Jose Rizal University

Mandaluyong City

Payroll Management System

For
Grand Star General Contractor

A Project Study

Presented to the Faculty of Information Technology Department of the

College of Computer Studies and Engineering

In Partial Fulfillment of the Requirements for the Degree

of Bachelor of Science in Information Technology

By
John Lord G. Briton

Jhune Mackevin A. Castillo

Jerodilyn C. Castro
Louraine C. Po

------------------------------------------

Ryan A. Ebardo

July 2019
 CHAPTER 1

INTRODUCTION

1. COMPANY PROFILE

Grand Star General Contractor (GGC) was founded in July 2004 and has shown

history of contracting arm of Gladstone commercial, this is a family business that

engaged in the manufacture and fabrication of steel products and aids to navigation.

they offering a construction consultancy and management services although they are

new Grand Star have an experience to their specific field of expertise ranging in civil

engineering, electronic communications and architectural designs. The company is

to undertake projects such are fabrications and installation of telecommunication

towers, ports and harbors, building and road constructions, structural steel, and also

civil works and other similar ventures. Their main office is located in Caloocan City.

Engineer Elmer R. Estrella took in charge of the construction company together with

Architect Paul Tristan Joson Operations Manager.

As of this day, their on-going projects are Renovation of the third floor in

Philippine Normal University, Philippine national Bank. And their completed projects are

Security Bank, Sutherland Global Services, Kipling, Philippine Ports Authority, Manila

Water, Department of Labor and Employment.

Grand Star General Contractor is accredited by the Philippine Constructors

Accreditation Board (PCAB).

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 2. MISSION

It is our commitment in services quality and rendering satisfactory service to our

customer and clients.

VISION

Is to become one of the leading suppliers and manufacturers of the navigational

products here and abroad.

3. ORGANIZATIONAL STRUCTURE

Engr. Elmer R. Estrella

President

Gloria R. Estrella Arch. Paul Tristan Joson Antonio D. Ledesma Jr.

Finance Head Operations Manager Account Manager

Jose Y. Dadulla Jr. Engr. Jake Mondares Chuck Vincent L. Tandoc

Accountant Project Engineer Project Engineer

Jeaneth M. Estrella Marissa C. Millan Kristofferson W. Marasigan

Engineer Elmer R.
Treasurer Purchaser Safety Officer

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 Engineer Elmer R. Estrella the one who establishes the grand star general

contractor in July 2004 and he is responsible for being the executive officer of the

corporation and for seeing that the affairs of the corporation is carried out in accordance

with the provisions of the By-Laws. Gloria R. Estrella the finance head responsibility for

their company's financial health. They combine operational and strategic roles, manage

accounting and financial control functions, and establish a financial strategy for the

profitable long-term growth of the business. Architect Paul Tristan Joson is the

operations manager /architect he manages overall operations and is responsible for the

effective and successful management of labor, productivity, quality control and safety

measures as established and set for the safe and efficient operations. Antonio D.

Ledesma Jr is the Accounting Manager, he establishes financial status by developing

and implementing systems for collecting, analyzing, verifying, and reporting financial

information; managing staff. Jose Y. Dadulla Jr. is the accountant, provides financial

information to management by researching and analyzing accounting data; preparing

reports. Engr. Jake Mondares and Chuck Vincent L. Tandoc are both project engineer,

Completes engineering projects by organizing and controlling project elements. Jeaneth

M. Estrella is the treasurer, responsible for corporate liquidity, investments, and risk

management related to the company's financial activities. Marissa C. Millan is the

purchaser, Obtains requirements by verifying, preparing, and forwarding purchase

orders; verifies receipt of items; authorizes payment. Kristofferson W. Marasigan is the

safety officer, he ensures that construction workers are following established policies

and safety regulations.

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 Conference Room

4. OFFICE LAYOUT
Comfort Presidents

Room Office

Engineering

Project Engineer Office

Department

Hallway
Operations Manager Accounting

Department

Pantry
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Staffs
 Gran Star General Contractor (GGC) is 123 Maria Clara Street, 7th Avenue

Caloocan City. It consist of 11 rooms , upon entering the opposite door is the front

desk, then the Engineering Department, Accounting Department, Staff’s room, Project

Engineers room and the pantry.

There is a connecting door through the conference room, and in the middle of the

conference room and the comfort room there is a President’s office.

Operational Terms

Gross Pay - This amount includes the total of the employee's pay calculated before

anything is taken out.

Net Pay - This amount includes employee's gross pay, or total amount, minus all tax

withholdings and deductions.

Time Sheet - A method should be used to track each employee's time for when they

clock in and out of work, for lunch and any personal time off taken during the work day.

This is especially important for hourly employees as their hours worked is used to

calculate their regular pay as well as any overtime.

Regular rate - This is the employee's regular rate of pay or straight pay.

Overtime - If the employee works over an hours, they are paid overtime for the extra

hours.

Contract employees - are responsible for paying their own income taxes at the end of

the year as the employer does not withhold taxes from their pay.

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Regular employees An employee who has been hired for a position without a pre-

determined time limit. A permanent employee differs from a term or temporary

employee, both of which have a pre-determined period of employment.

Pay period is a recurring length of time over which employee pay is recorded and paid.

Some common pay periods are monthly, weekly, bi-weekly (every other week) and

semi-monthly (twice a month).

Tax a compulsory contribution to state revenue, levied by the government on workers'

income and business profits, or added to the cost of some goods, services, and

transactions.

Pay checks a check for salary or wages made out to an employee.

Technical Terms

Data-flow diagram (DFD) is a way of representing a flow of a data of a process or a

system (usually an information system). The DFD also provides information about the

outputs and inputs of each entity and the process itself. A data-flow diagram has no

control flow, there are no decision rules and no loops. Specific operations based on the

data can be represented by a flowchart.

Context Diagram shows the system under consideration as a single high-level process

and then shows the relationship that the system has with other external entities

(systems, organizational groups, external data stores.

Level 0 data flow diagram (DFD), also known as a context diagram, shows a data

system as a whole and emphasizes the way it interacts with external entities.

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Data- is a set of value of qualitative or quantitative variables; restated, data are

individual pieces of information. Data in computing or data processing are represented

in a structure. Data consists of a series of facts or statements that may have been

collected, stored, processed and/or manipulated but have not been organized or placed

into context.

Output Result of computerized payroll system.

System In this study, this term refers to any group as components that is related or

connection with the system.

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 PROCESS NARRATIVE OF PAYROLL MANAGEMENT SYSTEM

Grand Star General Contractor is a contracting arm running for fifteen (15) years

base in the City of Caloocan. As of today the organization is ran by 50 staffs distributed

in three divisions - Operations, Finance and Administration. To implement Payroll

Management System, the management decided to hire the expertise of Grand Star

General Contractor to make a presentation on a possible proposal.

Grand Star General Contractor immediately activated the project team and

initiated several system analysis initiatives. Having been the supervising in the team,

Engineer Elmer R. Estrella summarized the results of the data gathering initiatives with

the assistance of into a process narrative as follows:

Setting Up New Employees – New employees, in the hiring process, must fill out

payroll-specific information. Copies of this information should be set aside in the

payroll department in anticipation of its inclusion in the next payroll.

Collecting Timecard Information – Office staff and managers definitely require no

change in wages paid for each payroll, but an employer must collect and interpret

information about hours worked for nonexempt employees. This may involve having

employees scan a badge through a computerized time clock, punch a card in a

stamp clock, or manually fill out a time sheet.

Verifying Timecard Information – Whatever the type of data collection system

used in the last step, the payroll staff must summarize this information and verify

that employees have recorded the correct amount of time. This, of course, involves

having supervisors review the information after it has been summarized, though

more advanced computerized timekeeping systems can perform most of these

tasks automatically.
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Summarizing Wages Due – This should be a straightforward process of multiplying

the number of hours worked by an employee’s standard wage rate. However, it can

be complicated by overtime wages, shift differentials, bonuses, or the presence of a

wage change partway through the reporting period.

Keying Employee Changes – Employees may ask to have changes made to their

paychecks, typically in the form of alterations to the number of tax exemptions

allowed, pension deductions, or medical deductions. Much of this information must

be recorded for payroll processing purposes, since it may alter the amount of taxes

or other types of deductions.

Calculating Applicable Taxes – The payroll staff must either use IRS-supplied tax

tables to manually calculate tax withholdings or have a computerized system or a

supplier determine this information. Taxes will vary not only by wage levels and tax

allowances taken but also by the amount of wages that have already been earned

for the year-to-date.

Calculating Applicable Wage Deductions – There are both voluntary and

involuntary deductions. Voluntary deductions include payments into pension and

medical plans, while involuntary ones include garnishments and union dues. These

can be made in regular amounts for each paycheck, once a month, in arrears, or

prospectively. The payroll staff must also track goal amounts for some deductions,

such as loans or garnishments, in order to know when to stop making deductions

when required totals have been reached.

Accounting for Separate Manual Payments – There will inevitably be cases

where the payroll staff has issued manual paychecks to employees between

payrolls. This may be caused by an incorrect prior paycheck, an advance, or

perhaps a termination. Whatever the case, the amount of each manual check
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should be included in the regular payroll, at least so that it can be included in the

formal payroll register for reporting purposes, and sometimes to ensure that the

proper amount of employer-specific taxes are also withheld to accompany the

amounts deducted for the employee.

Creating a Payroll Register – Summarize the wage and deduction information for

each employee on a payroll register, which can then be used to compile a journal

entry for inclusion in the general ledger, prepare tax reports, and for general

research purposes. This document is always prepared automatically by payroll

suppliers or by in-house computerized systems.

Verifying Wage and Tax Amounts – Conduct a final cross-check of all wage

calculations and deductions. This can involve a comparison to the same amounts

for prior periods, or a general check for both missing information and numbers that

are clearly out of line with expectations.

Printing Paychecks – Print paychecks, either manually on individual checks or,

much more commonly, through a computer printer, with the printouts using a

standard format that itemizes all wage calculations and deductions on the

remittance advice. If direct deposits are made, a remittance advice should still be

printed and issued.

Keying Payroll Information in General Ledger – Use the information in the payroll

register to compile a journal entry that transfers the payroll expense, all deductions,

and the reduction in cash to the general ledger.

Sending Out Direct Deposit Notifications – If a company arranges with a local

bank to issue payments directly to employee accounts, then a notification of the

accounts to which payments are to be sent and the amounts to be paid must be

assembled, stored on tape or other media, and sent to the bank.

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Depositing Withheld Taxes – The employer must deposit all related payroll tax

deductions and employer-matched taxes at a local bank that is authorized to handle

these transactions. The IRS imposes a rigid deposit schedule and format for making

deposits that must be followed in order to avoid penalties.

Issuing Paychecks – Paychecks should, at least occasionally, be handed out

directly to employees, with proof of identification required; this is a useful control

point in larger companies where the payroll staff may not know each employee by

name, and where there is, therefore, some risk of paychecks being created for

people who no longer work for the company.

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