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Introduction:

Payroll consists of the process by which a business pays its employees for
work performed during a specific period. A payroll system allows businesses to
follow a set series of processes in order to make timely, correct payments in
compliance with government regulations. A payroll system may be manual or
computerized and handled in-house or outsourced to another provider.

The payroll process typically includes calculating employee pay, recording


payroll transactions and determining and paying payroll taxes. A company must
have in place a timekeeping system that accurately reflects the hours put in by
nonexempt employees as well as the regular salary payments for exempt workers.
Employers typically withhold federal income tax from employee earnings; at the
end of the year, they must report all wages, tips and other compensation paid.
Companies also must withhold Social Security and Medicare contributions from
employees' wages and pay a matching amount.

As the student of Information Technology at Saint John Bosco I.A.S., I have


tasked with building a new payroll system to replace the existing system which is
hopelessly out of date. Saint John Bosco I.A.S. needs a new system to allow
teachers and employees to record time card information electronically and
automatically generate paychecks based on the number of hours worked.
CHAPTER l

The problem and its background:

As computer technology changes at such fast phase, many businesses sectors


try to cope up by upgrading computer system constantly in order to stay
competitive. The multi function ability of technology for its advance system is also
an important factor for a company to use software. It makes efficient use of the
advance technology and has ambition to discover more. Computers have the great
impact on the profession of accounting. With the rapid growth of technology
today, there is no doubt that computer will become a common asset in all
profession.

The program also allows the monthly payroll schedule to be calculated


accurately. Just by having all teachers and employees info like name, working
hours, wages etc to enter in the database. Therefore, payroll can be done with the
guide of the program. The system is good in for its specialty in the fields of
accounting. It is easy to use, effective and efficient in organizing and calculating
the payroll. In addition, this study aims to develop a reliable and manageable
computerized payroll system for Saint John Bosco I.A.S. for a better manageable
of a business. The Proposed Computerized Payroll System will give a big relief of
the employee and employers as well.

One of the most requested features of the new system is employee reporting.
Employees will be able to query the system for number of hours worked, totals of
all hours billed to a project (i.e., charge number), remaining vacation time, etc. The
reporting feature will be available either through the desktop or the web interface.
Statement of the Problem:
The old system is outdated and no longer adequately manages the payroll
process and the entry of employee time card information. Therefore, manual
intervention is required to process the payroll.

Hypothesis:
As the student of Information Technology at Saint John Bosco I.A.S., I have
tasked with building a new payroll system to replace the existing system which is
hopelessly out of date. Saint John Bosco I.A.S. needs a new system to allow
teachers and employees to record time card information electronically and
automatically generate paychecks based on the number of hours worked.

Significance of the Study:

To Accounting Department and Payroll Maker of Saint John Bosco I.A.S.

The proposed system will help the accounting section of Saint John Bosco

I.A.S. especially the Payroll maker/bookkeeper and the Finance Officer. It will

help to lessen the time and effort of the payroll maker/bookkeeper preparing

payments of employees. The System develop can accommodate changing figures

and produce a paperless environment through well design database.


To Proponents

This study will help the proponents to enhance the ability on how to create

an understandable computerized system in an easy way. This will serve to the

proponents as a challenge to do a better system.

To the other Researcher

This study gives knowledge to the researcher on how to create a

Computerized System in understandable way. This will serve as a fresh ground for

the researcher whose study will be related in the field of Information Technology.

Scope and Limitation:

Scope

This study is designed to develop a Computerized Payroll System for Saint

John Bosco I.A.S. It covers the process of preparing the Pay slip of each employee,

the regular and job order employee, keeping of records safety and computing the

exact wages of each employee. Including the stored report list of employee such as

Monthly Salary, Basic salary, overtime, Gross payment, Net pay, and Deduction

such as withholding tax, SSS, and Medicare, SSS loan, Advances, Multi-purpose

loan, PAG-IBIG Contribution, CAPELCO loan, Cash Advance, Bond, Energy

Sales, Motorcycle, Canteen, under time, Cigna, WELCA, union loan, Lot/housing

loan, health Care and AR.


The proposed Payroll System for Saint John Bosco I.A.S. is expected to

generate Pay Slip of Employees, Report list of employees, Remittances for

respective agencies, Payroll register of regular and job-order employees, and

Payroll form for every pay period.

Limitation

The proposed Computerized Payroll System for Saint John Bosco I.A.S.

does not support network topology implementation and online program or online

transaction.

Definition of terms:
Payroll System

A payroll system is a computerized technique that is used to calculate the


sum of salaries employees who need to be paid in an organization. The name,
address, Social Security number and the bank account numbers are the key
elements in a payroll system. This method saves time.

Client
A person that can receive services from the employees and agents.

Company
A business enterprise firm.

Employee
A person employed at a wage or salary.

File
A receptacle that keeps loose objects such as papers or any collection of
items.
Record
A d o c u me n t t h a t c o n t a i n s a n a c c o u n t p a r t i c u l a r l y i n terms of
collection.

Services
Non-monetary programs provided by companies that benefits clients.

Automated
T h e c o n v e r s i o n o f t h e p r o c e s s o f a u t o ma t i o n h a s been already
done.

Computer System
The configuration that includes all functional components of computer and its
associated hardware or software.

Database
A n i n t e g r a t e d c o ll e c t i o n o f d a t a wh i c h p r o v i d e s a more
efficient way of storage and retrieval of data and is capable o f processing
large portions of data immediately.

Information
Is data that has been changed into a useful form of output.

Process
A s e r i e s o f a c t i o n s , c h a n g e s , o f f u n c t i o n s t h a t b r i n g about an
end or a result.

Software
A computer terminology use to describe the unseen p r o g r a m m i n g
c o d e s a n d r u n n i n g a p p l i c a t i o n i n s i d e t h e c o m p u t e r system.

System
A s e t o f r e l a t e d c o mp o n e n t s t h a t p r o d u c e s s p e c i f i c results.

Technology
It is the study of practical or industrial arts.
Chapter II

Review of Related Literature:

In less than a generation, computer technology has revolutionized business


all over the world. This has brought about changes in the area of business,
finance, industry, government, agriculture, education, health care, sports and
even on our personal lives. Today, computers do much of the works. Data
collection continues to become easier and easier, data processing is getting faster
and faster, mathematical calculations continue to be performed with increased
precision and information is being provided to users in generally more useful
forms. Such that was made possible through the use of electronic files and
database.

This chapter presents some of the previous related works relevant to the
understanding of the problem. In order to gather information, the authors used
books, thesis and encyclopedia. The wide spread development of digital
technology also results to parallel advance in software, which allows this
technology to be used by persons other than computer experts. The database has
become a central organized framework for information system, taking advantage
of the concept of data independence that allows sharing among diverse system
organized collection of data maintained and used with the aid of management
information system (mis). It is a state of the art information system process and
retrieve information ever faster, they are more robust in terms of the volume of
data that they can process and in terms of reliability; and their performance is
more cost-effective. The central component of information system, the database
may be distributed over a number of processor in different geographic locations,
yet queries can processed simultaneously against the composite database.
Chapter III
Research Method Used:
T h e p r o p o n e n t s h a v e u s e d t h e De s c r i p t i v e R e s e a r c h M e t h o d
wherein the study is focused on present situations. It involves
t h e re cording, description, analysis and the presentation of the present
system, composition or processes of phenomena.

Under the Descriptive Research Method, the technique used is the


Survey Method, which is otherwise known as normative survey. The results and findings
of the study should always be compared with the standards. With the survey
method, researchers are able to statistically s t u d y t h e s p e c i f i c a r e a s
w h e r e t h e p r o p o n e n t s m u s t c o n c e n t r a t e . Findings regarding the
common practices being done and the methods which are commonly adopted by
the employees are obtained with the use of the survey method.

Description of the Respondents: