Chapter I

INTRODUCTION

Background of the Study

A payroll management system includes all of the tasks associated with paying an

organization's personnel. It usually entails keeping track of hours worked and ensuring that

employees are paid correctly. It also involves calculating taxes and social security and ensuring

that they are withheld and processed correctly. A variety of different deductions may be

estimated, withheld, and processed as part of payroll administration, depending on the employer.

Nowadays, a payroll system isn't merely necessary. It is now a requirement for

businesses. The system would store all acquired data in several registers that would be linked

together and would allow for direct and rapid access. It is the total of all financial records in

which a business or company pays its employees for work accomplished over a specified period

of time. A payroll system includes everything that has to do with the electronic payment of

employees and the submission of employment taxes. Calculating employee compensation,

logging payroll transactions, and determining and paying payroll taxes are all part of the payroll

process. Without this system in place, the corporation would have difficulties calculating

payments for services or labor performed by personnel.

 A web based payroll system ensures correct accounting of monies paid to workers for

work or services rendered. The institution would struggle to account for payments for services or

labor completed by workers without this mechanism. One advantage of a payroll system is the

ability to measure employee productivity in the workplace. This makes it simpler to see who is

working to their maximum potential and who is underperforming.

According to the researcher of Nyanmaru Computerized Payroll System (2013)

Nowadays, all businesses are getting more modernized, and they employ contemporary

technology to make transactions faster, easier, and more precise in order to save time and

provide safety and security. It also assists humans in solving and comprehending complicated

problems and analyses, such as human computational needs. Especially for businesses or

corporations that deal with large amounts of data and sophisticated transactions.

Purpose and Description

The Payroll management system could really help the Philippine National Oil Company

(PNOC) especially in the calculation of salaries and deduction because it handles every aspect of

the process. All of the records required for the salary calculation operations are stored in a

computer-based record keeping system using a back-end tool. All of the procedures are handled

in the front-end utilizing a front-end.

The Payroll management System is a Web-based that can perform the same basic

function as those performed manually. The important differences are the system speed, accuracy,

reliability, and ability to easily generate reports. In a Web- based payroll system, the computer

stores data such as an employee's name, address, pay rate and deductions. The system is designed

to have a responsive web design for better appearance and functionality.

Objectives of the Study

The main objective of this study is to create a Web-based system to help a company to

have an efficient and effective way of monitoring their employee’s timekeeping and payroll

system to give a higher quality of service.

Specially, it aims to achieve the following objectives:

● Develop a system that will improve the company’s process in the Timekeeping

and Payroll

● Develop a system that will monitor employee’s data that is efficient to use

● Secure the records of employees and to have more manageable files

● Calculate payroll transaction easily

● Summarize all the Deducted Contribution of Employees

Scope and Limitations of the Study

Scope

The suggested Payroll System will address a wide range of timekeeping and payroll

issues. This contains data gathered from an employee's work schedule, daily time worked, and

daily time provided. All tasks required to report employees' time worked are included in the

payroll process.

Limitation

The pay of the employee will not be provided via automated teller machine (ATMs) or

cheques, for the reason that the company insisted that salaries must be on a cash basis. This

proposed system is only applicable and can only be used by the management of PNOC company.
Definition of Terms

Payroll

Is the monetary compensation that a company must pay to its workers for a specific

length of time or on a specific day.

Employee

A person who works for a pay or income

Salary

This refers to wages received on a regular basis, usually weekly, bi-weekly

or monthly.

Deduction

This refers to business costs or losses that can be legitimately deducted from a company's

total revenue for calculating taxable income.

Web-based system

It is a software system whose main purpose is to publish and maintain data by using

hypertext -based principles.

 Chapter 2

REVIEW OF RELATED SYSTEMS/STUDIES

This chapter represents the relevant literature and studies that the proponents considered

in strengthening the claim and importance of the present study.

Technical Background

The PENDANCE : A Web- based Payroll Management System for PNOC at Mabini

Batangas is a system that helps the company calculate transactions easily and summarize all the

deducted contributions of the employees. This chapter covers all the software and Hardware

resources used for the whole system and development process.

The proponents used different software as part of the development of the system. The

PHP, HTML, and Sublime Text will be used as the programming language in the development of

the Web-based system. PHP is a web development-oriented general-purpose programming

language. It used to stand for Personal Home Page, but today it refers to the recursive initialism

PHP. Hypertext Markup Language (HTML) is a computer language that governs the

construction of a webpage. It is mostly in charge of determining how text looks, including

hyperlinks, bulleted lists, and other elements. Sublime Text is a cross-platform source code

editor that is available as freeware. Many programming and markup languages are supported

natively. For the Operating System, any web browser will be used. The system will use a web

browser that will serve as the platform to run the program, the reason is that it is more efficient to

use a web browser so that clients can access the program given that day they have an internet

connection.
Related Studies (Foreign)

According to the researcher (Aguilera, Bronzas, and Marqueses) of the automated payroll

system of Pamana Medical Center (2010). In practically any organization, a fantastic payroll is

one of the most crucial topics to pay attention to. Although it is hard to manage payroll tasks

using a pen, ledger sheet, and calculator, most businesses now choose to utilize automated

payroll software.

According to the University of California (May 15, 2016) In today's world, numerous

systems are being deployed in many sectors in order to enhance university manual transactions.

As a new generation emerges, new technology emerges to assist consumers with quick and

secure transactions. This research explains how computers may save time and effort when it

comes to updating and other forms of correct processing.

According to Aishwarya Gupta (2013), AMITY University UTTAR Pradesh that

developed a system entitled with employee Payroll System is an application that enables users to

create Republic of the Philippines and store employee’s records. This program is beneficial to

the company since it keeps track of employee information. This program was written in Java,

which is a platform-independent language that can be used on both a single system and a

distributed network. Furthermore, java-based apps may be extended to Internet-based

applications. As a result, java was picked to construct the application's front end. That

emphasized the application's advantages of simple computations.

Synthesis

The related studies show the importance of having a system that provides instant service

to the company pertaining to the payroll system. Every system has their own method or

processes with regards to providing services to the client. But all of them have the same goal

which is to improve the payment system.

According to some literature on the suggested study, a computerized payroll system

provides the firm with an efficient payroll system that can properly track employee attendance.

Similar features to the proposed system by the proponents were also stated from the

related studies such as developing it in a web-based system and updating data of the employee.

Conceptual Framework

The proponents come up with the conceptual framework of the study through the

information and ideas gathered from the conceptual and research literature.

Figure 1 shows the Conceptual Paradigm of the study. It will serve as a guide for the

proponents in conducting the study in developing the desired output in terms of giving assistance

to the company. It contains the input, process, and output of the designed system.
 Figure 1 Conceptual Framework

Figure 1 shows the processes of the proposed project. The system provides information to

the user with regards to the payroll system. It is designed to help company and accounting

personnel to manage employee compensation, deductions, allowances, and benefits in an

organization.