to design our proposed system. From this
observation, we noted some problems being encountered.
1.1 Naturalistic observation
Naturalistic observation is a research tool in which a subject is
observed in its natural habitat without any manipulation by the
observer.
The Time Keeping and Payroll System of the Blanco Family
Academy are sometimes imprecise to use. Also, the Employees of the
company are using Bundy Clock to indicate in their Date Time Card
their time of work in and out every day and the Accountant
administrator based the wages of each employee in that time Card. It is
hustle to use and long term creating the payroll slip, and the time

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keeping which the Human Resources need to encode all the attendance
of employee using spreadsheets. Therefore the School’s Time Keeping
and Payroll system need improvement
1.2 Participant observation
Participant observation is a structured type of research strategy.
It is a widely used methodology in many disciplines,
particularly, cultural anthropology , but also sociology , communication
studies , and social psychology . Its aim is to gain a close and intimate
familiarity with a given group of individuals (such as a religious,
occupational, or sub cultural group, or a particular community) and
their practices through an intensive involvement with people in their
natural environment, usually over an extended period of time.
The Proponents Indicate the Specific Problem of the Time
Keeping and Payroll for Blanco Family Academy.
1.2.1. The information on time consumed by employees can easily be
change.
1.2.2. The data are harder to monitor and more time consuming on the part
of Human Resources, Accountant and Administrator when it comes to
payroll computation.
1.2.3. The Date Time Card has a huge tendency to be lost by employees.

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1.2.4. It’s so hard to monitor the employees attending by security personnel.
Statistical Tools
These tools were used to compute the data gathered in relation to the
proponents study.
1. Percentage Distribution
Percentage and frequency of distribution were used to describe the profile
of the respondents of the study in terms of age, gender and profession using time
keeping and payroll system, and if they were the users, administrator or field
expertise on this system; this is solved by the formula: (Probability Statistics for
scientist and Engineer, 7th edition, Walpale Myer)
Percentage (%) = (f / n) * 100
Where:
P- Percentage distribution
f- Scores in the distribution
n- Number of respondents
2. Weighted Mean.
This was used for most of the item in the questionnaire checklist, weighted
is utilized. The following scales and its equivalency used as follows:
Survey

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Criteria Scale Value Rating Interpretation

Male Yes 1 Agree
Female No 2 Disagree
Table 1: Survey Criteria
User Evalua琀椀on

Correctness E 5 Excellent
Reliability G 4 Good
Efficiency A 3 Average
Testability P 2 Poor
Portability NI 1 Needs Improvement
Table 2: User Evaluation Criteria
System Tes琀椀ng

Block and white
Testing Full Compliance 3 Full Compliance
Unit Testing Partial Compliance 2 Partial Compliance
Security Testing Non-Compliance 1 Non-Compliance
Table 3: System Testing Criteria
It measures the average numerical value of a set of scores. It is calculated
by adding all the scores and dividing the sum of its frequency. The formulas are as
follows:

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WM = ∑X
Where: X = Score
N = Number of cases or respondents
Analytical Tools
The analytical tools in conducting the proposed study were the Context
Diagram, Data Flow Diagram, System flowchart, HIPO (Hierarchical Input-
Process-Output) and VTOC (Visual Table of Contents).
Context Diagram. It is a data flow diagram, with only one massive central
process that subsumes everything inside the scope of the system. It shows how the
system will receive and send data flows to the external entities involved. The
context diagram shows how the main scope of the system wherein the employee
will login and the system will read the information entered by the employee. The

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human resources manage the employee’s details including the reports coming from
the accountant who computes payroll transaction that will reflect on employee’s
payslip. (See Appendix B for the Context diagram).
Data Flow Diagram. It is a graphical representation of the "flow" of data
through an information system, modeling its process aspects. Often they are a
preliminary step used to create an overview of the system which can later be
elaborated. It also shows what kinds of data will be input to and output from the
system, where the data will come from and go to, and where the data will be
stored.
Data flow diagram show the step by step procedure that is more
complicated on how the system will works for example, an employee registers and
it will validate the fingerprint automatically, the input information going through
the database that computes the time record, gross pay and net pay that generates
the deduction one by one. It is much easier compared to the manual procedure
which is time consuming. (See Appendix C for the Data Flow diagram)
System Flowchart. It is the graphical representation of the flow of data in
the system, and represents the work process of the system. Information system
flowchart show how data flows from source documents through the computer to
final distribution to users. Program flowcharts show the sequence of instructions in
a single program or subroutine.

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It shows the flow of the payroll system were the human resources is in
charge in adding new employee information including editing, deleting and set of
salary for every employee. The user allows all the employee to register their finger
print for their time log, the system will have a transaction were it will show all the
computation of payroll and generate the reports for the employee unlike the
existing system of Blanco family academy it is more sophisticated when it comes
into computation and filling the records of each employee. It will be efficient for
the user to use if the system is more accurate and fast when it comes into preparing
the payroll of employee. (See Appendix D for the System Flowchart)
HIPO (Hierarchy plus Input-Process-Output) technique is a tool for
planning and/or documenting a computer program. A HIPO model consists of a
hierarchy chart that graphically represents the program’s control structure and a set
of IPO (Input-Process-Output) charts that describe the inputs to, the outputs from,
and the functions (or processes) performed by each module on the hierarchy chart.
Hierarchical Input process output is similar to vtoc where it shows the
module needed by the system. The process on how the data has been entered and
how it’s being process will show its output or results. (See Appendix E for the
Hierarchical input process output ).
VTOC or Visual Table of Contents. It is an analytical tool for planning
and/or documenting a computer program. Each function represented by a

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rectangular box can be described in further detail in an IPO (or input-process-
output) diagram. It also show the scope of the system were the module are
connected.
VTOC shows every module of the system, their module contains the form
where it reflects on how the modules are connected and every form represents the
detailed information of every module at it is arranged through tables.(See
Appendix F for the Visual table of contents)
ERD or Entity-Relation Diagram is a specialized graphic that illustrates
the relationships between entities in a database. ER diagrams often use symbols to
represent three different types of information. Boxes are commonly used to
represent entities. Diamonds are normally used to represent relationships and ovals
are used to represent attributes. ERD is used to see the relationship of different
entity in the system.
The entity relationship diagram shows the relations of entities or the user of
the system on how he/she does the process, you will see the flow where the user is
connected to what he/she does. Example is the input of registrations in filling the
records of every employee to the computation of salary deduction and to
distribution of employee’s pay slip. (See Appendix G for the Entity Relation
Diagram)

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Processes Used in Developing the Software
1. Agile Unified Process
AUP or Agile Unified Process is a simplified version of the Rational Unified
Process (RUP). It describes a simple, easy to understand approach to developing
business application software using agile techniques and concepts yet still
remaining true to the RUP. I've tried to keep the Agile UP as simple as possible,
both in its approach and in its description. The descriptions are simple and to the
point, with links to details (on the web) if you want them. The approach applies
agile techniques include test driven development (TDD), Agile Model Driven
Development (AMDD), agile change management, and database refactoring to
improve your productivity.

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Figure 4: The Agile Unified Process (AUP) lifecycle.
Figure shows depict the lifecycle of the AUP. The first thing that you'll
notice is that the disciplines have changed. First, the Model discipline
encompasses the RUP's Business Modeling, Requirements, and Analysis & Design
disciplines. Model is an important part of the AUP, as you can see, but it doesn't
dominate the process you want to stay agile by creating models and documents
which are just barely good enough. Second, the Configuration and Change
Management discipline is now the Configuration Management discipline. In agile
development your change management activities are typically part of your
requirements management efforts, which is part of the Model discipline.
Serial in the Large
The serial nature of Agile UP is captured in its four phases
1. Inception. The goal is to identify the initial scope of the project, a potential
architecture for your system, and to obtain initial project funding and stakeholder
acceptance.
2. Elaboration. The goal is to prove the architecture of the system.
3. Construction. The goal is to build working software on a regular,
incremental basis which meets the highest-priority needs of your project
stakeholders.

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4. Transition. The goal is to validate and deploy your system into your
production environment.
Iterative in the Small
Disciplines are performed in an iterative manner, defining the activities
which development team members perform to build, validate, and deliver working
software which meets the needs of their stakeholders. The disciplines are:
 Model: The goal of this discipline is to understand the business of the
organization, the problem domain being addressed by the project, and to identify a
viable solution to address the problem domain.
 Implementation: The goal of this discipline is to transform your model(s)
into executable code and to perform a basic level of testing, in particular unit
testing.
 Test: The goal of this discipline is to perform an objective evaluation to
ensure quality. This includes finding defects, validating that the system works as
designed, and verifying that the requirements are met.
 Deployment: The goal of this discipline is to plan for the delivery of the
system and to execute the plan to make the system available to end users.

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 Configuration Management: The goal of this discipline is to manage
access to your project artifacts. This includes not only tracking artifact versions
over time but also controlling and managing changes to them.
 Project Management: The goal of this discipline is to direct the activities
that takes place on the project. This includes managing risks, directing people
(assigning tasks, tracking progress), and coordinating with people and systems
outside the scope of the project to be sure that it is delivered on time and within
budget.
 Environment: The goal of this discipline is to support the rest of the effort
by ensuring that the proper process, guidance (standards and guidelines), and tools
(hardware, software) are available for the team as needed.
Agile Processing in the system development
Agile process in Payroll Systems team of payroll development
professionals combine decades of industry experience to build an application and
business model that is an efficient and precise process for operating your business.
Reducing your risk and servicing your clients are at the heart of the agile mission
Agile Payroll Systems provides comprehensive service bureau software
and services for those businesses dedicated to an integrated process for payroll and
payroll tax processing.

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1. Integrated Payroll and Payroll Tax Processing Application;
2. Software as a Service Models; and
3. Hosted Solutions
This LAN-Based Time keeping and payroll using Biometrics for Blanco
Family Academy is using the agile software development process that puts both
clients and testing, front and center in the development process. Our system design
and development are client and test driven to ensure the resulting applications are
flexible, meet our clients' requirements and are of the highest quality.
Analysis Used for Project Evaluation
The Feasibility Study is a critical document which defines the initial system
concepts, objectives, requirements, and alternatives. The study also forms the
framework for the system development project and establishes a baseline for
further studies.
1. Technical Feasibility
Blanco Family Academy has agreed to implement this proposed system if it
will succeed; they provide adequate hardware and software for the completion of
this project.

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1.1. Hardware Requirements
The hardware minimum recommended requirements and maximum recommended
requirements are listed below:
Minimum Maximum
Recommended
Hardware Recommended
Requirements
Requirements
Internal Memory 2.00 GB 3.00 GB or Higher
(RAM)
Hard Disk Capacity 60.00GB 80.00GB or Higher
(CPU)
Processor Intel Pentium Pentium (R) Dual Core
1.60GHZ 2.20 GHZ or Higher
Monitor 17” Colored 32bit 18 ” Colored or Higher
32bit
Video Card 128MB AGP 256 MB AGP or Higher
Biometrics Digital Persona Digital Persona uRu
uRu Latest Version
Table 1: Hardware Requirements
1.2. Software Requirements
The so昀琀ware minimum recommended requirements and maximum recommended
requirements are listed below:
Software Minimum Maximum
Recommended Recommended
Requirements Requirements

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System type Microsoft Win7 or XP Microsoft Win7 64bit
32bit Operating Operating System
System
Database MS Access 20073 MS Access 2007
Programming Microsoft Visual Microsoft Visual
Language Studio 2008 Studio 2010

Table 2: Software Requirements
2. Operational Feasibility
This feasibility study measures how well a proposed system solves the
problems, and takes advantage of the opportunities identified during scope
definition and how it can organization adopt identified in the requirements
analysis phase of system development.
2.1 Implementing a payroll system
According to Steven Bragg on his book entitled “Accounting for Payroll”
he stated that the Employers are responsible for paying their workers correctly and
on time. To simplify the payroll process, the employer needs a payroll system. A
payroll system streamlines the payroll aspect of the business. Without one, it is
difficult to track and pay employees' time and to adhere to the changing payroll
and tax laws set by the government. When implementing a payroll system, the
employer must perform several steps.

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2.1.1. Determine the type of payroll system you want to establish.
The payroll system you choose should be based on the size of your business
and how much payroll responsibility you would like to maintain.
2.1.2 Purchase payroll software and hire a payroll staff, Depending on the size of
your company.
A computerized payroll system saves on time and gives you access to an
onsite payroll staff.
2.1.3. Establish a pay date.
Report pay frequencies are up to you; however, weekly and biweekly are
most common for hourly workers, and biweekly and semi-monthly are most
common for salaried workers.
2.1.4. Decide on a time-keeping method, such as a time clock.
According to the Department of Labor, an employer can use whichever
time-keeping strategy he chooses as long as it correct and complete.
2.1.5. Train the payroll staff on the payroll system, if necessary.
As Ultimate Software, consider hiring specialists to train the payroll staff.
Have the payroll department do a mock payroll before running the first payroll. A

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test run will pinpoint any system glitches. Address issues before the time for doing
the actual payroll arrives.
2.1.6. Ensure your payroll department and your finance department is working
together, if applicable.
Some payroll personnel are responsible for wage reporting and tax matters.
However, some companies have a finance department that handles tax issues and
payroll accounting. If so, ensure the two departments are properly streamlined.
2.2 Proposed System Component
The in LAN-Based Payroll System Using Biometrics for Blanco Family
Academy can be completely parametaized to suit corporate salary / wages in entire
employees of a Company and is an ideal payroll management solution for this
company.
The following are the components provided in LAN-Based Payroll System.
2.2.1. Employee Management
Once an employee management is selected, a detailed employee profile is
updated which contains complete details. This information would then be
used for creating payroll. Create, update and delete employee accounts
using this section.
2.2.2. Finger print Scanner

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The Finger print Scanner is use to register the employees finger print to
allow them to scan their finger for their daily time record.
2.2.3. Payroll Transaction
Payroll Transaction will generate monthly payroll employee, approve
overtime and print payroll slip.
2.2.4. Loan
This will be to acquire loan by selecting the loan type and amortization
date. In this section it can also cash advance.
2.2.5. Leave
This will be the employee who wants to request vacation or Sick leave.
2.2.6. Holiday
This would enable to set the Holidays (National Holiday or Non- working
Holiday.
2.2.7. Reports
This section would enable you to view and print the payroll, Witholding
Tax, SSS, PhilHealth, HDMF, 13th month, tax refund reports of all the
employees, individually or groups.
2.2.8. Control Access
It gives you the ability to access user to a specific section.

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2.3 PAYROLL POLICY
The purpose of this Payroll Policy is to ensure that Blanco Family Academy
employees are paid correctly and timely. Accounting Clerks/Finance Officers must
work as a team to establish a good relationship with our employees to provide
assistance with payroll inquiries and produce accurate pay checks. Accounting
Clerks/Finance Officers must be familiar with the provisions of the various
collective bargaining agreements and need to keep informed of all changes.
Payroll entries must be done in accordance with generally accepted accounting
principles.
INTERNAL POLICY PROCEDURES
2.3.1. Employee Responsibility
Time In / Time out Procedure. Employees must scan their finger
print to biometrics finger print scanner before they go in and out of
work.
2.3.2 Finance Responsibility

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2.3.2.1. Accounting Clerk/Finance Officer
2.3.2.1.1. The Accounting Clerk/Finance Officer is responsible for
generate payroll.
2.3.2.1.2 The Accounting Clerk/Finance Officer must then compute
the appropriate hours and date under the appropriate pay type code
in the payroll system so as to track the actual time worked/used for
each employee.
2.3.2.1.3 Once all payroll generate, the Accounting Clerk/Finance
Officer must run a GrossPay /Deduction Proof report.
2.3.2.1.4 Once the Earnings/Deduction Proof has been reviewed and
approved, the Accounting Clerk/Finance Officer can run the payroll
checks and the corresponding vendor payroll checks.
2.3.3. Printing and Distribution of Payroll Checks & Transfers
Once the check run is completed and all vendor processes are
completed, the payroll checks are given to the Treasurer for distribution.
The Treasurer will receive a report from the Accounting Clerk on the total
amount to transfer, by fund, into the Payroll checking account to cover the
checks issued.
2.3.4. Records
All records shall be kept in the Finance Section in compliance with
the retention schedule. Destruction of any financial record will be done in

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compliance with the procedures set forth in the Blanco Family Academy
Records Managements Manual Payroll.
2.3.5. SL/VL of Absence Procedures
2.3.5.1.1 Sick leaves are filled by the employee 7 days before the
date of leave and with the approval of their heads.
2.3.5.1.2 The Accounting Clerk/Finance Officer must then collate
the leave form for Earnings/Deduction as of 2.3.2.1.3 payroll policy.
2.3.5.1.3 Every employee has number of SL/VL per year based on
the approval of their heads when their hired.
2.3.6. Compensation and Benefits
2.3.6.1. 13th Month Pay
The company give the 13 month pay for compensation and
benefits to the entire employee. The 70% of the total basic income
given every 2nd payroll of December and the other 30% of the
total basic income will be given on the 2nd payroll of March the
other year.
2.3.6.2. Holidays
Pursuant to the provisions of the Labor Code, as amended in
relation to the observance of declared holidays and in response to the
queries received every time a Presidential Proclamation or a law is

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enacted by Congress which declares certain days either as a regular
holiday, a special day or a special working holiday, the following
guidelines shall be observed by all employers in the private sector
2.3.8. Computation
2.3.8.1. Formulation of computing lates and overtime
 Lates
Monthly Salary 480min of 1day - Minutes of Lates
20 days
 Overtime
Monthly Salary 480min of 1day * Minutes of Overtime
20days
2.3.8.2. Formulation computing 13month Pay Step
1. Monthly Salary / 12 = 13month pay Monthly
Step 2. 13month Pay Monthly * Months of work = 13month
pay yearly
Step 3. 13month pay yearly * .70 =13month pay given by
December

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Step 4. 13month pay yearly * .30 =13month pay given by March
2.3.8.3. Formulation computing Tax Refund
Tax Refund = Yearly Tax Computation - Yearly Tax Contribution
2.3.9. Cash Advance
Cash advance will be limited to 1thousan a month only.
External Policy
2.3.10.1. Contribution and loan Remittances
Remittance will only be done after the accomplishing the
necessary required form given by the SSS, PAG-IBIG,
PHILHEALTH and other remittance offices.
2.2.10.2. Bank Transaction
The Treasurer will receive a report from the Accounting Clerk
on the total amount to transfer, by fund, into the Payroll checking
account to cover the checks issued and the bank will responsible to
divide the deposited check to distribute to the list account on the
report given by the accountant.
2.4. Disaster Recovery Plan

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Disaster recovery is the process, policies and procedures related to
preparing for recovery or continuation of technology infrastructure critical to an
organization after a natural or human-induced disaster. Disaster recovery is a
subset of business continuity. While business continuity involves planning for
keeping all aspects of a business functioning in the midst of disruptive events,
disaster recovery focuses on the IT or technology systems that support business
functions.
2.4.1. Plan A:
Main database will be located on a area that is water proof, fire proof to
have maximum security for the system and database that can only be access solely
by an administrator this is to prevent any forms of loss, leakage, corruption and
tampering of the data’s due to other uncontrollable and unforeseen circumstances.
2.4.2. Plan B:
System
The LAN- Based Time Keeping and Payroll using Biometrics for Blanco
Family Academy system will be uploaded to www.mediafire.com, a hosting web
site where you can upload unlimited storage up to of 200 MB per file (4GB for Pro
users and 10GB for Business users) MediaFire does not enforce waiting times for
downloads, limit simultaneous downloading or set bandwidth limits. The admin of
the system will solely assign this for the backup.

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Database
The Database of this system is uploaded also to MediaFire every end of the
day to back-up the record file of this system. The admin of this system assign to
update back-up.
2.5. Data Manipulating Language
The Proponents use Microsoft Visual Basic 2008 Express edition the
system can be update with the latest Microsoft Visual Basic programming
language by the programmer when it’s necessary.
3. Economic Feasibility
This is where the feasibility could be established by conducting a Market
Analysis or Cost Benefit Analysis. The researcher could choose the appropriate
tool. If the proposed software is customized for a particular company and there
will a basis for the computation of the operating cost, benefits, Return on
Investment (ROI), Payback Period. The researcher should present under this
subsection, the formula he/she will use in establishing the economic feasibility of
his/her studies.
3.1 Operating costs:

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Operating costs stated the annual of personnel expense, supplies and
equipment cost required for the existing and proposed system, the use of this is to
compare both of them to analyze which save more. The total annual cost for
existing is Php.387,784.20 and in the total annual cost for proposed is
Php.196,703.95 (See Appendix H for Economic Feasibility Study)
3.2 Development costs:
Development cost is incurred during the development of the system are one
time investment, its Include the Adequate Software, Hardware requirements, labor
cost, supplies cost, electric consumption, food and transportation cost. And total
development cost is Php.22,956.57 (See Appendix H. Economic Feasibility Study)
3.3 Cost and Benefits Analysis
Cost benefit analysis (CBA) it is important to identify cost and benefit
factors. It’s a technique designed to determine the feasibility of a project or plan by
quantifying its cost and benefits. Through this analysis you will be able to
compute the total cost saving, payback period and net saving by use of this
formulation.(See Appendix H. Economic Feasibility Study)
Annual Cost = Existing Cost – Proposed Cost

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Payback Period = Annual Cost / Present Value
Net Saving = End Cumulative Present Value –
Total Development Cost
3.4 Return of Investment (ROI)
A performance measure used to evaluate the efficiency of an investment or
to compare the efficiency of a number of different investments. To calculate ROI,
the benefit (return) of an investment is divided by the cost of the investment; the
result is expressed as a percentage or a ratio.
The return on investment formula:
Return of Investment (ROI) (5 years) = ((End Cumulative Present Value –
Total Development Cost / End Cumulative Present Value) * 100
The "end cumulative present value" formula refers to the
proceeds obtained from selling the investment of interest. Return on investment is
a very popular metric because of its versatility and simplicity. That is, if
an investment does not have a positive ROI, or if there are other opportunities with
a higher ROI, then the investment should not be under taken. (See Appendix H.
Economic Feasibility Study)

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CHAPTER 4
This chapter presents the data gathered through the research instrument.
These data are analyzed and statistically treated in order to derive interpretations
and inferences. The data are presented in accordance with the statement of the
specific problem.
Payroll Management System Survey Page 53

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The Employees of an organization respond in terms of gender and age to
answer the survey form to express the situation in their time keeping and payroll.
Table 3
Distribu琀椀on of Respondents in Terms of Gender
Gender Employees % Rank

Male 24 45% 2
Female 36 55% 1
Total 60 100%
In Table shows the distribution of Blanco Family Academy employees
respondents in terms of gender. It can be seen from this figure that 55% of the
respondents are female with a frequency of 11. On the other hand, 45% of the

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respondents are male with a frequency of 9. It appears therefore that there are
more female respondents than the male respondents.
Table 4
Distribu琀椀on of Respondents in Terms of Age
Age Employees % Rank

20-30 36 60% 1
31 and Above 24 40% 2
Total 60 100%
Table shows the frequency of the respondents’ profile in terms of age. The
figure shows that majority is 60% of the respondents are aged 20-30 years. Next
age reveals with a percentage of 40% were respondents whose ages were 31 and
above years old.
Question no. 1: Are you satisfied in your current Time keeping system using Bundy
clock?
Table 5
Distribution of the Respondents in Terms of
Sa琀椀sfac琀椀on of using Bundy clock in their 琀椀me keeping
Male Female

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Yes 18 24 60%
No 6 12 40%
Total 24 36 60 100%
Table shows the distribution of the respondents’ in terms of satisfaction of
Employees in using Bundy clock in their time keeping. It can be seen from the
data that 60% of the employees’ respondents says yes, that they satisfied of using
Bundy clock in their time keeping, on the other hand 40% says no, that they are
not satisfied of using Bundy clock in their time keeping.
Question no. 2: Do you want to change your current time keeping and payroll
system in computer time keeping and payroll system using biometrics?
Table 6
Distribu琀椀on of the Respondents in Terms of Upgrading in Computerize 琀椀me keeping and
Payroll
Male Female
Yes 18 30 60%
No 4 6 40%
Total 24 36 60 100%
Table shows the distribution of the respondents’ in terms of Upgrading in
Computerize time keeping and Payroll. It can be seen from the data that 80% of

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the employees’ respondents says yes, they want to upgrade their current time
keeping and payroll system into computerize time keeping and Payroll, on the
other hand 20% says no, they don’t want to upgrade their current time keeping and
payroll system into computerize time keeping and Payroll.
Question no. 3: Do you think using biometrics is more accurate than using usual
time card?
Table 7
Distribu琀椀on of the Respondents in Terms of biometrics is more accurate than using the
usual 琀椀me card.
Male Female
Yes 23 34 60%
No 1 2 40%
Total 24 36 60 100%
Table shows the distribution of the respondents’ in terms of Biometrics is
more accurate than using usual time card. It can be seen from the data that 95% of
the employees’ respondents says yes, Biometrics is more accurate than using usual
time card, on the other hand 5% says no, using usual time card is more accurate
than Biometrics.
Project Statement 4: Do you agree that implementing the proposed system to your
company would lessen the fraud committed by some of the employees?


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Table 8
Distribu琀椀on of the Respondents in Terms of proposed system would lessen the fraud
commi琀琀ed by some of the employees.
Male Female
Yes 24 35 60%
No 0 1 40%
Total 24 36 60 100%
Table shows the distribution of the respondents’ in terms of proposed
system would lessen the fraud committed by some of the employees. It can be
seen from the data that 95% of the employees’ respondents says yes, proposed
system would lessen the fraud committed by some of the employees, on the other
hand 5% says no, proposed system would not lessen the fraud committed by some
of the employees.
Project Statement 5: Does the proposed system will optimized the process of the
company in computing wages and time keeping?
Table 9
Distribu琀椀on of the Respondents in Terms of proposed system will op琀椀mized the process
in compu琀椀ng wages and 琀椀me keeping.

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Male Female
Yes 24 36 60%
No 0 0 40%
Total 24 36 60 100%
Table shows the distribution of the respondents’ in terms of proposed
system will optimize the process of the company in computing wages and time
keeping. It can be seen from the data that 100% of all employees’ respondents says
yes, proposed system will optimized the process of the company in computing
wages and time keeping.
User Testing
Level of efficiency of the system when evaluated by the User
Evaluation result of the existing, the prototype system and the proposed system in
terms of: Correctness, Reliability, Efficiency, Testability and Portability.
Table 10
Results of Software Evaluation According to Respondent’s Category of
Existing System

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Criteria Technic Mea NonTechni Mea Tota Interpretati Ran
al n cal n l on k
Mea
n
Correctness 5 2.20 5 2.80 2.60 A 2
Reliability 5 2.20 5 3.00 2.70 A 1
Efficiency 5 2.40 5 2.80 2.50 A 4
Testability 5 2.20 5 2.60 2.30 P 5
Portability 5 2.80 5 2.40 2.60 A 2
Overall 2.54
Mean
Overall A
Interpretati
on:
Legend: E – Excellent P - Poor
G – Good NI – Needs Improvement
A – Average
The table illustrates the user evaluation results according to the
respondents’ category; the computed weighted mean for Correctness corresponds
to a 2.60 average which is interpreted as Average. On the other hand the computed
weighted mean for Reliability category is 2.70 which describe the analysis as

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Average. A 2.50 weighted mean is seen on the Efficiency category that equates to
the interpretation of Average, 2.30 weighted mean is shown on the Testability
describe as Poor category and 2.60 for Portability which equates to Average. The
total computed weighted mean for the user evaluation result is 2.54 which
describes as the overall computed mean as Average. From the tabulated result, the
level of efficiency of the existing system evaluated is Average.
Table 11
Results of So昀琀ware Evalua琀椀on According to Respondent’s Category of Prototype System
Criteria Technic Mea NonTechni Mea Tota Interpretati Ran

al n cal n l on k
Mea
n
Correctness 5 3.00 5 3.40 3.10 A 4
Reliability 5 2.60 5 3.80 3.30 A 2
Efficiency 5 3.20 5 3.40 3.30 A 2
Testability 5 3.00 5 3.60 3.40 G 1
Portability 5 3.20 5 3.40 3.20 A 3
Overall 3.26
Mean
Overall A
Interpretati

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on:

A – Average
The table illustrates the user evaluation results of the prototype system
according to the respondents’ category; the computed weighted mean for
Correctness corresponds to a 3.10 average which is interpreted as Average. On the
other hand the computed weighted mean for Reliability category is 3.30 which
also describe the analysis as Average.
A 3.30 weighted mean is seen on the Efficiency category that equates to
the interpretation of Average, 3.40 weighted mean is shown on the Testability
category and 3.20 for Portability which equates to Average. The total computed
weighted mean for the user evaluation result is 3.26 which describes as the overall
computed mean as Average. From the tabulated result, the level of effectiveness of
the prototype system evaluated is Average.

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Table 12
Results of So昀琀ware Evalua琀椀on According to Respondent’s Category of Proposed System
Criteria Technical Mean NonTechnical Mean Total Interpretation Rank

Mean
Correctness 5 4.00 5 4.20 3.90 G 2
Reliability 5 3.40 5 4.60 4.10 G 1
Efficiency 5 3.60 5 4.20 4.10 G 1
Testability 5 3.60 5 4.20 3.90 G 2
Portability 5 3.80 5 4.20 4.10 G 1
Overall Mean 4.02
Overall G
Interpretation:

A – Average

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The table illustrates the user evaluation results of the proposed system
according to the respondent’s category; the computed weighted mean for
Correctness corresponds to a 3.90 average which is interpreted as Good.
On the other hand the computed weighted mean for User Reliability
category is 4.10 which describe the analysis as Good. 4.10 weighted mean is seen
on the Efficiency category that equates to the interpretation of Good, 3.90
weighted mean is shown on the Testability category and 4.10 for Portability which
equates to Good. The total computed weighted mean for the user evaluation result
is 4.02 which describes as the overall computed mean as Good. From the tabulated
result, the level of effectiveness of the proposed system evaluated is good.
C. System Testing
Table 13
Percentage of the System Efficiency Evaluated by the System Testing
Result
System Testing 3 2 1 AVG

Block and White 8 7 5 2.15
Box Testing
Unit Testing 9 8 3 2.30
Security Testing 10 9 1 2.45
Integration Testing 12 6 2 2.50
No. of Respondents 20
Overall 2.35 (Full
Interpretation: Compliance)

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(Results of System Testing in terms of Expertise)
The Table illustrates the system testing according to the field expertise, the
average measurement of Block and White testing 2.15, for the average
measurement of Unit Testing 2.30, for the average measurement of system testing
2.45 and for the average measurement of integration testing 2.35. The respondents
gave higher rating on system testing of 2.50 than respondents who gave low rate
of 2.15.
The total computer weighted mean for the system evaluation result is 2.35
which describes as Full Compliance.
There is no significant difference between effectiveness of the system
evaluated by the user evaluation result of the present, the proposed system and the
prototype system in terms of: Correctness, Reliability, Efficiency, Testability and
Portability.
Table 14
Result of Software Evaluation computed in One way ANOVA
Ave_Eval
Sum of Df Mean F Sig
Squares Square
Between 16.917 11 1.538 8.978 0.000

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Groups
Within 3.083 18 0.171
Groups
Total 20.000 29
Table 15
Result of Software Evaluation: Existing, Prototype and Proposed

System
Ave_Result
Ave_Exist Ave_Prot Ave_Prop
Mean 2.54 3.26 4.02
Interpretation Average Average Good
The Table illustrate the computed difference was found to be significant
since the computed value 2.54 from the Existing System, and 3.26 from the
Prototype System is less than the tabular value of the Proposed System which
equates to 4.02 with this result the researcher rejects the null hypothesis that there
is no significant difference between the effectiveness of the system evaluated by
the user evaluation result of the present, the proposed system and the prototype
system.
CHAPTER 5

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Conclusion
The system proposal entitled “Payroll Management System” will be
beneficial to the company for maximizing its profits; and minimizing manpower
and additional equipments necessary for LAN-Based Time keeping and Payroll
System.
With the use of this new system, computations and gathering are all
accurate, Data manipulating and processing are expedited, report generations ate
faster and security for the held are better, and consumes less office space, a
powerful business tool that would greatly aid updating of new time keeping and
payroll system.
The computed difference was found to be significant since the computed
value 2.54 from the Existing System, and 3.26 from the Prototype System is less
than the tabular value of the Proposed System which equates to 4.02 with this
result the researcher rejects the null hypothesis that there is no significant

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difference between the effectiveness of the system evaluated by the user
evaluation result of the present, the proposed system and the prototype system.
This “LAN-Based Timekeeping and Payroll System by using Biometrics”
thus increasing effectiveness by a very considerable amount.
Recommendation
Based on the performance of the LAN-Based Timekeeping and Payroll
system using Biometrics, the researchers highly recommend that this study be
implemented to any company and other possible branches. Also with its
dependable performance and easy to use procedures, this study can be a great help
for companies and organizations concerning their Time Keeping and Payroll
system using Biometrics.
Appendix A

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Context Diagram
0 Payroll Report
Payslip
Login
FingerPrint
Employee LAN-BASED TIMEKEEPING Human Resources
AND PAYROLL SYSTEM Employee Details
FOR BLANCO FAMILY
Invalid Finger Print
ACADEMY
SSS,PhilHealth, Pag-Ibig,
TAX Details
Employee
Details
SSS,PhilHealth, Pag-Ibig,
Login TAX Details
Payroll
Report
Accountant
Figure 4.1: Context Diagram for Time keeping and Payroll System
Appendix B

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Data Flow Diagram
Invalid Fingerprint
Employee Attendance Record
1
D1 Employee File
Fingerprint
Employee
Validate
Fingerprint Employee Record Employee Details
D2 Deduction File 67
Computed Deductions
(SSS, Pag-Ibig, PhilHealth ,
WithHolding Tax) Add
Employee
Computed Gross Pay

2
Employee Details
Compute
Gross Pay
Accountant/ Admin
Computed Gross Pay
Deduction Tables Employee File

D3 D1 D2 Deduction File
(SSS, PhilHealth, Pag-Ibig)
3 Employee Attendance Record Deduction Detail
SSS, Pag-Ibig, 5
PhilHealth Deduction 4 Payslip Details
Compute (Employee record, Deduction
Details)
Net Pay Computed payroll
(Net pay, Deductions) Generate
Generate
payroll
Payslip
Report
Computed Payroll
(net pay deductions)
Payroll Payroll
Payslip
Report Report
D1 Employee File Employee Admin Accountant
Employee Details
Deduction Details
7 D2 Deduction File
SSS, Pag-Ibig, PhilHealth
Deduction
Deduction
Update D3 (SSS, Pag-Ibig, PhilHealth)
Deduction or
Withholding Tax
Employee D4 Withholding Tax
Files
Deduction details,
Employee details
SSS, Pag-Ibig, PhilHealth
Deduction
Admin/Accountant
Figure 5: Data Flow Diagram for Time keeping and Payroll System
Appendix C

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System Flowchart
Enter New
Human Time Timesheet
Add Employee Employee Employee
Resources In & Out
information
Calculate
Set Basic Retrieve Old Finger Print Reports
Total hours
Salary Employee Record Registration
of worked
Calculating Calculating all

Scanning
Allowances Payroll the Earnings
Finger Print
Processess and Deductions
Deductions
Payslip
and Timekeeping Payslip
Loans And
Payroll
Employees
Figure 6: System Flowchart for Time keeping and Payroll System
Appendix D

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Hierarchical Input Process Output
Proponents: Chester I. Barry and Joemel A. Valenzuela Program: LAN-BASED Timekeeping and Payroll System using Biometrics for
Pag-IBIG Fund
Module: 1.0
Input Process Output
Add, Edit, Delete, save,&

1 Employee Management New employee record added
search Employee, Set salary.
Search Employee, set name of New employee finger print

2 Finger Print Registration
Finger to be enrolled/scan. record added
Retrieves the employees

3 Attendance Monitoring Attendance/Daily time record
In and out.
Search employee, Schedule

4 Payroll Transaction Print Payslip Report
Information Generate Payroll
Setting the loan type, amount New loan added to employees

5 Loan
and payment period record
New leave added to employee

6 Leave Set the leave date for employee
record
7 Holiday Set Holiday New holiday Record added
8 Report Generating Reports for payslip,

Taxes and timesheet Summary Reports
9 Access Control Privileges to access some

operations User privileges update
Figure 7: Hierarchical Input Process Output for Time keeping and Payroll
System

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Proponents: Chester I. Barry and Joemel Valenzuela Program: LAN-BASED Timekeeping and Payroll
System using Biometrics for Blanco Family Academy
Module: 1.1 Employee Management
INPUT PROCESS OUTPUT
Add New Employee’s Input and Save Employee’s New Employee Information
Information Information
Employee Information
Edit Employee’s Information Search Employee and edit
updated
Search Employee to be
Set Schedule Employee Schedule Updated
Scheduled
Input Basic Salary Rate

Set Employees Salary Employee Salary Updated
And reset deduction
Proponents: Chester I. Barry and Joemel Valenzuela Program: LAN-BASED Timekeeping and Payroll
System using Biometrics for Blanco Family Academy
Module: 1.2 Finger Print Registration
Validating Employee
Employee Name Request Set Name of Finger Print Fingerprint
Finger to be enrolled Scanning of Fingerprint Employee Fingerprint updated
Figure 7.1: Hierarchical Input Process Output for Time keeping and Payroll
System

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Proponents: Chester I. Barry and Joemel Valenzuela Program: LAN-BASED Timekeeping and Payroll System using
Biometrics for Blanco Family Academy
Module: 1.3 Attendance Monitoring
Scanning of Employee Verifying the Finger Print Time log updated

Fingerprint Login/Logout
Getting the Schedule to be

Manual Input of Time Time log updated
Logged
Module: 1.4 Payroll Transaction
Generate the employee’s Payroll Results

Employee Name
Payroll
Module: 1.5 Loan
Set Type of Loan and Interest Loan Updated

Search Employee Name
And Amortization Period
Checking of cash to be
Input amount of cash advance Cash advance updated
borrowed
System

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Module: 1.6 Leave
Set Date Period to be

Checking of type of Leave New Leave File
submitted
Module: 1.7 Holiday
Add, delete and save type of

Set Type of Holiday New Holiday Added
Holiday
Module: 1.8 Reports
Setting the name of

Select type of report View Report
employee, month and year
Module: 1.9 Access Control
Enrolled sections to be
Select User New User Added
accessed by a user
System

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Appendix E
Visual Table of Contents (VTOC)
1.0
Timekeeping and
Payroll System
1.1 1.2 1.3 1.4

1.5
Employee Finger Print Attendance Payroll
Loan
Management Registration Monitoring Transaction
1.9
1.6 1.7 1.8
Access
Leave Holiday Reports
Control
Figure 8: Visual Table of Content for Time keeping and Payroll System
1.2
Finger Print
Registration
1.2.1 1.2.2
Search Scan
Employee Finger
Figure 8.1: Finger Print Registration

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1.1
Employee
Management
1.1.1 1.1.2 1.1.3 1.1.4 1.1.5 1.1.6 1.1.7

Add Edit Delete Save Set Set Search
Employee Employee Employee Employee Salary Schedule Employee
Figure 8.2: Employee Management
1.3
Attendance
Monitoring
1.3.1
Time In & Out
Identifier
Figure 8.3: Attendance Monitoring

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1.4
Payroll
Transaction
1.4.1 1.4.4
1.4.2 1.4.3
Search Schedule
Calculate Print
Employee Information
Figure 8.4: Payroll Transaction
1.5
Loan
1.5.1
Search 1.5.2 1.5.3 1.5.4
Employee Loan Type Loan Amount Amount Period
Figure 8.5: Loan

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1.6
Leave
1.6.1 1.6.3
1.6.2
Search Submit
Set Date
Employee Leave
Figure 8.6: Leave
1.7
Holiday
1.7.1 1.7.2 1.7.3

Set Holiday Save Delete
Figure 8.7: Holiday

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1.8
Reports
1.8.1 1.8.2 1.8.3 1.8.4 1.8.5

Payslip Tax SSS PhilHealth Pag-IBIG
1.8.7
1.8.6 1.8.8 1.8.9
Loan
Timesheet 13th Month Tax Refund
Contribution
Figure 8.8: Reports
1.9
Access
Control
1.9.6
1.9.1 1.9.2 1.9.3 1.9.4 1.9.5
Set Username &
Select User Enrolled Non Enrolled Submit Cancel
Password
Figure 8.9: Access Control
Appendix F
Entity Relationship Diagram

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Age
Address Status
Empname Position DeptID DeptName

EmployeeID Division
Works
Admin Register Employee Department
For
EmployeeID Name
File Record Has
Date
Time In & Out Daily Time

Record Position
Department
Position
PositionID PositionName
Goes
To
Distributes
Accountant
Payslip
Employees Computes Deduction Determine
EmployeeID Name Department
Employee’s Loans
Salary &
Taxes
PagIBIG
ITW (BIR) Gross Pay
PhilHealth Net Pay

SSS
Figure 9: Entity Relation Diagram of Time Keeping and Payroll System
Appendix G

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Economic Feasibility
OPERATION COST (Existing for a Pen Manufacturing Company)
A. Personnel Monthly Annually

(2) Payroll Personnel @ 16,000 32,0000.00 384,000.00
32,000.00 384,000.00
B. Supplies
(2) Log book @ 85.00 170.00 2,040.00
(5) Ball pen @ 7.00 35.00 420.00
(2) Two small box staple wire @ 19.25 38.05 462.00
(1) Liquid eraser @ 25.00 25.00 300.00
(1) Small box of paper clip @ 21.00 21.00 252.00
Total Supplies Cost 289.05 3,474.00
C. Equipment
(1) Calculator @ 270 Salvage value = 270.00 * .2
= 54.00
Description value = 270.00 – 54.00
= 216.00/year

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(1) Medium stapler @ 75.00 Salvage value = 75.00 * .2
= 15.00
= 60.00/year
(1) 12inch ruler @ 24.00 Salvage value = 24.00 * .2
= 4.80
Description value = 24.00 – 4.80.00
=19.20/year
Total Equipment Cost: 310.20
A. Personnel 384,000.00
B. Supplies 3,474.00
C. Equipment 310.20
Total Annual Cost (Existing System) 387,784.20
OPERATION COST (Proposed)

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A. Personnel Monthly Annually

(1) Payroll Personnel @ 16,000 16,000.00 192,000.00
(The other personnel will be assign 16,000.00 192,000.00
Provided a new job description by the employer)
B. Supplies
(2) Ball pen @ 7.00 14.00 168.00
(4) Folder @ 8.00 32.00 384.00
(4) Fastener @ 3.00 12.00 144.00
(1) Ream bond paper @ 160.00 160.00 1,920.00
218.00 2,616.00
C. Equipment
(1) Medium stapler @ 75.00 Salvage value = 75.00 * .2
= 15.00
=60.00/year
(1) Canon printer @ 6525.00 Salvage value = 6525.00 * .2
= 1,305.00

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=1,740.00/year
1BOX LAN CABLE @ 800.00 Salvage value = 800.00 * .2
= 160.00
=213.33/year
1BOX RJ45 @ 150 .00 Salvage value =150.00 * .2
= 30.00
=40.00/year
(1) Router @ 1398 .00 Salvage value =1398.00 * .2
= 270.06
Description value =1398.00 – 270.06
=375.08/year
Total Equipment Cost: 5280.33
A. Personnel 192,000.00
B. Supplies 2,369.13
C. Equipment 2334.82

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Total Annual Cost (Proposed System) 196703.95
Development Cost
A. Hardware Cost
(3) Computer set @ 16181.00
Diamond Evolution LCD17 inch Monitor = 5082.00
Diamond Evolution AVR = 535.00
Diamond Evolution Mouse = 150.00
Diamond Evolution Key Board = 250.00
Diamond Evolution Desktop =10164.00
Desktop Specs.
Internal Memory RAM = 2.00GB
Hard Disk Capacity =60.00GB
Processor = Intel Pentium 1.60GHZ
Video Card =400 300 AGP
Window System Type = MS Window7 32bit
Salvage value = 48543.00 * .2
= 9708.06


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=12,944.98/year
(1) Biometrics @ 4500.00 Salvage value = 4500.00 * .2
= 900.00
=1200.00/year
1BOX LAN CABLE @ 800.00 Salvage value = 800.00 * .2
= 160.00
=213.33 year
1BOX RJ45 @ 150 .00 Salvage value =150.00 * .2
= 30.00
=40.00/year
(1) Router @ 1398 .00 Salvage value = 1398.00 * .2
= 270.6

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=375.8/year
(1) Canon printer @ 6525.00 Salvage value = 6525.00 * .2
= 1305.00
=1740.00/year
Total Hardware Cost 16138.31
B. Software Cost
(1) Visual Studio 2008 @ 1825.00 Salvage value =1825.00 * .2
= 365.00
= 486.26
Total Software Cost 486.26
C. Labor Cost
Programmer 12,000 per Month = 48000.00
Total Labor Cost = 48000.00

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D. Supplies Cost
Printer Ink 500.00
Ream bond paper 160.00
Ball pen 7.00
DVD-R 15.00
Total Labor Cost 682.00
E. Electric Consumption Cost

Florescent 25watts * Hrs usage in 4 months/ 4months
25watts * 128 / 4 = 800.00
Computer 220v * Hrs usage in 4 months/ 4months
220v * 128 / 4 = 2560.00
Total Labor Cost 3650.00
F. Food and Transportation Cost 2000.00
A. Hardware Cost 16,138.31

B. Software Cost 486.26
C. Labor Cost 48,000.00
D. Supplies Cost 682.00
E. Electric Consumption Cost 3,650.00
F. Food and Transportation Cost 2,000.00
Total Development Cost 22,956.57

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Cost and Benefits Analysis
Existing Cost 387,784.20

Proposed System Cost 196,703.95
Annual Cost Saving 191,980.25
YEAR ANNUAL COST PRESENT CUMMLATIVE

BENEFIT VALUE PRESENT VALUE
1 191,980.25 171,438.00 171,438.00
2 191,980.25 153,200.00 324,628.00
3 191,980.25 136,690.00 461,318.00
4 191,980.25 122,099.00 583,417.00
5 191,980.25 108,853.00 692,270.00
To get the Present Value:
Present Value =191,980.25* 1 (1+12/100) 171,438.00

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=191,980.25* 1 / (1.12) for first year
=191,980.25* .893
Present Value =191,980.25* 1 (1+12/100)2 153,200.00
=191,980.25* 1 / (1.12 x 1.12) for second year
=191,980.25* .797
Present Value =191,980.25* 1 (1+12/100)3 136,690.00
=191,980.25* 1 / (1.12 x 1.12 x 1.12) for third year
=191,980.25* .712
Present Value =191,980.25* 1 (1+12/100)4 122,099.00
=191,980.25* 1 / for fourth year
(1.12 x 1.12 x 1.12 x 1.12)
=191,980.25* .636
Present Value =191,980.25* 1 (1+12/100)5 108,853.00
=191,980.25* 1 / for fifth year
(1.12 x 1.12 x 1.12 x 1.12 x1.12)
=191,980.25* .567
To get the payback period:
Formula: Payback Period = Annual Cost / Present Value
Payback Period per Year Annual Cost Present Value
1.1198 YEAR 1 191,980.25 171,438.00


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1.2531 YEAR 2 191,980.25 153,200.00
1.2531 YEAR 3 191,980.25 136,690.00
1.5723YEAR 4 191,980.25 122,099.00
1.76367 YEAR 5 191,980.25 108,853.00
To get the net saving:
Formula: Net Saving = End Cumulative Present Value – Total

Development Cost
Net Saving per Year End Cumulative Total

Present Value Development Cost
148,481.43 year1 171,438.00 22,956.57
301, 671.43 year2 324,628.00 22,956.57
438,361.43year3 461,318.00 22,956.57
560,460.43year4 583,417.00 22,956.57
669,313.43year5 692,270.00 22,956.57
To get the ROI:
Formula:
ROI End Cumulative Total End Cumulative

Present Value Development Cost Present Value

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86.61 Year 1 171,438.00 22,956.57 171,438.00

92.93 Year 2 324,628.00 22,956.57 324,628.00
95.02 Year 3 461,318.00 22,956.57 461,318.00
96.06 Year 4 583,417.00 22,956.57 583,417.00
96.68 Year 5 692,270.00 22,956.57 692,270.00
Return of Investment (ROI) (5 years) = ((End Cumulative Present
Value – Total Development Cost / End Cumulative Present Value) * 100
Appendix H
Existing System
The Organization which is maintaining most of their day-to-day

transactions date in the register (manually). The employees of the organization
are doing the whole work manually. All the work is done manually
(maintained and registers) so different employees are appointed for the
maintenance of register containing all information related to the organization
The Timekeeping and Payroll System of any company is inaccurate

sometimes when it comes to computing their time logs and payroll. Also, the
Employees of the company are using Bundy Clock to indicate in their Date
Time Card their time of work in and out every day and the Accountant
administrator based the wages of each employee in that time Card. It is hustle
to use and long term creating the payroll slip, and the time keeping which the

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Human Resources need to encode all the attendance of employee using

spreadsheets. Therefore the Company’s Time Keeping and Payroll system
need improvement.
Appendix I
User Manual
Figure 10: Main Form
Main Form

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1.) Picture- it display the employee photo.
2.) Employee Information- it shows the information of the employee that has
been logged.
3.) Login- it display the login name and time of the employee.
4.) Time- display the current time.
5.) Logout-it display the logout name and time of the employee.
6.) Manual login- it allow the user to input the logged manually.
Figure 11: Form Manual Login
Form Manual Login
1.) Username- Where the user inputs the username.
2.) Password- Where the user inputs the password.
3.) Login- Submit the username and password to enter the Form schedule.
4.) Back-cancel the session and to go back to the Main Form.

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Figure 12: Form Manual
Form Manual
1.) Employee Information- Select an Employee that will add a date and time
schedule.
2.) Date- it allow the user to select a date that will to set the schedule.
3.) Get Schedule- it allows the user to view the Schedule.
4.) Time- where the user inputs the time of the employee’s time in and out.
5.) Save- it allows the user to save the schedule.
6.) Back- it allow the user to close the form and go back to the main form.

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Figure 13: Login Form
Login Form
1.) Username- Where the user inputs the username.
2.) Password- Where the user inputs the password.
3.) Login- Submit the username and password to enter the Form Management.
4.) Cancel -cancel the session and to go back to the Main Form.

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Figure 14: Form Management
Form Management
1.) Employee Management- it allows the user to add new employee

Information, were it can be edited, set it salary delete and view the
information about the employee.
2.) Finger Print Registration- It allows the user to select an employee that
will enroll its fingerprint.
3.) Payroll Transaction- Where the user select an employee to view the work
details and compute its salary deduction.
4.) Loan- it allow the user to view, add a new loan and cash advance for an
employee.
5.) Leave- it allow the user to set a leave for an employee whether it Vacation,
Sick, Paternal or Maternal leave.
6.) Holiday- It set a Holiday if it’s Special or non working Holiday.
7.) Reports- it allow the user to view all kind of reports.
8.) Control access- It allows the admin to add an account that can be access a
limited section in the system.
9.) Logout- it allows the user to close the Form Management.

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Figure 15: Employee Management Form
Employee Management Form
1.) Search- It allows the user to search the name of the Employee.
2.) Next & Previous – it allows the user to view the next or previous
Employee.
3.) Employee Information- it allow the user to enter new and edit information
of the employee.
4.) Add Employee- where the user can add new employee Information.
5.) Edit Employee- where the user can edit the employee information.
6.) Salary- allows the user to set the salary for the employee.
7.) Set Schedule- allows the user to set the schedule of the employee
8.) Delete Employee- where the user can delete the current employee.
9.) Clear- where the user can clear the information of the employee.
10.) Save Employee- allows the user to save the new employee information.
11.) Back – it allows the user to go back in the Form Management

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Figure 16: Form Schedule
Form Schedule
1.) Day- it allow the user to select the days of work of an employee.
2.) Start Time- It allows the user to select what time of start of work on the
employee.
3.) End Time- It allows the user to select what time of end of work on the
employee.
4.) Add- where the user can add the days and time of schedule of the
employee.
5.) Delete- where the user can remove the days of worked the employee.
Figure 17: Salary Form
Salary Form
1.) Allowances- it allows the user to add some aalowances into the employee.
2.) Monthly Salary- it allows the user to enter the basic salry of the employee.

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3.) Deductions- it allow the user to see the deductions of SSS, Philhealth and
Tax and its contributions every month.
4.) Table- it will view the deduction table of SSS, Philhealth and Tax.
5.) Reset- it resets all the deduction of employee.
6.) Save- it saves the deductions of an employee.
Figure 18: Finger Print Registration Form
Fingerprint Registration Form
1.) Emloyeename- it allows the user to select the employee to be registered its
fingerprint.
2.) Search- it allows the user to search employee.
3.) Input finger- it allow the user to select what finger to be registered.
4.) Register- it registered the finger print of the employee.
5.) Cancel- cancel the registration of the finger print.
6.) Sensor- it recognize the fingerprint of employee to be registered.

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Figure 19: Payroll Transaction Form
Payroll Transaction Form
1.) Search- it allows the user to search the employee.
2.) Print-shows the print results of payslip of the employee.
3.) Close-it close then form and stop the transaction.
4.) Next & Previous- it view the next and previous employee.
5.) Late and Overtime – it Display the value of lates and overtime.
6.) Work Details- it shows the worked hours, days, present absent and leave of
employee.
7.) Deductions- it display the deduction of SSS, Philhealth, Tax and Loans.

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8.) Month- it allows the user to select on what month of the transaction he/she
wants to transact.
9.) Year-it allows theuser yto input on what year he/she wants to transact.
10.) Calculate- it computes the worked details, OT,Lates adn deductions.
11.) Overtime- it shows if the user wants to add the overtime in the
computations.
12.) View calculations- it allows the user to view the computations of

the transaction.
Figure 20: Loan Form
Loan Form
1.) Search- it allows the user to search the employee’s name.
2.) Loan Type- it allows the user to select on what type of loan that it will be
given to the employee.

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3.) Loan Amount and Interest- it inputs the amount and interest the loan.
4.) Amortization Period- it set the period of starting date to end and how long
it will be a fiished.
5.) Compute- it computes the loan amount and interest.
6.) Save- save the current type of loan.
7.) Cash Advance Amount- it inputs the amount needed by the employee
maximum of 500 pesos.
8.) Save- save the cash advance.
9.) Cancel- cancel the transaction.

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Figure 21: Leave Form
Leave Form
1.) Search- it allow the user to search the name of employee.
2.) Date Period-it set the date of Leave.
3.) Type of leave- where the user can select what type of leave.
4.) Submit- submit the leave form of employee.
5.) Exit- it close the form and back to the Form Management.
Figure 22: Holiday Form

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Holiday Form
1.) Date- sets the date of Holiday.
2.) Description- the user inputs the description of holiday.
3.) Holiday Type- it allows the user to choose what type of holiday he/she
wants to add.
4.) Add- add new type of holiday.
5.) Save- saves the new type of holiday.
6.) Delete- It allows the user to delete a type of holiday.
7.) Back- it close the form Holiday.

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Figure 23: Form Reports
Form Reports
1.) Reports- it allows the user to select a type of reports.
2.) Report Type- where the user can select a type of report whether its group
or individual.
3.) Search- it allows the user to search the name of employee.
4.) Month- it allows the user to select what month he/she wants to generate.
5.) Year- it allows the user to select what year he/she wants to generate.
6.) Generate- it allows the user to generate the Report.

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Figure 24: Form Access Control
Form Access Control
1.) Select user – it allows the admin to select user that he/she wants to give
some access on the system.
2.) Submit- it allows the admin to submit the enrolled section that will be
accessed by the user.
3.) Cancel- Cancel the enrolled section .
4.) Enrolled button- it allows the admin to enroll some section that he/she
wants to give some access in the system.
5.) Username- it allows the user to input its username to accessed the system.
6.) Password- it allows the user to input its password to accessed the system.

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Bibliography
A. Books
Steven bragg, “Accounting for Payroll” page 42-48, 2004
Walpale Myer, “Probability Statistics for scientist and Engineer”, 7th edition,
B. Journals and Magazines
Mendrz, Andrew: “Vision Designer Inc.”, 2010
Raks, Ramon: “The Computer Edge of the New Employment and
Opportunities”, The Daily Star, Page 14, October 2005.
Primer, Thomas: “Automated Computerize Process” Readers Digest magazine,
page 45, May 2005.
Better Humans: “Sweet FingerPrint”, 2003
Watson: “ESVES Biometrics System”, 2011
Johnson: “Modern Computer Accelerates”, 1994

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C. Unpublished Materials (Theses)
Alam, Khan: “Automation of time attendance System”, Jagannath University,
Dhaka, March 2004.
Computer Engineers: “Computerized Daily Time Record System”, BUET,
Dkaha, August 2007.
Ovic Alam: “Biometrics Attendance Record System”, University of Dhaka,
Manila, March 2001.
D. Electronic Sources
http://www.scribd.com/doc/45262822/Thesis-1-4-ted
Wikipedia: Terminologies
Http://Wikipedia.org

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Payroll Management System

Master of Business Administration (SRM Institute of Science and Technology)

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Payroll Management System Page 2

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Payroll management system encompasses all the tasks involved in paying an

The specific tasks involved in payroll administration tend to vary according to

Handling payroll-related problems are part of payroll administration as well.

Payroll administration can be very simple, involving the payment of just a

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handled by the owner of the company or an employee. However, other

Payroll is defined as a method of administrating employees’ salaries in the

Chapter Contents Page no

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Payroll Management System Page 6

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Payroll Management System Page 7

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The Computer nowadays is a basic need for businesses or companies. It

very competitive in the business.

Payroll Management System Page 8

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Figure 1: Components of Payroll

Allowances, incentives, bonuses and reimbursements are based on

Payroll Management Processes

Calculation of gross salaries and deductible amounts is a tedious task which

a) Manual System:- Manual payroll system is the traditional payroll system

Payroll Management System Page 9

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b) Accountant: Accountant is a professional having a degree or diploma in

Figure 2: Payroll Processing

The data is provided to the consultants/outsourcing firms. The various

 Analysis of Payroll records, payroll taxes

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 Medical claim processing

 Employee Insurance & Provident fund processing

 Quality Audit procedures & planning

integration of biometric fingerprint scanner for time keeping. It contains the

automation of time keeping for every employee to generate payroll transaction. It

non-working or working Holiday, access control and also calculation of 13 th

month pay and tax refund yearly report.

Statement of the Project

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2. Does a LAN-Based Timekeeping and Payroll system using Biometrics will

timekeeping using biometrics, secure all payroll records, calculating 13 month

pay, tax refund and generate all payroll reports?

3. If a LAN-Based Timekeeping and Payroll system using Biometrics will be used

terms of Correctness, Reliability, Efficiency, Testability and portability?

6. Is there a significant difference between effectiveness of the system when

prototype system in terms of Correctness, Reliability, Efficiency, testability and

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Specifically, attain to:

log-out of the employees and staff.

B.5 Calculate payroll transaction easily; and

B.6 Summarize all the Deducted Contribution of Employees.

needs of the user of the system.

 The proposed system will provide a (Local Area Network) LAN-Based to