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PAYROLL MANAGEMENT SYSTEM

2011

CHAPTER1 : INTRODUCTION
Payroll is the 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. Payroll plays a major role in a company for several reasons. From an accounting point of view, payroll is crucial because payroll and payroll taxes considerably affect the net income of most companies and they are subject to laws and regulations. From an ethics in business viewpoint payroll is a critical department as employees are responsive to payroll errors and irregularities: Good employee morale requires payroll to be paid timely and accurately. The primary mission of the payroll department is to ensure that all employees are paid accurately and timely with the correct withholdings and deductions, and to ensure the withholdings and deductions are remitted in a timely manner. This includes salary payments, tax withholdings, and deductions from a paycheck. Thus the department which deals with payroll of all the employees is called payroll management department. Initially this work was done manually and hence it was quite time consuming and error prone. This caused the need of managing the payroll through the computer. Our minor project deals with developing a window application to manage the pay of the employees of any college.

The purpose of this project is to obtain agreement regarding the objectives the system must meet. This Payroll system´ helps the college to honor its professional commitments by following a tailored version of the standard process of calculating the salary of all its employees. This application is supported by database. Which consist of personal details of the employee as well as their salary details and their leave allowances. Based on these details at the end of every month the application automatically generates a salary slip for the employee and also maintains the same in the database. . This Payroll Processing application also considers employee’s income tax regulation. An employee’s pay is decided by his post and experience. To this salary there are certain additions and deductions.

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1.METHODOLOGY: The salary is decided by the post of the employee. Warden & Handicapped. DA (Dearness Allowance) . Customer:-The target user group of this application basically consists of Administrator. If he is a professor then he gets a different salary and so on. Then to this salary there are certain addition and deductions depending on the gross salary.PAYROLL MANAGEMENT SYSTEM 2011 Additions include AGP (Annual Gross pay) . IT (Income Tax) & Other Deductions. HRA (House Rent Allowance). Deductions include PF (Provident Fund). calculate and their salary and then generates the pay slip. The additions and deduction are listed in table no 1. Depending on their various salary their annual gross pay is decided which is further added to the salary. For example if the the employee is the principle then he get a salary ranging from 37400 – 67000 Rs. TABLE NO 1: LIST OF ADDITIONS AND DEDUCTIONS SALARY ADDITIONS AGP DA HRA CCA OTHERS The salary for different employees is different. 1. DEDUCTIONS PF QUARTER RENT INCOME TAX OTHERS Page 2 . QR (Quarter Rent). Purpose of the project is to maintain the information regarding the employee. Based on these considerations the salary of each employee is deducted at the source. CCA(City Compensatory Allowance) & Other Allowances such as ANO. Who is generally a person from the accounts department. The following table gives the different salaries of an employee in a college with their AGP.

2.1. CCA (City Compensatory Allowance) is fixed as Rs 240 a month for every employee.PAYROLL MANAGEMENT SYSTEM 2011 TABLE N0 2 -SALARY OF VARIOUS EMPLOYEES S. Other allowances are given to those employees who generally are responsible for some other duties as well such as ANO and warden.) 37400 – 67000 37400 – 67000 37400 – 67000 15600 – 39100 15600 – 39100 AGP 10000 10000 9000 7000 6000 1.NO 1 2 3 4 5 DESIGNATION PRINCIPAL PROFESSOR ASSOCIATE PROFESSOR ASSISTANT PROFESSOR(SENIOR) ASSISTANT PROFESSOR SALARY (IN RS. ADDITIONS DA(Dearness Allowance) is calculated from the following formulae: D A = 51% OF PAY + A G P. HRA (House Rent Allowance) is given only to those employees who do not live in quarters provided by the government but stay In their private accommodations . 1.DEDUCTIONS PF(Provident fund) is that amount that is deducted at the source and is later on given to employee on his retirement with interest. This is done so that the employee does not have to depend upon any one in his old age when he does not have any source of income. Page 3 .1.1. It is calculated as: H R A = 20% of PAY + A G P.

TABLE NO 3:. Quarter rent is decided upon the salary received by the employee.NORMS OF QUARTER RENT QUARTER RENT LESS THAN 3700 3700 – 5500 5500 – 8300 8300 – 10800 10800 & ABOVE 1% OF TOTAL PAY 1.PAYROLL MANAGEMENT SYSTEM 2011 Pf is calculated as: PF = 12% of actualpay + AGP +DA QUARTER RENT: if an employee stays in the quarters provided by the government then he has to pay some money as maintenance bill. Page 4 .5% OF TOTAL PAY 2 % OF TOTAL PAY 2.5% OF TOTAL PAY 3% OF TOTAL PAY INCOME TAX: the income tax is decided and deducted from the source depending upon the yearly budget decided by the government. The following table gives the quarter rent depending upon the salary. This is called quarter rent. These ADDITIONS & DEDUCTIONS are then used to calculate the gross salary.

. This if correct shall lead to the next page. The customer.1. The purpose of this phase is to identify and document the exact requirements for the system. INTRODUCTION:Requirements analysis is usually the first phase of large-scale software development project. Deleting an employee would mean that the employee has left the job. THE SECOND PAGE:The second page will allow the admin to ADD. When a new employee is added the admin will enter certain personal details of the employee such as name.g. EDIT & DELETE employee. the developer. more interaction is required between the user and the developer. THE FIRST PAGE:The first page will consist of a login.FUNCTIONAL REQUIREMENTS: 2. It is undertaken after a feasibility study has been performed to define the precise costs and benefits of a software system.1. Based on this information the gross salary will be calculated by the software and stored into the database. Page 5 . a marketing organization or any combination of the three may perform such study. Further we will also require to know whether quarter rent will be deducted or not.PAYROLL MANAGEMENT SYSTEM 2011 CHAPTER 2: REQUIREMENTS: 2. department. pan no etc…When the employee has to be edited then the admin will be allowed to make changes to the employee’s details depending upon the new details. That is as soon as the software is run the software will ask for the username and the password.1. THE THIRD PAGE:The third page will take in the salary details of the employee such as what is the post of the employee? What is his AGP and other allowances. for a system that has never been defined. In cases where the requirements are not clear e. The requirements at this stage are in end-user terms.

Page 6 . The database must not by any means be accessible to the wrong hands. a salary voucher will be generated which can be handed over to the employee. SECURITY REQUIREMENTS: The data that is stored in the data base is highly sensitive and thus it must be protected at all costs. PERFORMANCE REQUIREMENTS: Stored so that the information is secure . all the additions and deductions and finally the net salary. 2.PAYROLL MANAGEMENT SYSTEM 2011 THE FOURTH PAGE: Depending upon the values that have been calculated and stored in the database. After the admin is done with his/her work he can simply close the software.3.This payslip contains the salary. 2.further a backup must also be present in case of a failure.2.

ER – DIAGRAM: Manager Employee number Employee Name Address Date Started Work For Department Department Name Department no FIGURE 1: ER-DIAGRAM BETWEEN EMPLOYEE AND DEPARTMENT Page 7 .4.PAYROLL MANAGEMENT SYSTEM 2011 2.

2) FIRST NAME LAST NAME NAME ID DOB PHONE NO DESIGNATION EMPLOYEE GETS SALARY HRA MEDICAL ALLOWANCE BASIC CCA DA INCENTIVE FIGURE 2: THE ER DIAGRAM BETWEEN EMPLOYEE AND A SALARY. Page 8 .PAYROLL MANAGEMENT SYSTEM 2011 ER – DIAGRAM depicting the relationship between an employee and the department in which the employee works.

PAYROLL MANAGEMENT SYSTEM 2011 2. which in our project is same as the administrator.STATE TRANSITION DIAGRAM: THEY show how the system behaves due to some external event. the models will contain a more detailed description of the key processes taking place. Similarly.5.. Page 9 . For this purpose the State Transition Diagram represents the state of the system and the transitions into different states when an external event happens. The following diagram shows the state transition diagram of the user.

PAYROLL MANAGEMENT SYSTEM 2011 FIGURE 3 : STATE TRANSITION DIAGRAM OF THE USER. 6.DATA FLOW DIAGRAM: Level 0 for payroll ststem 1 GET VALID TRANSACTION 2 GET MASTER PAYROLL 3 CALCULATE EMOLPYEE PAY 4 GENERATE ACCOUNTING ENTERES 5 PRODUCE EMPLOYEE PAY CHEQUE GENERAL LEDGER EMPLOYEE Page 10 .

PAYROLL MANAGEMENT SYSTEM 2011 FIGURE 4: LEVEL 0 DFD FOR PAYROLL SYSTEM PAYROLL LIABILITY DATA TIME CARDS PAYROLL CALCULATION EMPLOYEE MASTER FILE PAYROLL PROCSESSING REPORT SUPERVISOR TIME DATA TREASURER FIGURE NO 5: DATA FLOW DIAGRAM Page 11 .

Page 12 . FIG NO 7: ERROR BOX 3. This page is the main page and all the operations will be performed through this page. It provides options like adding /editing/deleting employee. Options to calculate and print employee slips.PAGE2x This page is the first page that the user/admin will view once he logs into the application. if the password page shall allow the or the username is incorrect then the following is displayed.PAYROLL MANAGEMENT SYSTEM 2011 CHAPTER 3 : DESIGN OF THE PROJECT 3. The logout option will log the user out of the application.2.1. It also provides tools like calculator. PAGE1: FIG NO 6 : FORM 1 This user or the admin to access the project if and only if he enters correct username and password.

PAYROLL MANAGEMENT SYSTEM 2011 FIG NO 8: FORM 2 3.PAGE 3:- FIG NO 9: FORM 3 Page 13 .3.

PROFES 01/12/19 09876543 TILAKNAGAR.P 12/3/197 09807878 VYAS COLONY 2 RFF 8 654 TABLE NO 5 : DATABASE TABLE emp_off emp_off emp_co emp_depart emp_lp emp_up emp_a emp_pan emp_job emp_bacc de ment ay ay gp no emp_00 IT 01/01/20 10000 20000 3000 #457JU8 1234567898 1 00 9 646 emp_00 CS 09/03/20 8000 16000 2400 #789JH9 1221383893 2 02 8 299 emp_pfacc 346789643 257 298080922 309 3. Page 14 . TABLE NO 4 : DATABASE TABLE emp_personal emp_personal emp_co emp_fina emp_lna emp_fana emp_do emp_cont emp_desig emp_address de me me me b act emp_00 SITA GUHA JANAK ASST. Further the reset button allows us to remove all the values that are already stored in the various textboxes.PAYROLL MANAGEMENT SYSTEM 2011 This form will add an employee to the the database emp_personal & emp_off the database is in access and is as shown. Make the necessary changes and save them back into the database.PAGE NO 4 This allows us to search by employee code and retrieve the values from the database.BIK 1 SOR 65 211 ANER emp_00 GEETA RAMAN AMBROSE ASSOCIATE. If there is no value in the employee code box and we try to retrieve the vaues then it will result in an error.4.

PAGE NO 5 FIG NO 11: FORM NO 5 Page 15 .5.PAYROLL MANAGEMENT SYSTEM 2011 FIG NO 10: FORM NO 4 3.

6. Page 16 .PAYROLL MANAGEMENT SYSTEM 2011 This form takes in the value of the emp_code from the user and will delete the employee from the database.PAGENO 6 :- FIG NO 12:.FORM NO 6 This form will take in the employee code and will generate the monthly slip as shown. 3.

5 FRAMEWORK[1]. MICROSOFT OFFICE ACESS 4.Hardware Requirements  PROCESSOR: Intel Core 2 Duo Processor T6400  RAM: 3 GB  KEYBOARD: 86 Keys Keyboard  HARD DISK: ± 160GB Page 17 .1.  COMPILER & IDE: MICROSOFT VISUAL STUDIO 2008 WITH 3. VISTA WIN7.1Software Requirements:  OS: Windows XP.1.1.  FRONTEND: C# LANGUAGE[2].  BACKEND: 2003[3].2.SOFTWARE AND HARDWARE REQUIREMENTS 4.PAYROLL MANAGEMENT SYSTEM 2011 CHAPTER 4:TECHNOLOGY (TOOLS & TECHNIQUES) 4.

HARDWARE LIMITATIONS: The other big problem associated with in sourcing payroll is that it forces companies to take on the burdens associated with hardware upgrades as well as the personal costs linked to system maintenance.PAYROLL MANAGEMENT SYSTEM 2011 CHAPTER 5 :LIMITATIONS:    The project is a windows application.  This project is being developed only for employees of a college hence it cannot be used by any other enterprise except a college. Where there are changes in the income tax. Since it is a windows application it is not present on the internet and thus the employees cannot access the details of their salary. Hence this project has to be annually upgraded according to the norms of the budget. Hardware may have to be purchased for data storage and processing.1. Hence it can run only on those systems on which it is manually installed.. Page 18 . 5. Every year in the month of July the budget is declared.

PRESSMAN SOFTWARE ENGINEERING. c Page 19 .COM WILKIPEDIA.COM AUTHORSTREAM.COM SCRIBD. GOOGLE.PAYROLL MANAGEMENT SYSTEM 2011 REFRENCES / BIBILOGRAPHY : INTERNET SOURCES:     BOOKS:   SOFTWARE ENGINEERING-SHALINI PURI.