1.

Introducti on
This document is a proposal prepared for the Payroll Management project proposed for
SOS children village.

1.2 Statement of the Problem

Payroll is generally a company's greatest cost. Traditional employee attendance systems
are inefficient and make it very easy for employees to bypass the system by writing false
data on a sheet. To save the above-mentioned problems automatic and flexible system
should be in play, the proposed system is one of which.

1.2 Scope
The scope of this project includes solutions for managing the employee personal data, leave
management, personnel actions, calculating payroll, effectively register employee
attendance with the help of Biometric Fingerprint Attendance Device and system
authentication along with authorization for the software users. In addition to this, the
software will prepare different kinds of reports for upper management of the bureau in
order to assist them in their decision-making process. The system will control and manage
the employee personal database such that specific users with different role types as
manager, administrator, human resource personnel and finance will be able to manipulate
the systems database based on their given access privileges. This software will provide
authentication and authorization mechanism. Every user with specific role type can be able
to login to the system with his/her username and password and have access to the system
of which the access is granted.

2. Overall Descripti on
The system is divided into several modules based on the major action conducted in the HR
and Payroll department. The main modules are Employee Profile, Attendance, Leave,
Personnel Actions, Payroll Management and Reporting. These modules will be discussed
further including what actions are being performed next.
 PAYROLL MANAGEMENT PROJECT PROPOSAL

2.1 Employee Profile

This module is the backbone to all the rest of the modules because all the settings are to be
set here according to the preference of the company. Create, Read, Update and Delete
operations (CRUD) are applied in all of the sub-modules. This sub module contains the
settings for HR, Account and Payroll. All data for these module can also be imported from
an eternal source line NAVISION discussed on the TOR document.

2.1.1 Management

Human Resource Management

All the settings that are necessary for the HR department are set here. Note this module is
not a full HR module but only the necessary parts that are needed as an input for the
payroll part.
 Leave
 Leave Type- in a company employees take different types of leaves such as Sick
Leave, Annual Leave or other. These types are added into the database in this
section.
 Leave Plan- here the company can define leave plan of when employees can use
their annual leave.
 Annual Leave Entry- increment, current leave count, and other leave related
things will be set here.
 Shift
The check in, check out, break in, break out and name of shift are displayed. We can
edit the existing shifts or add new shift into the database.
 Holiday
The yearly holidays are added here based on the calendar. It will later come in
handy to discard these days in the attendance system.

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 PAYROLL MANAGEMENT PROJECT PROPOSAL

 Department
Departments and sub-departments that are in the company with their
corresponding leader name is added using this page. Editing and deleting options
for previously entered data is included here.

 Employment Type
There are different types of employment types like a seasonal worker, contract
worker or full time. These types are registered into the database for later use in
employee registration according to the company’s rules.

 Overtime
The overtime rate and type the company uses are inserted here. Previously entered
overtime rates can be edited as well.

 Attendance Type
This is the page were the different types of attendances like daily, weekly or
monthly attendances are logged into the database for a later performance
evaluation purpose.

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 PAYROLL MANAGEMENT PROJECT PROPOSAL

Account Management
In this sub-module we will be able to manage the company’s information, users, roles they
have, group types and their leaders, users account etc.

 Company Information
All the important data about the company like the company structure, name,
address and logo are cataloged here.
 User
Every employee of a company will have a corresponding user. In this page the
system will allow you to create new users for their analogous employees.
Previously inserted users can be edited or viewed as needed.
 Role
Since every user has a role or purpose in a department in which he/she belongs,
this page will help in adding role and permission status to its equivalent user.
 Group
Some users may belong to groups under a department, this is a page dedicated
to creating groups. For this groups we set their respective roles and permission
status accordingly.
 Account Management
This page will allow us to manage the users created. Options like removing user
when terminated, resetting user account, binding users or assigning users to
groups are available here.
 Backup
The system needs to backup for safety reasons. In order to achieve this, the
system will have a timely scheduled backup where the administrator sets the
time and were the system would back it up.

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 PAYROLL MANAGEMENT PROJECT PROPOSAL

Payroll Settings
Payroll is the sum of all the finical records of salaries for an employee, bonuses and
deductions. In order to pay employee the system will calculate the above mentioned
entities. All the necessary information to calculate the payroll of an employee are set in this
settings page.

 Bonus
The different types of bonuses, the method of paying and their corresponding
amount is cataloged into the database here.
 Allowance

The different types of allowances like transport allowance will be added

here. Some allowance types are taxable by law, in order to address this issue
the system will have setting if that specific allowance is taxable or not.

 Deduction
It is an amount withheld by an employer from employee’s earing for various
reasons. There are two types of deductions, recursive and non-recursive.
 Recursive
This types of deductions are continuous throughout the year for
instance, cost sharing, credit association etc. In this setting, the type of
deduction and the percentage to be deducted is cataloged.
 Non-Recursive
It is not a permanent deduction; it terminates after some amount of
time. The type of deduction the percentage to be deducted and the
time it terminates will be logged in.
 Pension
It is the payments an employee receives upon retirement. In this
setting the percentage amount to be deducted recursive from the
employee’s salary will be set.

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 PAYROLL MANAGEMENT PROJECT PROPOSAL

 Provident Fund
It is a form of social safety net into which employees workers must
contribute a portion of their salary and the company must contribute
on behalf of their workers. The amount of portion to be deducted both
from the employee and the company will be set here.

2.1.2 Employee
In this page all the basic data needed to register an employee is inserted here.

2.2 Attendance
In order to improve the performance of a company, following up on employees is
important. One means of achieving this goal is a constant follow up on employees. The
Attendance module will be page with the fingerprint machine and use the imported
attendance data to view daily, monthly, weekly and monthly attendances of employees. In
addition the system will handle miss punches. Based on the user’s day off, shift, and leave
this module will label this days as such and not as absent.

2.3 Leave
 Leave Request
This page will provide users to fill out a leave request and to be sent to the
appropriate HR department based on the leave type.

 Leave Approve/Decline
Once the request is sent, it up to the department or whoever is in charge to approve
or decline the request. This page provides the option of accepting or declining the
request. After the action is complete it is posted automatically on the user who
requested the leave.

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 PAYROLL MANAGEMENT PROJECT PROPOSAL

2.4 Personnel Actions

Actions that a personnel performs on users are available here. In this module, anything
related to the employee’s status of work is addressed. Some of them are

 Promotion/Demotion of users
Based on the performance of the employee the personnel will promote or demote
that employee. This decision is made based on the attendance record of the
employee and….. This page will show this records and the personnel will decide.
 Termination of users
Based on the employee performance he/she can be dismissed. This page will
provide the interface to terminate an employee permanently.
 Transfer to other department, branch or city
 Blacklisting

2.6 Reporting
This module is capable of being customized and easily amended, which makes it one of the
modules with high flexibility and ease of customization. It can handle operations like:

The user can get reports like:

 Employee profile
 Manpower report
 Attendance reports
 Overtime Report
 Leave Report
 Payroll report
 Denominations report
 Customs and Revenue related report
 Department Payroll Report
 Others.
Remark: Reports may be added according to the company’s requirement and need. All
reports can be configured to an SMTP server or an email server to be exported there.

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 PAYROLL MANAGEMENT PROJECT PROPOSAL

3. Functionalities Summary
FUNCTIONALITIES

APPLICATION ADMINISTRATION AND SETTINGS

User account and  Creating new application user

Permission  Modifying existing application user
 User permission on different functionalities
Grouping  Department structure setting, each employee will be assigned for his/her
group. This will the reporting easy
Shift Setting  Defining one or more than one shift
 Each shift has its own check in, check out and tolerance time
Day off Setting  Flexible day off setting, Helps to give employee day off in any days. If
attendance importing date is day off and if there are employees who
worked on that day and they are approved, they will be entitled for
overtime. The application will give a report
Holiday Setting  Holiday registration, if attendance importing date is holiday and if there
are employee who worked on that day and they are approved, they will
be entitled for overtime. The application will give a report
Database backup  Application administrator can set backup time
 The application will back up the database based on the saved timer

EMPLOYEE REGISTRATION

Employee registration  Basic employee information registration, the use of this information is
to process attendance not for other personal details used by HR
department

ATTENDANCE PROCESSING

Attendance Processing  Starts from registration of finger print template

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 PAYROLL MANAGEMENT PROJECT PROPOSAL

 The application will automatically import employees attendance

from biometric device
 The application will check each employee current shift, holiday, day
off and save the attendance
 Users of the application will be able to see attendance reports based
on the imported attendance
 Attendance report with different filter options like group, shift, etc.
Leave processing  Leave types will be defined
 Leave entry
 Leave reports
Shift management and  A shift will be assigned for employee
rotation  Employee(s) or group can have a fixed shift or shift can be defined for
those employees who have a specific day based shift rotation so that
they can be managed with the new shift. The application
administrator can change setting anytime. Each employees shift will
be automatically changed to the rotated shift
 Shift report
Overtime Processing  Overtime in and out controlling
 Report by group
Third party integration  The system will be flexible in being integrated with other devices like
RF printers, Barcode Printers and third party software like NAVISION.
Additional features upon  Employee Help Service
request  Canteen Management
 Mobile Access
 Remote Access
 Department Communication
 Other requirements Will be recognized hear as per request

Compliance table

Request Response
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 PAYROLL MANAGEMENT PROJECT PROPOSAL

Payroll system with a minimum number of Two Comply

Thousand (2000) users
Compatible with NAVISION accounting system Comply
with ability to import and export data between
these systems
Ability to compute statutory reports required by Comply
the government of Ethiopia
Compatibility with organization email with the Comply
ability to automatically mail staff pay slips at the
end of the pay run period
Audit functionality to highlight variances in Comply
payroll for subsequent pay periods
Ability to capture staff leave balances Comply

Attach company profile, experience and government licenses, insert table of

content, font page with your and SOS log and put the pricing like this on the
finical proposal and remove this part.

Pricing Proposal
Payroll Management System ETB
Support / Year ETB
Total ETB

All price is not inclusive of VAT or any TAX

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