Chapter 1

Introduction

The Computer nowadays is basic needs for business or companies. It helps a lot

in such way that it makes work more progressive and productive. Through the

advancement of modern technology, there are a lot of fast and reliable alternatives for

work. It is more 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 program it 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.

The time record must contain a certification statement attesting to the accuracy

of the record, which must be signed by the employees. The time record of attendance

must show actual hours worked. This include all hours worked beyond the basic

workweek for both overtime eligible and overtime ineligible employees. Since

supervisors are required to certify the actual hours worked by both overtime eligible

and overtime ineligible employees, supervisor must monitor the actual hours worked by

these employees.

Payroll System is a computerize medium of gathering data, this is the time taken

to achieve a given daily objective task. The time will vary with given task and can range

from house related tasks to work related task.

1|Payroll System
 It is method of logging and organizing time information. It can be used for work

project, bus schedules or school schedules. Payroll System completely replaces hand

written and attendance records. It is a computer based on clock and time keeping

solutions that record and monitor employee’s log in/out times by means of computer

system.

Payroll System plays major role in the business/company thus; it gives

computerized and ready to use data instantly. The process of Payroll System is easy and

it may lead to accurate recording of payroll information. This proposed system describe

in this document should be implemented also in different companies and all automated

system must follow the standard procedures.

2|Payroll System
 Project Context

This Payroll System focuses on the need to design a system that will

automatically arrange the record and calculates the average attendance of each

employee. A well-conceived and implemented Payroll System can reduce the costs of

handling the paper works associated with record keeping.

Purpose and Description of the Project

Purpose of the Project

The purpose of Payroll System is to record employee’s attendance at a particular

time, which is essential in paying workers at an hourly rate. Traditionally Payroll System

allowed the employee to time-in or time-out of work by punching or stamping a card

inserted into a machine. This recorded the relevant time in/out information as they

arrived and left work.

Description of the Project

This Payroll System is also a user friendly environment that would ensure both

quality and easy manipulation. This system is developed to provide accurate and safe

computation of data being gathered through each employee JCF Auto Supplies

Marketing to provide the proper time management to the administration, to lessen the

expenses of the company and to monitor the attendance of the employees.

3|Payroll System
 Objectives of the Project

General Objectives

The sole of this study is to provide quality and genuine service involving the

employee’s personal information to create a system that is called Payroll System. It may

solve related issues according to the data gathered from work.

Specific Objectives

 Develop a system that will improve the process in the time based Payroll

Recording System by using Barcode Scanner.

 Develop a system that will monitor the employee’s daily attendance, a system

that is more efficient to use.

Scope and Limitation of the Project

The scope of the study focuses on attendance processing that will provide

management of the daily time record, computation of total duty hour, absences,

overtime and late. The amount data of this system will be used as reference in

creating a payroll. In addition, the system will provide total security of data,

monitoring of the employees reports, and evaluating each employee based on

the data shown in their records.

4|Payroll System
 Significance of the Project

This system could contribute to the better and brighter way of processing the Payroll by

providing accurate and stable data gathering through its secure and precise processes.

This system may bring some benefits to the following individuals:

User – easy for them to know the different deductions on their salary, to know

their over time or under time. Providing them a security on their time of worked and

computed equally the total of their works.

Employees – payroll system can ease in finding their time in/out instead of

scanning the logbooks and to have a better service for them and less error for their

payroll.

Company – the company could benefit to this system because it’s fast and

accurate process and will result to reducing their discomfort of preparing employee’s

salary. To lessen their paper works that can cause the delay of giving a salary.

Researchers – it gives us knowledge how the project is important in the world of

business. It gives us lesson to give importance in our work.

Future Researchers – the study enhances the knowledge of users in the

advancement of technology this study will provide contribution for educational

purposes.

5|Payroll System
 Chapter 2

RRL / Review Related Literature

This chapter discusses about the theoretical background, related literature and

related studies. This study gives an idea to the researchers in order to have a better

understanding to the proposed system. This also serves as a guide to help improve the

proposed system.

Theoretical Background

Payroll System, in the broadest sense, involves the computation of the

employee’s salary in a faster way. It is mostly integrated with the Information System to

automatically generate the necessary data needed by the Human Resource Department.

Large companies are using this kind of system, since computer is known for its powerful

and complex computation. Errors would be minimized in integrating a system like this.

In this chapter, the proponents will be presenting a brief review of related literature and

studies, both local and foreign that is related to these studies.

Related Literature

International / Foreign

Tanzania’s Government Payroll System

According to Kenan Kalagho writer of Business Weeks in Dar Es Salaam, Tanzania

the Payroll System saves Tanzania’s Government $927 Million. The government is

6|Payroll System
currently saving some $927 million (Tsh1.5 billion) after introducing a new payroll

system.

Speaking in Dar es Salaam last week, the Assistant Director in the President’s

Office, Public Service Management Peter Mushi said: “We have been able to solve to a

larger extent the issue of ghost workers where the government was losing a lot of

monies in salary,” Mushi said. He said the new system allows managers to monitor any

changes that have been made on an individual’s information. Most countries in the

region are battling with the issue of ghost workers which has been costing governments

dearly.

Mushi said the money saved is being used for other government development

projects. The system has helped the government to eliminate and save cash in terms of

salaries to some 34, 645 public servants from government payroll who were either

already retirees’ or were already demised but had their monthly salaries updates in the

former system.

“The government has been losing lot of monies due to few dishonest workers

who were taking advantages of others by enriching themselves through the accounts of

the retirees and dead workers,” Mushi said.

The Information and Communication Telecommunication (ICTT) infrastructure

that has been improved in the country in the recent years has helped to a larger extent

to make sure that personal data information is easily accessed at the central point

thereby minimizing fraud that might be associated tampering with one’s account. He

said the government did recruitment of some 16,000 teachers early this year and

7|Payroll System
entering all of them on the government payroll system has reduced fast tracked access

to information from the newly employers than if government officers were to bring the

files at the head offices in Dar es Salaam.

According to Priscus Kiwango, the Director of Information Resource

Management in the Presidents’ Office, Public Service Management a number of

government offices at the districts level were already using the new payroll system using

the National Information Communication Technology Broadband Backbone (NICTBB).

He said there has been a lot of new development in most of government offices

including access to internet resulting from the mushrooming of mobile operators in the

country and thus lessening the time to enroll a new employee with the government

payroll which currently serves only 478,000 public servants.

This also means that the newly introduced system will mean that most

government workers who have been enrolled with the system will be able to get their

salaries on time upon being employed.

Source:http://www.wavuti.com/4post/post/2013/08/new-payroll-system-saves-

tanzanias-government-927-million.html#axzz2dSpjemG4

National Aeronautics and Space Administration (NASA) Personnel and Payroll Systems

As cited by the proponents on the website of NASA their personnel and payroll

system maintains information on present and former NASA employees. The data

contained in their system of records includes payroll, employee leave, insurance, labor

and human resource distribution and overtime information.

8|Payroll System
 The following are routines used to maintained the system including the

categories of users and the purpose of such routines: (1) To furnish to a third party a

verification of an employee's status upon written request of the employee; (2) to

facilitate the verification of employee contributions and insurance data with carriers and

collection agents; (3) to report to the Office of Personnel Management (a) withholdings

of premiums for life insurance, health benefits, and retirements, and (b) separated

employees subject to retirement; (4) to furnish the U.S. Treasury magnetic tape reports

and/or electronic files on net pay, net savings allotments and bond transmittal

pertaining to each employee; (5) to provide the Internal Revenue Service with details of

wages taxable under the Federal Insurance Contributions Act and to furnish a magnetic

tape listing on Federal tax withholdings; (6) to furnish various financial institutions

itemized listings of employee's pay and savings allotments transmitted to the

institutions in accordance with employee requests; (7) to provide various Federal, State,

and local taxing authorities itemized listings of withholdings for individual income taxes;

(8) to respond to requests for State employment security agencies and the U.S.

Department of Labor for employment, wage, and separation data on former employees

for the purpose of determining eligibility for unemployment compensation; (9) to report

to various Combined Federal Campaign offices total contributions withheld from

employee wages; (10) to furnish leave balances and activity to the Office of Personnel

Management upon request; (11) to furnish data to labor organizations in accordance

with negotiated agreements; (12) to furnish pay data to the Department of State for

certain NASA employees located outside the United States; (13) to furnish data to a

9|Payroll System
consumer reporting agency or bureau, private collection contractor or debt collection

center in accordance with section 3711 of Title 31 of the United States Code; (14) to

forward delinquent debts, and all relevant information related thereto, to the U.S.

Department of Treasury, for collection; (15) to the Office of Child Support Enforcement,

Administration for Children and Families, Department of Health and Human Services,

National Directory of New Hires, part of the Federal Parent Locator Service (FPLS) and

the Federal Tax Offset System, DHHS/OCSE No. 09-90-0074, for the purpose of locating

individuals to establish paternity, establishing and modifying orders of child support,

identifying sources of income, and for other child support enforcement actions as

required by the Personal Responsibility and Work Opportunity Reconciliation act (Pub. L.

104-193).

According to the website of NASA records in their personnel and payroll system

are maintained as hard-copy documents and on electronic media and retrieved from the

system by the individual's name and/or Social Security Number. The website indicates

also that the records are protected in accordance with the requirements and

procedures which appear in the NASA regulations at 14 CFR 1212.605, utilizing locked

file cabinets and/or secured rooms. The retention and disposal of the records are

maintained in agency files and transferred to the National Personnel Records Center

(NPRC) within 3 years of creation in accordance with NASA Records Retention

Schedules. Records transferred to NPRC will be destroyed when 10 years old by NPRC.

Source: http://www.nasa.gov/privacy/nasa_sorn_10NPPS.html

10 | P a y r o l l S y s t e m
Federal Personnel Payroll System

The Federal Personnel Payroll System is used by the United States Department of

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

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

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

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

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

maintain records electronically. FPPS handles all current regulations including

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

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

database technology, fourth-generation language, structured development

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

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

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

automation support within its core, including requirements prescribed by client

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

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

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

11 | P a y r o l l S y s t e m
Maintenance, and Pay Maintenance commands for Federal employees and Emergency

Workers (Casuals).

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

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

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

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

updates and maintenance. Many of these tables are on-line for customer use. FPPS also

offers all required electronic interfaces with the U.S. Treasury, OPM, National Finance

Center (NFC), and various accounting systems. The system offers extensive data

warehousing capabilities.

FPPS fulfills the requirements and specifications established by the Paperwork

Reduction Act, the President's Council on Management Improvement for Federal

Automated systems, Government Accounting Office (GAO), Office of Management and

Budget (OMB), Office of Personnel Management Federal Shared Service Center

requirements and the Financial Systems Integration Office. It also satisfies initiatives of

the National Partnership for Reinventing Government.

In addition, two web-based Time and Attendance Input Systems are offered to

customers: Quick time and web time attendance. They offer automated routing,

certification, extensive on line editing, and security controls.

The Department of the Interior's Interior Business Center stated that the FPPS

generates personnel and payroll outputs that simplify workflow, including: (1)

Personnel, Position, and Payroll actions (2) Time capture records (3) On-line

12 | P a y r o l l S y s t e m
management information system (4) Security administration (5) Debt collection(6) On-

line views (7) Retirement (8) Payroll accounting (9) External reporting (i.e., Treasury,

OPM, OMB, NFC, & tax authorities)

Source: http://www.doi.gov/ibc/services/hr/fpps.cfm#

Solomon Island Ministry of Finance and Treasury Payroll

The Ministry of Finance and Treasury of Solomon Island is the branch that is

responsible for payroll services to all Solomon Island Government (SIG) employees it is

also responsible for revenue collection of all SIG revenue and ensuring the provision of

imprest advances to government employees for the smooth administration of

government expenditure.

Ministry services include statistics and economic management to support

Government decision making processes and the implementation of good governance

practice. The core tasks of the Ministry include financial reporting, revenue collection,

border protection, government payments, preparing and managing the annual recurrent

budget and advising the Government on a range of financial policies including economic

reforms.

The mission of the Ministry is to provide leadership to the Solomon Islands

community in financial matters and the delivery of high quality, professional financial

and economic services to the Minister for Finance and Treasury, the Government, and

other Ministries and the wider community.

13 | P a y r o l l S y s t e m
 As the proponents cited on the website of Solomon Island Government the

Payroll Section is responsible for processing the payroll for all employees of the

Solomon Islands Government. The current payroll system processes wages and salary

payment for the government’s employees over several different payrolls.

It is also stated that any changes to payroll are advised by the Ministries with the

use of a Salary Authority form. The Salary Authority form is filled out by administrative

officers at the various Ministries to make any changes to fortnightly payrolls including

new commencements to the payroll. Documents supporting changes to the payroll are

attached to the Salary Authority form.

Source: http://www.mof.gov.sb/AboutUs/TreasuryUnit/Payroll.aspx

The New South Wales Department of Trade Payroll System

According to the article “NSW government gloats at successful payroll

implementation” by Josh Taylor (August 19, 2013 -- 21:25 GMT (05:25 SGT)) that the

New South Wales Department of Trade and Investment, Regional Infrastructure and

Services has entered stage two of its AU$14.5 million rollout for human resources,

finance and payroll system, gloating that the payroll functions were delivered on-time

and on-budget, unlike the Queensland Health payroll debacle.

The department announced in July 2012 that it would be consolidating the

legacy ERP systems from 16 agencies and 8,500 employees to a cloud platform using

Business By Design. In Budget Estimates yesterday, Deputy Premier Andrew Stoner

14 | P a y r o l l S y s t e m
described the project as "the largest cloud-based program undertaken anywhere in the

world" and had been viewed as a good example by other agencies in the government.

Stage one of the project saw the main department go live with the new finance system

in December 2012, with the payroll system brought on in March this year. The

department's director general Mark Paterson told the estimates hearing that the

implementation had been "very successful" so far, and had performed much better than

the Queensland Health payroll debacle.

"It will provide a pay-back inside 12-months from the investment that was made in

undertaking this activity. I point out by contrast if you wanted to compare it, when

Queensland Health sought to replace their payroll system at a cost of $4 million it took

four years and $1.2 billion," he said.

"We paid everybody on time and correctly in the first live payroll run that we went on

when we rolled out the new system. By any benchmark it has been successfully

implemented."

Paterson said that moving to a cloud service required a change in the way the

department completed tasks, but the decision had been a very cost-effective one.

"I would stand ready to respond to any particular issues that anybody had in relation to

it. It was, without question, the most cost-effective, most efficient choice that we could

have made to deliver those services and it has been done extremely cost effectively with

high levels of security and certainty," he said.

15 | P a y r o l l S y s t e m
Despite the praise for the new system, there have been teething issues in relation to

invoices for services provided to the department not including purchase orders as

required under the new system.

"One of the issues that arose as part of the transition to the new enterprise resource

planning process is that the system requires purchase orders to be part and parcel of an

approval mechanism inside the Business ByDesign solution. If a purchase order has not

been issued then the business will not be able to submit an appropriately compliant

invoice," Paterson said.

"We have had to work through some of those issues when people have submitted

invoices without reference to the appropriate purchase order. We have had to ensure

that those submitting invoices identify the nature of the purchase or the service or

goods provided and the purchase order that was issued."

Consulting Networks confirmed to ZDNet that it was responsible for the department's

successful migration to the new payroll system, which it says is hosted locally within the

Consulting Networks datacentre.

The New South Wales Department of Trade has gloated that its payroll system

rollout has been much more successful so far compared to the botched Queensland

Health payroll system implementation.

Source: http://www.zdnet.com/au/nsw-government-gloats-at-successful-sap- payroll-

implementation-7000019553/

16 | P a y r o l l S y s t e m
 National Literature

Cagayan de Oro City Hall Computerized Payroll System

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

City has introduced an upgraded computerized payroll system for permanent employees

in a bid to improve its services and maximize resources. “This project, which was

conceived two years ago, basically aims to improve our services particularly in the

processing of payrolls for permanent employees”, City Accountant Wilma Polley-Rugay

told payroll in-charge of the different departments and offices at City Hall during a

briefing and orientation on the concept of the one-month payroll system held Friday last

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

the new computerized payroll system, Rugay said the preparation, processing and

payment of payroll system to permanent employees would be hastened and fast-

tracked.

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

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

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

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

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

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

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

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

Source: http://www.sunstar.com.ph/cagayan-de-oro

17 | P a y r o l l S y s t e m
Computerized Payroll System of Department of Health (DOH)

The Computerized Payroll System of Department of Health is a window based

program especially designed to facilitate and simplify the monthly preparation of

general payroll and related reports such as Standard computerized payroll system for

use in all DOH offices. It allows faster and more accurate computation of monthly gross

income, deductions and net salary, less-resource-consuming generation of General

Payroll and other payroll related reports and security and integrity of payroll

data and information. The features of computerized payroll system of DOH are graphical

user interface interactive and menu-driven program, systematic maintenance and

retrieval of employee records.

It is flexible as it provides options to include additional fields for other

compensation and deductions unique to an office or unit and could do automatic

computation of monthly net income, GSIS, PAG-IBIG, Withholding Tax and other

deductions, Y2K compliant, Fast and easy generation of the General Payroll and all other

payroll related reports which include Monthly reports like GSIS and PAG-IBIG

remittances, Denominations Report and Leave Credits Report and annual Year-end Tax

Reports.

18 | P a y r o l l S y s t e m
 It has password security to ensure the integrity of data. General payroll reports

such as Payroll Summary sheet, Pay slip, Leave Credits Report, Withholding Tax

Statement (W-2), BIR Remittance Reports, GSIS Remittance Reports, PAG-IBIG

Remittance Reports, Other User-defined Reports (PERA, ACA, PNB, etc..) could be

generated by this system.

Source: http://www.doh.gov.ph/about.html

Payrolls in Government Agencies go to Digital

According to Philstar.com (July 30, 2013 - 6:28pm) Manila, Philippines -

Government employees soon receive digitized versions of their payroll in a bid to

increase efficiency and transparency in government offices, Department of Budget and

Management (DBM) Secretary Florencio Abad said.

“As a fully automated and digitized system, the NPS (National Payroll System)

will play a central role in ensuring greater efficiency, transparency and accountability in

the government’s human resource processes. And because the system will be

completely electronic, all payroll-related activities will be implemented more quickly

and with better accuracy, whether we’re talking about the distribution of monthly

salaries due to government workers, or the regular monthly remittances that are made

out to our employees’ social security and health insurance accounts,” Abad said.

Under the new system, state agencies will continue to have discretion over their

respective human resource and personnel requirements. This will be expressed in a

Monthly Cash Plan relating to Personnel Services that will be submitted to the Bureau of

Treasury, which will provide a payment file to the proper bank for the timely

19 | P a y r o l l S y s t e m
processing of employee salaries, DBM said. The government agencies are tasked to

create Automated Teller Machine payroll accounts for their employees to allow for the

electronic distribution of monthly salaries.

“It is, very simply, a matter of government finally keeping up with the times,

where we do away with an outdated and grossly inefficient approach to personnel

compensation in favor of an electronic payroll system that makes every transaction

quick, verifiable, and transparent,” Abad said.

Source: http://www.philstar.com/headlines/2013/07/30/1031681/payrolls-govt-

agencies-go-digital

Treasury to Handle Payroll of All Government

According to Philippine Daily Inquirer published on July 25, 2011 the Bureau of

the Treasury will gradually take over the payroll of all government agencies in a bid to

address existing inefficiencies such as failure of some entities to remit pension-fund

contributions of state workers.

National Treasurer Roberto Tan said concerned economic officials have agreed

to transfer the payroll systems of all line agencies under the Treasury over a three- to

five-year period. Tan said the assumption by the Treasury of the payroll of government

agencies was part of the reform road map being established by the economic team.

“Centralization will be a more efficient way of doing the payroll,” Tan told

reporters in a briefing after the auctions for treasury bills. When asked if the plan had to

20 | P a y r o l l S y s t e m
do with problems related to remittance of pension-fund contributions, Tan said

transferring the payroll under the Treasury’s management would address these

problems.

The Government Service Insurance System (GSIS) said 25,454 of its members

were temporarily ineligible to avail themselves of loans and cash dividends because

their contributions to the state pension fund had not been remitted by their

government agency-employers. These agencies, totaling 287, have been suspended by

the GSIS. The pension fund manager said a government agency would be suspended if it

failed to remit contributions at least 60 days from due dates.

“Suspended agencies can enter into a memorandum of agreement with the GSIS

to settle their outstanding obligations. Once this is done, the suspension will be lifted

and their employees can avail themselves of GSIS service loans,” GSIS president and

general manager Robert Vergara said. Vergara noted, however, that agencies under a

memorandum of agreement with GSIS would be suspended again if the required

amortization is not received by the GSIS within one month.

The pension fund manager also said that heads of delinquent government

agencies could face administrative charges for the delays in the remittance of

contributions.

Source: http://business.inquirer.net/8803/treasury-to-handle-payroll-of-

all-government-agencies

21 | P a y r o l l S y s t e m
 Local

22 | P a y r o l l S y s t e m
 Related Studies

International / Foreign

HP masterminds complex new payroll data infrastructure

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

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

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

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

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

This large and complex solution was successfully implemented by HP Enterprise

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

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

departments.

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

policing system, replacing the former Gendarmerie, Criminal Investigation Department

and Municipal Police with a unified force. This integrated police service employs 48,000

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

autonomously but share common services.

Following the integration, payroll continued to be run via outdated applications

on inefficient hardware. These were unpopular with the various local divisions who felt

that there was not enough visibility of payroll data. The government therefore decided

23 | P a y r o l l S y s t e m
that payroll for the entire force should be centrally administered by the Secretariat of

the Belgian Integrated Police (SSGPI), an autonomous service reporting to the Ministry

of the Interior.

Source: http://h20195.www2.hp.com/v2/GetPDF.aspx%2F4AA3-9302ENW.pdf

Payroll and Benefits System in Japan

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

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

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

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

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

additional health care benefits.

Employee National tax liability is calculated by the company and deducted

monthly from the salary. Employee Residential tax liability (local tax or state tax is

calculated by the ward office of the residence of the employee).

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

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

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

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

Source: http://www.japanconsult.com/japan-company-guidebook-faq/payroll-in-japan/

24 | P a y r o l l S y s t e m
Queensland begins planning new Health Payroll System

According to Paris Cowan the Queensland Government has accepted all four

recommendations of the commission of inquiry into the failed Queensland Health

payroll replacement and is already “well on track” to see them implemented.

One of those recommendations calls upon the state to immediately commence

planning for the replacement of the $1.2 billion IBM-built system, itself a replacement

for the LATTICE system the Department had previously relied upon. The report of the

inquiry, lead by Richard Chesterman, found “the current QH payroll system will require

an upgrade in about a year and replacement within 5 years”. This means that work will

take place alongside the remediation of the current system, which has been funded out

to 2016-17.

Minister for Science, IT, Innovation and the Arts (DSITIA) Ian Walker confirmed to

parliament this morning that a Queensland Health payroll planning group would be

established, chaired by the Queensland Health Director-General, to begin this process.

The group will also feature representatives of Mater Misericordiae Health Services,

whose successful payroll replacement was singled out by the commission of inquiry as a

model that Queensland Health would do well to follow.

It cited the ICT Audit’s revelation that 40 per cent of the Queensland

Government’s significant applications are either past their due date for replacement, or

will be within the next two years, but for more than 50 percent, no consideration had

been given a replacement process. Inside DSITIA work has already begun work to list

25 | P a y r o l l S y s t e m
and document the lessons learnt during the payroll saga. It aims to release a report to

agencies by 15 September to inform their IT planning.

The government also hopes that a new project approval framework, introduced

by the whole-of-government ICT Strategy in July, will plug some of the accountability

gaps that allowed the Health project to go off the rails. New requirements include

ministerial sign-off for high-risk projects and gateway reviews designed to identify and

halt troubled implementations early.

These accountability measures pre-empted the third recommendation of the

report, but don’t fully address Chesterman’s less formal suggestion that specialist

project managers be appointed to every large IT procurement or implementation.

Source: http://www.itnews.com.au/Author/635342,paris-cowan.aspx

Clark Payroll System will save Time and Money

According to the article “Clark Payroll System will save Time and Money” written

by Michael Cooper of springfield news that the auditor of the Clark country said that

the new accounting and payroll systems of the county will be more efficient, replacing

some work done by hand and save taxpayers money. The systems could cost $1 million

to $1.5 million, but bids recame back lower than expected. Officials want to have the

systems ready sometime next year, Federer said. “It’s going to save lot money,” Federer

said.

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 Federer said the county government currently includes paper-based systems.

Some departments are still handwriting payroll sheets and purchase transactions, and in

some instances data is being entered four different times. They’re currently inputting

payroll for 1,200 employees every two weeks using paper time sheets. “It’s not efficient

and it’s not effective,” Federer said.

The current method is not compatible with any type of modern software, such as

Microsoft Windows. The system is also on a non-standard server that doesn’t even have

parts available if they need to be replaced, said county administrator Nathan Kennedy.

“If the server goes down, so does our software,” Kennedy said. “If that happens, we’re

handwriting checks … It obviously needs to be replaced.”

The new system will provide processes for accounting, payroll and accounts

payable. The system will work with the county government as well as other agencies

such as the Dept. of Jobs and Family Services, the Transportation Coordination

Committee, Mental Health and Recovery Board and even the West Central Corrections

Facility in Marysville.

Federer said departments and agencies often come to the office physically pay

bills. The new system will make the process much easier. “You won’t have people

driving down here,” Federer said.

Developmental Disabilities of Clark County comptroller Ravi Shankar said the

system needs to be revamped. Shankar said payroll is done in-house at their office, but

the same information is being entered at the auditor’s office.

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“It’s a lot of duplication,” Shankar said.

Federer is partnering with agencies that will use the software such as

Developmental Disabilities of Clark County, the county sheriff, treasurer and Community

Development department, among others, to decide how the software can best be

implemented.

“I want to make sure that what we buy satisfies them, too,” Federer said. “We’ve

developed partnerships that have never existed before like they have today.” The

agencies also use different systems that have to mesh with other systems. “We have to

be real sensitive that our system will talk to their system,” Federer said. Shankar said

there will be a learning curve and training will be required for all the agencies involved,

but it’s “the right time to move on” from the old system.

County officials are expecting the project to cost upwards of $1 million. The

initial bids will be analyzed to make sure they’re complete, according to county

administrator Nathan Kennedy. “If they are complete, these are real good bids,”

Kennedy said. “We were anticipating something far, far higher.”

Federer believes the bids did not include important details, such as hardware. He

expects the system to cost more than the bids discussed at the commission meeting.

Kennedy said 12 vendors asked for a copy of the request for proposals, but only two

returned bid packages. County Commissioner Rick Lohnes said the auditor’s office

performs tasks for all local agencies, including township governments and others —

28 | P a y r o l l S y s t e m
making the system important for the entire county. “Everybody has to go through the

auditor,” Lohnes said. “It’s going to take training, but it’s going to be a good system.”

Source: http://www.springfieldnewssun.com/news/news/local/clark-payroll-system-

will-save-time-money/nZfdT/

Titus Information Payroll System

A Payroll System designed to produce payroll checks with appropriate

withholdings, benefits, allowances, and deductions for employees in multiple

companies, departments, and/or sub-departments. It has been designed to handle up to

1,000,000 employees in 100 companies, 1,000 departments in each company, and 36

sub-departments in each department.

Some of the features and benefits of the Payroll System are multiple cost centers

for payroll reporting, will handle special non-taxable benefits for ministers, flexible

withholding capability, ability to split payroll expense between different cost centers,

complete governmental reporting; FICA, FUTA, SUTA, Workman's Compensation, W-2's,

and 1099's, Payroll check reversal, One check capability, Salaried, hourly, and contract

employees in the same payroll run, Combined processing for weekly, bi-weekly, semi-

monthly, or monthly, Taxable and non-taxable benefits and deductions, Multiple hourly

rates for each employee, General ledger interface, Check list UFD file for check

reconciliation, Extensive personnel information for each employee, Accrual of sick,

29 | P a y r o l l S y s t e m
vacation, and holiday hours, Flexible federal, state, and local taxation, Multiple

company, department, and sub-department capability, Flexible benefit and deduction

capability, Easy federal, state, and local tax table maintenance, Split income over

multiple companies, departments, sub-departments, Payroll accrual/reversal

capabilities, Time card data entry function, Special message function for printing on

check stubs.

Source: http://www.titusinformationsystems.com

Payroll System with Daily Time Record Using Bio-Metric Authentication

According to the article of Ms. Felice Grazille M. Adlaon, the aim of this project is

to identify and solve the problems concerning the Payroll and Daily Time Record System

of DBA enterprise – a fast growing company which caters direct selling of AVON

products throughout Mindanao. The company experiences some concerns on

monitoring the attendances of their employees and the computation of the payroll of

each employee.

The traditional payroll and daily time record system could no longer cope with

the number of branches they have all over Mindanao. Through the analysis made by the

proponents, it has been found that Payroll System with Daily Time Record using

Biometric Authentication may solve the current problems of the company.

The study covered the cost of the proposed system, its operational functions, its

benefits and its impact towards the company. The project was completed within the

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time span of three semesters (Academic Years 2008-2009 to 2009-2010). After the

testing and evaluation, it was concluded that the automated Payroll System with Daily

Time Record is really beneficial to the company.

The system facilitates the generation of payroll and monitoring of attendances in

a cheaper, easier and faster way. It could reduce failure of reporting and analysis, and

could provide timely and accurate reliability/quality reports.

Source:http://ejournals.ph/index.php?journal=CLOUD&page=article&op=view&path%5

B%5D=6628

31 | P a y r o l l S y s t e m
 Chapter 3

TECHNICAL BACKROUND

Technicality of the Project

JFC Auto Supplies Trading is using the traditional manner of their payroll. This

study merely focuses on developing Payroll System for them to have easy transactions

of their payroll. The gathered data shall be crucial components in developing the

proposed system. The Payroll System can view the time in / out of the employees, can

monitor the absences and the deductions will be deducted automatically.

Barcode – to detect the time in/out of the employee’s.

Details of technology to be used

The minimum system requirements of the proposed system in order to make it

functional:

Hardware:

Monitor – ɅOC

Mouse – Microsoft (IntelliMouse, Optical USB and PS/2 Compatible

Keyboard – Genius

Motherboard - Apple

32 | P a y r o l l S y s t e m
Operating System:

Windows: Windows 7 Ultimate (Copyright © 2009 Microsoft Corporation

System: Rating: 4.6 Windows Experience Index

Processor: Intel (R) Core (TM) i3 – 3220 CPU @ 3.30 GHz 3.30 GHz

Installed Memory (RAM): 4.00 GB

System Type: 64 – bit Operating System

Printer:

How the Project will works

When Payroll System is made, the transaction is processed and all databases are

updated immediately. This type of processing is absolutely essential that requires data

quickly and update it often.

The Payroll System will enhance the payroll process of JFC Auto Supplies Trading.

The system will be run _________________help the system to store large amount of

data needed.

33 | P a y r o l l S y s t e m
 Chapter 4

METHODOLOGY

Environment / Locale

JFC Auto Supplies Trading, which is located at Surallah, South Cotabato, is owned

by Mr. Julius A. Sevilla and manage by Mr. Sohrab D. Tanjili.

34 | P a y r o l l S y s t e m
 JFC AUTO SUPPLIES TRADING

Organizational Chart / Profile

JULIUS A. SEVILLA
PROPREITOR

SOHRAB D. TANJILI
OPERATION MANAGER

ALBERT T. CASTILLO ABRAHAM A. LADUANA

CHIEF MECHANIC CASHIER / ENCODER

JADE DOMENIC F. SABATE RAYMUND M. FLANG

ASSISTANT MECHANIC - II ASSISTANT MECHANIC - I

JEFFREY A. DIOSANTA JOAN B. AMUENDA

PARTSMAN - II PARTSMAN - I

Figure1. Organizational Chart / Profile

35 | P a y r o l l S y s t e m
 Requirements Specification

Below are the lists of software and hardware specification.

Software Requirements Specification

 Microsoft SQL Server 2005/ MS Access

 Telerik (RadControls for WinForms Q2 2012 SP2)

 Microsoft Visual Studio 2010

 .NET framework 4.5

Hardware Requirements Specification

 Processor : Minimum requirement (any)

 RAM: at least 1GB

 Hard Disk: at least 500GB

 Monitor: (any)

36 | P a y r o l l S y s t e m
 Operational Feasibility

The Payroll System which is intended to JFC Auto Supplies Trading is based on

the researcher’s assumption. The new system be convenient for the company and it will

solve the existing payroll. Having this system eliminates loss of an older payroll, ability of

this system keeping track of payroll history, for the assigned person who preparing the

payroll it will give his / her more convenient and it will easy to give the salary of their

employees. If the management supports this system, the implementation of the

proposed system will be easier.

Therefore, it is feasible to implement Payroll System as it can solve the (relate to

the questions to the company). The whole purpose of this system is to handle the work

much more accurately and efficiently.

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 Fishbone Diagram

38 | P a y r o l l S y s t e m
 Functional Decomposition Diagram

39 | P a y r o l l S y s t e m
 Technical Feasibility

Reserving hotels is the latest technology spreading through the world to fulfill the

needed ones. With this, the hotel management works hard to develop and implement

hotel reservation system. The tendency of the proposed system can reduce the chances

of error and development risk that conducting by the company. Besides, proposed

system can reduce company cost as it system don’t need more human resources, it is

because customers do it manually through online reservation as all the details are

provided.

The use of Wamp Server as the back end is a big help, for it has a capacity to

store large amount of information and is user friendly compared to any other databases.

Furthermore, the system is flexible to support enhancement and upgrade.

40 | P a y r o l l S y s t e m
 Compatibility Checking (hardware / software and other technologies)

41 | P a y r o l l S y s t e m
 Schedule Feasibility

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 Economic Feasibility

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 Cost and Benefits Analysis

1. Computer set (2) - Php 60,000.00

2. LAN - Php 8,000.00

3. Printer (1) - Php 5,000.00

4. Office Supplies - Php 10,000.00

TOTAL - Php 83,000.00

44 | P a y r o l l S y s t e m
 Cost Recovery Scheme

45 | P a y r o l l S y s t e m
 Requirements Modeling

Context Diagram

Data Flow Diagram

System Flowchart

Proposed

Manual

Risk Assessment and Analysis

Design

Output and User Interface Diagram

Data Design

Entity Relationship Diagram

Data Dictionary

System Architecture

Network Model

Network Topology

Security

46 | P a y r o l l S y s t e m
Development

Program Specification

Programming Environment

Test Plan

Test Data

Unit Testing

Integration Testing

Compatibility Checking

Performance Testing

Stress Testing

Acceptance Testing

Conclusion

Our proposed system ventures to satisfy the Payroll process of JFC Auto Supplies

Trading. We concluded that this system will truly beneficial to the business, owner and

to the employees that will open an opportunity to improve the processing of their

payroll.

Recommendation

Based on the conclusion, we recommend that the JFC Auto Supplies Trading consider
the proposed system that we are proposing for them to continue improve the payroll
system of their business and to be more productive and more capable of recording data
in the payroll.

Implementation Plan

47 | P a y r o l l S y s t e m
 Project Implementation Checklist

Chapter 5

Bibliography

APPENDIX

Appendix A – Source Code

Appendix B – Sample Input / Output / Reports

Appendix C – Gantt chart

Appendix D – Grammarians Cert.

Appendix E – PERMISSION LETTER

Appendix F – Curriculum Vitae

Glossary

48 | P a y r o l l S y s t e m
 Chapter 4

METHODOLOGY

Environment / Locale

Organizational Chart / Profile

49 | P a y r o l l S y s t e m
50 | P a y r o l l S y s t e m
51 | P a y r o l l S y s t e m