Payroll System Essay

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Department of Computer Science College of Arts and Sciences Mariano Marcos state University Batac, Ilocos Norte PAYROLL SYSTEM Submitted to: MR. REYNOLD VILLACILLO Submitted by: JAIZEL GAMAYO NOVIE MAE REMIGIO CATHLYN ANN VALDEZ October 13, 2011 Acknowledgement We would like to extend our sincerest thanks to all the people who help us and for being a partner in conducting this study. To our parents, who always there for their moral and financial support; To Hon. Arlene Monje Torralba;Municipal Mayor of Badoc, Ilocos Norte for allowing us to design a new Payroll System for them;

To our friends for their encouragement and support in times of crisis; To our very patient teacher Mr. Reynold Villacillo for sharing and teaching us in making our project; Above all to our Almighty Father for giving us the strength, wisdom , and good health in order to finish our project. Jaizel Gamayo Novie Mae Remigio Cathlyn Ann Valdez -The researchers- TABLE OF CONTENTS Title PagePage INTRODUCTION Statement of the Problem Objectives Scope and Limitations Significance Assumptions Conceptual Framework REVIEW RELATED SYSTEM METHODOLOGY APPENDICES Request Letter Interview Guide

Interview Script LIST OF FIGURES FiguresPages 1 Ishikawa Diagram 2 Conceptual Framework LIST OF APPENDICES AppendicesPage A B C D E F G H I J K INTRODUCTION A payroll system involves everything that has to do with the payment of employees and the filing of employment taxes. As its most basic, it is the process by which an employer pays an employee for work performed. This is used to collect, store, manipulate information, summarize DTR, and compute for the salary of the employee. STATEMENT OF THE PROBLEM At present, Municipality of Badoc is using manual process in Payroll System.

With this kind of procedure, the researchers found that the current problem of their system is long and slow process. This endeavor is delved into the development of “Payroll System “. The study addresses the following problems: 1. Difficult to handle manual time in/ time out and computation 2. Delay of submitting DTR 3. Delay of signing the DTR of the employee 4. Time consuming 5. Lack of facilities OBJECTIVES This study aims to minimize effort and to save time in preparation and storage of Payroll System. Specifically the following objectives hereby guide us towards the development of the Payroll system.

We aim to design a computer-based reliable payroll system; to make an efficient and accurate computation of payroll; and to create a well-organized database. SCOPE AND LIMITATION The system delimited to developing “Payroll System” of Municipality of Badoc. The system would be storing and retrieving employee’s DTR on the system. It covers the computation, summarization and process of preparing the pay slip of each employee. It also computes the loan and taxes of the employee. The system does not support editing and online transaction. SIGNIFICANCE

The system will help the accounting section of municipality of Badoc especially the payroll maker/bookkeeper and the finance officer for better and accurate computation. It will lessen the time and effort of the payroll maker/bookkeeper preparing payments of employees. ASSUMPTIONS We will assume that there is already a record of their time in/ time out in the data base or in the system and also that they have already facilities to use like computers, etc. ISHIKAWA DIAGRAM Figure 1. Ishikawa diagram Ishikawa or fishbone diagram in Fig 1 presents the main problems of the existing system.

The main problems of the Municipality of Badoc regarding in their payroll system is long and slow process of payroll. The diagram shows the four major causes of problem encountered within the payroll system of Badoc. This are delays, manual, materials and time consuming. CONCEPTUAL FRAMEWORK Figure 1. Conceptual Framework. Conceptual framework is the proponents used to outline possible courses of action needed to present preferred approach to use in the whole study. A framework can help the proponents to visualize/ conceptualize their systems. It can help the proponents to explain why they are doing project in a particular way.

The figure above show the conceptual framework of our payroll system. It shows who will manipulate the system, the Employee, Personnel Officer, Accounting, and the cashier and it shows the process of the system and the database where different information about the Employee is stored. REVIEW RELATED SYSTEM This chapter includes the purpose of the related studies review. This research study cited article, which are relevant to the present investigation. It is composed of related system, which contains facts and information on the research problem at hand.

It also provides explanations and logical connections between previous researches and present work. There is an Inventory System that is related to our study which is found very use full for the proponents in making the system. It is little wonder that experts commonly cite inventory management as a vital element that can spell the difference between success and failure in today’s keenly competitive world. According to Godwin Udo (writing in production and Inventory management journal) companies that make good as of this technology are far better equipped to succeed than those who rely on outdated or unwieldy methods of control.

METHODOLOGY The development and research for the system was made possible by the use of Waterfall Methodology. The phases and their activities in the development of Payroll System of Municipality of Badoc are explained in this chapter. PHASE I-Requirements. This Phase is where the researcher gathered some data with regards to the development of the Payroll System of Municipality of Badoc. In order to gather data, the proponents came up with different activities of research in order to attain the system’s goal and aim. a.

Interview- The researchers conducted personal interview to some employee of Municipality of Badoc, specifically in the accounting section. Information was gathered about the existing payroll system of the Municipality of Badoc. b. Observation- The researchers made an observation in the said pilot company. We observed their processes and how their system worked. PHASE II- Design. During this phase, the researchers undergone an analysis towards the data that they gathered. a. Sketch- The researchers sketch those data to represent the design of the software using different diagrams such as context diagrams, use case diagrams and others.

PHASE III- Implementation. In this phase the researchers will do the coding to be converted into a stage the machine readable and understandable format using C++/Visual Basic programming language as the flat form. Coupled to this activity are the encoding and debugging activities. PHASE IV- Verification. A simple discussion on the capabilities of the software will do and it will test if the system is working. The activity users meet in the course of their computer works. PHASE V- Maintenance. In this phase the system programmer will maintain the system. He/she will check and debug if there’s a problem on it.

APPENDICES Appendix A. Request Letter Appendix B. Interview Guide Mariano Marcos State University College of Arts and Sciences DEPARTMENT OF COMPUTER SCIENCE Batac, Ilocos Norte 2906 Interview Guide A. Introduction 1. Rationale 2. Significance B. Interview Proper 1. How is your Payroll System working? 2. How many employees do you have? 3. How do you process your Payroll System? 4. How do the employees submits their DTR? 5. How do you compute the salary of your employees? 6. How do you distribute the salary of your employees? Manual? Or through ATM accounts? 7.

If through ATM accounts, how do you issue official receipt of the salary? 8. What reports are to be generated? 9. What are the problems that you encounter? 10. How do you handle these problems? 11. Do you want to have a new Payroll System? C. Parting Notes Appendix C. Interview Script. Interviewer: Good morning Ma’am! How are you? Interviewee: Good morning too. I’m fine. Have a seat. Interviewer: We are from MMSU taking up BS in Computer Science and we are here Ma’am to conduct an interview regarding to your Payroll system here in Badoc. How is your Payroll System Working Ma’am? Interviewee:

Interviewer: How many Employee’s do you have Ma’am? Interviewee: More than 200 I think. Interviewer: How do you process your Payroll System Ma’am? Interviewee: The first process is submitting their DTR and already signed by the head of the office. Then it will approved by the Mayor and after that it will give to the treasury. Interviewer: How do you compute the salary of your Employee Ma’am? Interviewee: we compute it through MS excel. Interviewer: How do you distribute their salary Ma’am? Manual? or through ATM accounts? Interviewee: Manual. Interviewer: What reports to be generated Ma’am?

Interviewee: Journal will be generated. Interviewer: What are the problems that you encounter Ma’am? Interviewee: The problem that we usually encounter is delaying in submitting their DTR and sometimes we encounter wrong computation of the salary of the employee. Interviewer: How do you manage this problem Ma’am? Interviewee: Sometimes we were the one who will just sign it and in computation we’ll just compute it again. Interviewer: Do you want to have a new Payroll System Ma’am? Interviewee: Of course, we want to have a new Payroll system. Interviewer: Thank you Ma’am for your time. God Bless. Appendix D.

Ishikawa Diagram Appendix E. Context Diagram. Figure 3. Context Diagram. This figure shows the flow of data, the actors and the activities happening in the system. The process of this first, the employee will retrieve his DTR to the personnel officer after retrieving the personnel will summarize it manually. Second, the personnel will officer will pass the summarized DTR to the accounting. Third, the accounting will compute the salary of the said employee. After the computation, the accounting will pass the journal or the computed salary to the cashier. Fourth, the cashier will issue a pay slip for the employee.

Also if there’s a notice of salary adjustment the personnel will give an update to the accounting. Appendix F. Use Case Diagram. This use case diagram shows which actors interact with each process. In this diagram, we have five elements the actors that will use the system, the system itself, the processes and the lines that represents the relationships between the elements. The first process is retrieving DTR and the person that involve in this process is the employee who will be retrieving his/her DTR. Second process is summarizing DTR and the personnel is the only actor here who will do the process.

Third process is updating salary and the personnel is the one in charge in giving an update. Appendix G. Use Case Description. Figure 5. 1- Use Case Description (Retrieve DTR) Figure 5. 2. Use case Description (Summarize DTR) Figure 5. 3. Use case Description (Update Salary) Figure 5. 4. Use case Description (Compute Salary) Figure 5. 5. Use case Description (Distribute Salary) Appendix H. Class Relationship Diagram. Figure 6. Class Relationship Diagram Appendix I. Expanded Data Dictionary. Figure 7. 1. Expanded Data Dictionary(DTR). Figure 7. 2. Expanded Data Dictionary(summarize DTR). Figure 7. 3.

Expanded Data Dictionary(Journal). Figure 7. 4. Expanded Data Dictionary(Pay Slip). Figure 7. 5. Expanded Data Dictionary(Employee record). Appendix J. User Interface. Figure 8. 1. User interface (log in/out). This user interface allows the employee to enter his/her employee ID and password to retrieve his DTR Read/ input employee ID Read/ input password If employee ID and password not found in the database Then display “Employee ID and password not found” and go back to the previous page Else Display the DTR. Figure 8. 2. User interface (DTR). This user interface displays the DTR of the employee

To print it click print button. To enter the summary of the DTR click summarize button Then it displays the summarize section. Figure 8. 3. User interface (summarizing). This user interface allows the personnel to enter the summary of the employee DTR. Read/input date Read/input month Read input employee ID Read/input employee name Read/input department Read/input position Read/input regular days Read/ input no. of days present Read/ input no. of days absent Read/ input no. of days leave Read/ input no. of days late For the computation of the employee salary click compute button.

Then it display the journal with the computed salary. Figure 8. 4. User interface (Journal). This user interface display the journal which contains the summary of all employees salary. To see the pay slip of a particular employee Check the check button then click pay slip Then it display the pay slip. Figure 8. 5. User interface (Pay slip). This user interface display the pay slip of the said employee To print it click print button Else click back button and it goes back in the f Figure 8. 4. User interface (E-record). This user interface display the employee records Appendix K. Decision Table. Appendix L. Gantt Chart.

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