DESIGN AND IMPLEMENTATION PERFORMANCE BASED PAYROLL

MANAGEMENT SYSTEM
CASE STUDY: HEALING STREAM LABORATORY
 CHAPTER ONE

1.0 INTRODUCTION

1.1 BACKGROUND OF STUDY

Payroll is a criterion for every organization to pay employee accurately their

salary and enrollments on time. The idea of taking control of employee pay

calculation is quite tedious if done manually and requires more effort and time

mainly for big organizations. Prompt payment of staff salaries by management of

an organization boosts the morale of staffs and enhances productivity. Manual

preparation of staff’s salaries is often associated with lots of problems, which

often time disrupt the morale of workers. The problems ranges from arithmetic

error in computation, delay in payment, underpayment or overpayment and so on.

In this project work, automated system shall be developed which shall eliminate

all the problems associated with the manual process. The software payroll

management system is a standalone application provided as a solution to this

paper.

The Timekeeping and Payroll System of the HEALING STREAM

LABORATORY is imprecise sometimes when it comes in computation of
timekeeping and payroll. Also, the employees of the company are using Bundy
clock to indicate in their date time card, the time of work in and out every day and
the Accountant administrator based the wages of each employee in that time card.
It is hustle to use and long term creating the payroll slip, and the time keeping
which the Human Resources need to encode all the attendance of employee using
spreadsheets. Therefore HEALING STREAM LABORATORY Time Keeping and
Payroll system need improvement. By this proposed system, the program will run
through computer for payroll record with an integration of biometric fingerprint
scanner for time keeping. It contains the automation of time keeping for the
assumptions of every employee to generate payroll transaction. It can update
employee information, individual and groups reports, file leave, set a non-working
or working holiday, access control and also calculation of 13th month pay and tax
refund yearly report.

Rationale

The proposed system will run through computer for payroll record

with an integration of biometric fingerprint scanner for time

keeping. It contains the automation of time keeping for every

employee to generate payroll transaction. It can update employee

information, individual and groups reports, file leave, set a non-

working or working Holiday, access control and also calculation of

13th month pay and tax refund yearly report.

1.2 STATEMENT OF PROBLEM

Manual systems of payroll always put pressure on people to be correct in all aspect

of their work. With manual system the level of services is dependent on individuals

and this puts requirement on management to run training continuously for staff to
keep them motivated and to ensure that they are following the correct procedures.

It can be all too easy accidentally to switch details and end up with inconsistency

in data entry or in hand written order. This has the effect of not just causing

problems with customer service but also making information unable to be use for

reporting or finding trends with data discovery. Reporting and checking that data

is also a problem and be time consuming and expensive.

Other problems caused by the manual payroll system are:

 Calculating salaries through manual operation is burdensome and

stressful.

 Delay in payment of staff salaries because too much time is spent in

preparation of the payroll.

 The use of paper to keep pay details about each employee which results

in too much paper work.

 There is less security in the manual system.

1.3 AIM AND OBJECTIVES

This study aimed to help the HEALING STREAM LABORATORY to

have an efficient and effective way of monitoring their employee’s
time keeping and payroll system to give a higher quality of service.
OBJECTIVES

 avoid errors in the preparation of the payroll;

 ensure prompt payment of accurate salaries;

  reduce the use of paper in record keeping;

 keep records of employees secure;

 make necessary information available to employees;

 offer update and processing control to the payroll system; and

 Improve the working efficiency of the employees.

1.4 SIGNIFICANCE OF THE STUDY

The study will aid in reducing errors, fraud, increase speed and also aid growth in
organizations if successfully implemented. Manual payroll system in the
organization will be totally eliminated with this computerize system in place. The
study will also serve as a guide to other student researchers who may want to
conduct further research on the subject matter. Findings and recommendations
from this system will aid in developing

Organizations which have very few employees may calculate payroll manually and

find it less cumbersome and accurate but larger business organizations find it

boring and cumbersome going through the same process due to the required record

keeping and repetitive nature of the calculations involved in payroll.

A public sector HEALING STREAM LABORATORY has been chosen as the

litmus test for this project work because it is one of the largest employers of labor
and it has been discovered that calculating the payroll of large organizations by
manual process can be more prone to errors, inaccurate and burdensome. Also, it
has been discovered that the development and use of an application is more cost
effective than the manual system.
Therefore a secured application that will improve on the way employees are being
paid shall be developed for the Organization.

1.5 SCOPE /LIMITATION OF STUDY

The scope of the study is limited to only computerization of payroll system of

HEALING STREAM LABORATORY and the software developed will run on
standalone system.The proposed system Time Keeping and Payroll System for
HEALING STREAM LABORATORY many aspects of time keeping and payroll
process. This includes the capture of information based on the employee’s work
schedule, daily time worked and daily time rendered. The payroll process
encompasses all activities necessary to report employees’ time worked. The system
will convert the current company’s time keeping and payroll into Visual Basic
Program.
 The system will have a file management where it covers the records of
employee and system transaction log.

 The system also covers the Payroll Processing and Reporting

which includes the pay calculation of salary slip and time off

tracking.

 The employee will use biometrics to time-in and time-out for

recording of timekeeping.
 The system will have a report consist of summary of time sheet,

summary of Payroll Computation, Summary of Tax Refund and

13th Month Pay, Withholding Tax, SSS, and Pag-IBIG

Contributions.

Limitations

Financial constraint: insufficient fund tends to obstruct the efficiency of the

research in sourcing for the relevant materials, literature or information and in the

process of data collection (internet, questionnaire and interview).

Time Constraint: the research will at the same time engage in this study with

other academic work. This consequently will cut down on the time devoted for the

research work.

1.6 DEFINITION OF TERMS

1. Management: Management is the core of all operations in any organization. It

is very central to all organizational activities. Management therefore, is the process

by which superiors and subordinates create, direct, maintain and operate

purposeful modern organization through systematic, coordinated and cooperative

effort, so as to accomplish the desired objectives.

2. Organization: Organization are formal, social unit of system of behaviors

designed to enable humans and their machines to accomplish specific goal.

3. Monthly Salary: This is the actual amount that the employee is entitled to earn

in the month. This is known as the Basic salary.

4. Tax: This is the compulsory amount that goes to the state treasury form the

employee’s salary, and it is used by the government to provide social services such

as water, light and hospital for its people or citizens.

5. Gross Pay: his is the amount due to the employee after all deduction shave been

removed.

6. Deduction: A deduction is a payment/amount make out from the employee’s

earning.

7. Net Pay: This is the amount due to the employee after all deduction shave been

remove.

8. Project Design: The phase where you create a blueprint about the software (i.e.

how it will look and the phases of design), you decide what software to use to

design your project and what software is suitable to use for the object.
 CHAPTER TWO

2.0 LITERATURE REVIEW

2.1 INTRODUCTION
Payroll according to David Weaver et al (1998) is referred to as the total earnings

of all employees for a certain pay period.It is one of a series of accounting

transactions dealing with the process of paying employees for services rendered,

after processing of the various requirements for withholding of money from the

employee for payment of payroll taxes, insurance premiums, employee benefits

and other deductions (Payroll,Wikipedia the free encyclopedia.htm,2006).

Payroll involves the calculation of amounts due the employee, such as hourly

wages, a salary consisting of a certain amount per calendar period, or pay to

salespersons on commission. In addition to these payments, there are often

computed amounts of paid vacation time and accrued sick leave which have been

used or are available for use. All of these monies credited to the employee are

usually referred to as gross pay.

The purpose of payroll is to calculate pay due employees, to print paychecks and to

maintain cumulative earnings records of all employees.

2.2 THEORETICAL FRAMEWORK

In this research, the researcher to provide a better way of monitoring the

attendance of employee in HEALING STREAM LABORATORY), where the staff

and the manager can handle a faster and easy way of recording and monitoring

their daily Attendances. Only the Admin, HR and Accounting department has the

authority to use the system that can manipulate the records in the system. The

system will provide a reliable and efficient way of Timekeeping activity. The study

aims to produce a result of performance based payroll system according to work

hour and visual basic will be used to im that can cope up with the needs of the

company.

Input Process Output

Users:
Data:
Password &
Username
Employee’s
Information Reports:
Finger Payslip
Computation for
Registration Timesheet
Deductions, loans,
Timekeeping Pag-IBIG
taxes, 13th Month
Salary: SSS
pay, Tax Refund
Basic Salary, Withholding Tax
and TimeKeeping th
loans, 13 Month
Holiday, Earnings & Tax Refund

Computer,
Biometrics,
Router, UTP
Cable and Printer
2.3 RELATED LITERATURE
John Aquilan made a comparable thesis entitled “Automation of time attendance

System” in 2004, it stated that the automation of the time attendance records, time

in and time out of every employee using barcode system. It tends to eliminate the

manual recording system of time and attendance and also include salary

computation of each employee based on the time and attendance reports.

Ramon Floran in the Philippine Daily Inquirer, page 14 October 2005 wrote

on his article “The Computer Edge of the New Employment and Opportunities He

stated that computer gives a different feeling about what is happening in the

company. Business will be highly competitive and innovative because the

computer provides instant information.

According to Andrea Cantoma, March 2004 entitled “Computer Library

System for St. James Academy” stated that, in manual system in retrieving,

maintaining security and piling records take place because of the years gone by.

Furthermore, these files were only kept in envelopes and folders in wooden rocks.

There are also instances when the right information is given to a wrong person,

which affect quality of service.

 “Biometrics Technology to be Implemented in PNP”, 2009 The Philippine

National Police (PNP) also made by the international crime detection technologies

in the market, the said Philippine agency decided to adopt NEC’s (mentioned

above) Automated Fingerprint Identification System. Via the technology, PNP

staff and experts are able to authenticate unique body demographics, such as

fingerprints in the particular case. The technology also allows an almost

instantaneous identification. The technology was used however by first building an

initial database of 210,000 fingerprints. PNP actually used the said technology in

order to identify two “chop-chop” victims who’s mutilated bodies were found

dumped in several areas in Quezon City and Muntinlupa.

According to the mentioned above with the use biometrics technology the

PNP was able to identify a suspect because of the fingerprints.

According to Mayor Jun Bernabe on the article Planet Biometrics, In August

2011Parañaque City, Philippines has replaced its existing biometric machines with

a new fingerprint biometric attendance registry system, which it says is more user-

friendly and efficient.

The city’s mayor, Jun Bernabe, says the new attendance machines will

enable it to resolve the issues of long queues as well as employee complaints. A

total of 40 Model 628 Double Engine ZK Finger Print Stand Alone Time
Recorders were purchased. City hall took 15 units while the rest were installed in

other local government facilities.

The upgrade was jointly run by the city government’s Human Resource

Management Office and the Electronic Data Processing (EDP) Office. “Aside from

cutting manpower downtime, it makes timekeeping and payroll preparation

simpler, systematic and more accurate. It also provides an additional way to

identify, discipline and fire habitual later-comers, absentees and ghost employees,”

says Mayor Bernabe. According to the article mentioned above, with the use of

biometric fingerprint scanner in the attendance system of the organization which is

also connected to the payroll system. Saves time in lining up in the Bundy clock.

According to Thomas Primer on his article “Automated Computerize

Process”, in Readers Digest Magazine, May 2005, Page 45, for many businesses

automating the collecting of employee attendance data when employees begin their

shifts is still a manual process. Even business that has automated or computerized

processes such as scheduling, inventory, purchasing, general ledger and payroll

processing still use manual method such as time cards sheets to collect time and

attendance data.

NOVA time a group system developer, on last May 2007, the system that

will give management the power to not only utilize the tools we have available to
us today, but will continue to grow and evolve, giving it the capability to

incorporate and utilize the tools the new millennium promises to bring us. NOVA

time has brought a system designed for growth while maintaining the maximum in

flexibility. Where the sophistication lies within the programmed mechanism of the

system, allowing for a quick and simple implementation and employee training

cycle, after all the true test of a system is not only in the production and wealth of

reporting, but in the simplicity and ease of its operation in conjunction with a

simple and accommodating implementation program.

Better humans (2003) stated that a wireless fingerprint scanner could soon

be helping law enforcement agencies; government and the military instantly

identity the scanner, called sweet fingerprint, today. It is being demonstrated at the

government convention one merging technologies, which addresses issues of

homeland security. Scanned fingerprint can also be used to query a database for

someone’s profile, using automated fingerprint identification system, and the

profile can then be sent to a mobile device such as a personal digital assistant.

According to the related article mentioned above, fingerprint scanning

technology has been used in many fields as a means of security to confidential

government records. Technology helps law enforcers in the identifications of

employees.
The amount an employee earns is known as the gross earnings. Various plans such

as the salary plan, hourly rate plan, incentive pay plan, are used to determine an

employee’s gross earnings.

A payroll deduction is an amount subtracted from gross earnings. Payroll

deductions include deductions required by law, such as the federal income tax,

state income tax, and social security tax. They may also include voluntary

deductions, such as the life insurance and hospitalization insurance premiums. In

addition, some union contracts call for union deductions such as initiation fees and

dues to be withheld from the employee’s earnings. The remainder after subtracting

all deductions is known as net pay. Net pay is the amount actually given to the

employee and it is commonly referred to as the take-home pay.

Gross Wages ****

Less: Deductions

Taxes ****

Union Dues ****

Loan ****

Total Deductions - ****

Net Pay ****

2.3.0 The Payroll Process

According to David H.Weaver et al (1998), preparing the payroll involves the

following steps:

1. Journalizing the payroll

2. Posting to the employee earning’s records

3. Posting to the general ledger accounts

4. Recording and posting payroll taxes

5. Recording and posting payment of the payroll.

1. Journalizing the Payroll

The payroll journal is a special journal used to record payroll data for each pay

period. The payroll data for each pay period for all employees is recorded in the

payroll journal.

After the data for each employee is entered in the payroll journal, the payroll is

then proved by adding and subtracting the columns.

2. Posting to the Employee Earnings Records

After the payroll journal is totaled and proved, the payroll information from the

payroll journal are posted to the employee earnings records. An employee earnings

record shows the details of an employee’s earnings and deductions for the year.

3. Posting to the General Ledger Account

The totals of the payroll journal provide the data for posting the payroll to the

ledger account.

4. Recording and Posting Payroll Taxes

The federal and state laws require employees as well as employers to pay payroll

taxes. The payroll taxes also posted in the general ledger.

5. Recording a Payment of the Payroll

The records of salaries and wages that an employer must keep are called payroll

records. These records must provide several types of payroll data, including the

following:

 The amount of wages and salaries paid to the employees

 The amount deducted from employees’ earnings

 The classification of wage and salary expenses

 The payroll taxes owed by the employer and the employees to the government

agencies.

When salaries are paid, the total amount of all the payroll cheques is entered in the

cash payments journal. The amounts are then posted from the journal to the ledger

account.

2.3.1 Methods of Paying Employees

The method for paying employees depends on whether an organization chooses to

pay their employees by cash, bank transfer, or cheque. Paying by cash involve the
payroll being paid in cash. Some organizations pay their employees by bank

transfer. A bank transfer is a method of transferring funds from one account to one

or more other accounts. In this method, the employer gives the bank a cheque for

the total net pay and a list showing the net pay for each employee.

Paying by cheque provides the employer with cancelled checks as proof that the

employees have been paid. It also avoids having a large amount of cash on hand on

paydays and sorting the cash into individual pay envelops.

Some employers use a voucher cheque for paying its employees. A voucher cheque

consists of two parts, one of which is a cheque. The lower part of voucher cheque

is a regular cheque. The upper (or voucher part) is the employee pay statement and

is kept by the employee as a record of gross earnings, deductions and net pay for

the pay period.

2.3.2 COMPUTERIZED PAYROLL SYSTEM

Computerizing a payroll system can be beneficial to an organization because it

reduces time required for payroll work since payroll work requires performing

wide range of activities that involves a great deal of time in recording information,

preparing forms, and making calculations. A computerized payroll calculates and

tracks employee salaries, wages, bonuses, tax withholdings, and deductions. It

prints employee paychecks, provides reports to better manage employee pay

records, and generates complete weekly, monthly, quarterly, and annual payroll

tax-related forms and reports.

Computerized payroll can assure business accurately withholds taxes from

employees and pays mandatory fees such as Worker’s Compensation, once the

initial information is input into the system. It is also used in automating and

providing timely and accurate payroll processing for all types of employees. The

computerized payroll is designed to process all types of payroll transactions for the

purpose of computing and paying employees hence, computerization makes

generating payroll a much simpler and quicker process than if trying to perform

these duties manually.

2.2.1 Functions of Computerize Payroll

Some of the functions commonly handled by payroll software include:

 Pay employees for work performed

 Print payroll checks.

 Provide a structured system of general guidelines for your organization,

including employee pay structure, pay frequency, and overtime definitions

 Distribute wages and salaries to specific general ledger accounts.

 Store relevant information on each employee, such as contact information,

start date, and wage and payment history.

2.3.3 The Advantages of Computerized Payroll

Some of the advantages of payroll system are undoubted speed and accuracy.

Computerized Payroll ensures accurate payment of employee’s pay and

government taxes.

It also holds many benefits for organization apart from time saving and accuracy

already mentioned, other advantages include:

 Reduced administration time by automating payroll calculation and

printing of paychecks

 Eliminated tax penalties for inaccurate returns or late payments of

amounts withheld

 Improved payroll accuracy with automatic tax and deduction calculations

 Easily compensate employees for work performed

 Improved organization with consolidation of all payroll related records

and reports

 Increased speed in adjusting to regulations by receiving periodic updates

and effortlessly produce the required governmental reporting

 Eliminated paper check security issues with direct-deposit capability

 Increased accuracy of tracking payroll expenses to the proper general

ledger account or customer job

  Reduction of administrative overhead

 Automation of many manual processes

 Provides timely payroll processing

2.3.4 Controls for Computerized Payroll Systems.

Computerized accounting system must have the same basic controls as manual

accounting systems in order to ensure accuracy, honesty, efficiency and speed.

However, automated accounting systems also require special controls. This is

because one major disadvantage to computerized accounting systems is that there

is a greater possibility for fraud and dishonesty than with a manual system (David

H.Weaver et al, 1998).

Some of the controls that organizations use to ensure that computerized records are

not tampered with, whether accidentally or for dishonest purposes includes:

Organizational controls: when a business sets up a computerized system, it can

organize the system in such a way to ensure maximum controls. For example,

computer equipments should be kept in a separate room that can be locked. Only
employees who are authorized to use the system and the equipment should be

allowed into the room.

Another control is dividing responsibility for the tasks required by the system

among a number of employees. For example, the person who designs the system or

the procedures to be followed, the people who operate the computers and the

people in charge of the disks or tapes on which programs or back-ups are stored

should all work separately from each other.

Program controls: certain controls can be built into the program itself. For

example some programs require that a password is entered into the system before

access can be made to the program. This is usually a code that prevents others from

having access to the work that is being done. Password is a special word or

combination of letters or numbers. Passwords are used to protect confidential files

or information. An example of a password is the personal identification number

(PIN), user login identification and authentication.

An error report is a control in which computer is instructed not to process

something. For example, the computer can be instructed not to write a check for

more than one hundred thousand naira. If a check request for one hundred and

twenty thousand naira is possessed, the computer will not issue the check.

However, it will issue an error report and refer the request to management. This

report alerts management to possible unauthorized attempts to use the program.

An item count is a control in which the software is programmed to allow a

specified number of items to be processed. For example, in processing payroll

checks, the computer can be instructed to print out only a certain number of

checks. As each is printed, a count is made. If the number of checks requested is

different than the number of employees, the program issues an alert.

Application control: Application controls prevent or detect errors and

irregularities in an application system. They do this during input of data, during

processing of data by computer, and with outputs from processing.

Application controls in the payroll system is illustrated below:

Input: Completeness test ensures that program verifies the existence of employee

name and identification number.

Processing: Record count ensures that the program verifies the number of input

transaction records is equal to the number of output transaction records.

Output: Record count ensures the program verifies that the total amount of

paychecks is equal to the number of payroll transaction records.

Program also verifies that the total amounts of paychecks is equal to total debits

and credits on general ledger accounts.

2.3.5 PAYROLL REPORTS

According to J.L Bookholdt (1999), Payroll systems produce three types of report:

the payroll register, control reports for pay checks, and various cumulative

earnings reports.

Payroll register: Payroll systems produce a payroll register prior to printing

payroll checks. The register lists all employees for whom paychecks are due. For

each employee, it shows the gross pay, list all deductions, and show net pay.

Producing the payroll register is an important control practice because a payroll

supervisor will have to review the payroll register for errors before printing the

paychecks. Then a clerk corrects error prior to printing the checks. This avoids

printing erroneous checks that could be stolen and cashed.

Print checks control report: Because paychecks can easily be stolen or falsified,

the system must control their preparation. The print checks control report aids in

detecting missing or unauthorized checks. The computer program that prints

checks also produces this control report showing the number of checks printed and

the total amount of these checks. The data control group compares these control

totals with the checks.

Cumulative earnings report: Employers are required to withhold taxes from

employees’ paychecks and send these taxes to government. Payroll systems aid in

this process by producing several kinds of cumulative earnings reports, which

summarize the gross pay and tax withheld for an employee.

2.3.5 REVIEW OF THE EXISTING SYSTEM

Manual Payroll systems maintain data in a filing cabinet about each individual

employee. Payroll clerks then use data in this file to calculate gross pay and to

determine the amount of deductions. They also record in this file, cumulative

earnings information for individual employees.

Non computerized systems use a journal called payroll register, in which a payroll

clerk records the calculation for gross pay, deductions and net pay.

In the manual system, personnel department screens applicant, authorizes the

employees’ initial pay rate, and creates the manual employment record and then

sends a copy to the payroll department. For salaried employees, this record

authorizes a periodic paycheck.

There are seven departments in Kosofe Local Government namely:

 Personnel

 Finance

 Work/Housing

 Agriculture/Rural

 Education

 Budget/Planning/Statistics department

 Primary Health Care

Other Units are under the chairman’s office in the Local Government and these

include:

 Audit

 Information and the

 Legal

All processes to compute the payroll to pay employees’ salaries in all these

departments are done manually in Kosofe Local Government.

The personnel department completes a series of activities prior to and at the

beginning of employment and forwards the information to the payroll department.

Before the new employee begins work, certain personnel records must be

completed. Generally these records form the basis for deductions that will be made

from the employee’s gross pay.

For a newly employed staff, a letter of appointment stating the grade level and step

is given to the new employee and a copy will be submitted in the personnel

department, after which the personnel department will send a copy of the

appointment letter to the finance department in care of the council treasurer. The

council treasurer will minute on the appointment letter to the officer in charge of

salaries to open a personal emolument record for the new employee.

The personal emolument record shows the name, address, the grade level and step

of the employee, the incremental date and the salary details (Gross pay, deductions

and net pay) every month for each employee for the year.

It is from the personal emolument record that salary details will be entered into the

payment salary voucher. The payment salary voucher contains total of salaries paid

to all employees in all departments in the Local Government, it is also from the

payment salary voucher that payment slips and checks are written out.

The payment slip and checks are dispatched to every staffs after they are written

out. It is after they have gotten their payment slip and checks that they can go to

the bank to collect their salaries.

For an existing staff, the process still remains the same as for a newly employed

staff except that while the old staff is leaving the former Local Government, he/she

will go to the new Local Government with the following documents:

 Last Pay Certificate

 Release letter

 Record of service

All the mentioned documents will be submitted to the Head of

Department/Director of the personnel department and the process continues the

same way as for the newly employed staff.

For a retiree, a letter is sent from the permanent secretary of local government

service commission to the chairman of the local government who minutes on it and

sends it to the head of personnel department.

The head of personnel department then sends it to the council treasurer, who sends

it to the officer in charge of salary with the order to stop payment of salary to the

retiree after three months from that date.

All this processing involved in paying salaries are done manually and all records

are stored in files which are eventually stored in a file cabinet.

All these manual processes have resulted in problems such as:

 Missing records

 Theft and fraudulent practices

 Errors

 Wastage of materials and

 Lack of adequate information.

Considering the research took place towards developing a new payroll system the

limits of the current system seems to be affecting in many ways not only the admin

staff, manager or company but also to the employees concerning their wages and

pay slips. Check-in attendance to paying wages the whole process seems to be

dragging and time consuming of admin, manager and employees. The attendance
check-in system which is currently in operation has to be a double work where

firstly the attendance is checked by paper in a prepared sheet for it and then will be

entered to the system later with times when the employees started work and ended

work. Therefore, the each of employee has to look for his/her name in the registry

which is in a paper and sign in/out with time ahead his/her name on it and then the

admin staff who enters them in the system has also got to find the names on page

in the system to clock him/her in/out. This system seems to be a hassle for the

admin where it could be done in one go.

2.4 GAP IN LITERATURE

In review of related literature and studies, the related

literature of JohnAguilan and Ramon Floran has same thought

regarding in Time keeping and payroll system.

According to J.L Bookholdt, he stated that payroll systems produce three types of

report: the payroll register, control reports for pay checks, and various cumulative

earnings reports. He goes on to advocate on method of payments that the method

payments depend on the organizational choice which I strongly believed. In his

work, it noticed that the method he adopted was method of paying by cash.

2.4.0 ANALYSIS AND IMPROVEMENT

Form the above related works gotten from different authors and writers, there is no

much gape between them and theproposed system. The methods they used are not

burdensome to any organization that accept such methods but it was noticed that

their work were not up to date in terms of security. The proposed performance

based payroll system will try to eliminate some inconveniences of the existing

system of HEALING STREAM LABORATORY and as well improve the above

related works. The system will keep track of employee attendance in such a way

that when the employee comes to work and enter his/her details once it’s been

verified the system will just clock him/her in and record the start time of the

employee, the system will be monitoring the employee as he/she perform the daily

assignments. After the employee work hour ends, the system will automatically

record the work hour and multiply it by unit pay, and generate attendance of the

employee and it clock him out.

The are two users of the system: the admin and employee. The user staff logs in

with his/her username and password and the system clock him and out and

generate attendance for the employee. The admin or salary officer is the one that

compute employee’s earning at the end of month or week and make the necessary

transaction.
 CHAPTER THREE

3.0 RESEARCH METHODOLOGY

3.1 INTRODUCTION
This chapter presents the detailed methodology used for the study. It explains the
research design and provides detailed information about the population, its sample
and sampling techniques and the source of data that will be applied, while given
out the instruments scoring scale and procedure to which data was collected, and
data analysis techniques.
In this chapter, the analysis and choice of method used in this research work, will
be analyzed from the existing system and design. It includes specific methods
Which were used in order to achieve the aim of the research work, particular
requirements for implementation of the project and clear explanation of reasons
why such method were used for design and implementation of the system, also
included is a brief description of the current system of computer based payroll
system.

3.1.0 METHODOLOGY
According to Bennett (2002) defined methodology as a set of general principles
that guide a practitioner or manager to the choice of the particular method suited to
a specific task or project”. Whitten (2001) maintained that a system development
methodology is a very formal and precise system development process that
defines a set of activities, method, best practices, deliverables and automated tools
for system developers and project managers used in developing and maintaining
most or all information systems and software” There are different kinds of system
development methodology such as build and fixed model, spiral model, waterfall,
object oriented, top-down, bottom-up, stepwise refinement etc. In view of this
build and fixed model is the one of the worst model for project development
because the project is built without specification and lacks design steps. Spiral
model is one of the software development processes which combine the design and
prototyping in stages, together to gain the advantage of top down and bottom-up
approaches (Barry, 1986). Rapid prototyping determines and identify the design
flaws and obtaining feedback during process (Frederick, 1975). Waterfall model:
This is a software development process which follows a sequential approach. This
approach steadily flows downwards like a waterfall which includes the phase of
conception, initiation, analysis and design (Winston 1970). But for this project
work, Themodel driven development (MDD) is adopted because the MDD
methodology is suitable for the payroll management system. The Model Driven
Development (MDD) methodology consists of seven phases like investigation
phase, analysis of problem, requirement phase, decision analysis, Designs,
Construction phase and implementation phase. The MDD methodology plays an
important role in the success of the payroll project.
The MDD methodology approach emphasizes the drawing of models in order to
1. Visualize and analyze problems of payroll management system
2. Define requirements of the organization
3. Design the information system for the organization

3.2 RESEARCH DESIGN

3.2.0 Methods of Research Used

The Proponent used Descriptive method of research; the "Descriptive"

method of research is where the person doing the research presents it in a

descriptive manner." The descriptive research designs enable researchers to

describe or present the picture of a phenomenon or phenomena under

investigation”. It is the opposite of another form of  research

methodology called "Analytical".

3.2.1 The Descriptive Method

The proponent conducts a personal interview with the softouch design

client. The project researcher talked to the CEO and secretary/accoutant, for

gathering of data about the system specification, needed for creating our
proposed system that can help them for their security, timekeeping and payroll

system in an efficient manner.

3.2.2 Interview

During requirements gathering stage, the proponent conduct interview

with Manager of HEALING STREAM LABORATORY, who gave the

resources about the flow of the current system and the process of computing

the salaries, monitoring and timekeeping of the employees.

3.2 .3 OBSERVATION

The proponent had some inspection regarding the current system to

gather more ideas on how to design our proposed system. From this

observation, we noted some problems being encountered.

3.2.4 INTERNET RESEARCH

The proponent also conducts an internet research to gather more

data and topics that are related to our study.

3.2.4 LIBRARY RESEARCH

The proponent also used library materials like thesis documentation

and books that are related to our study in gathering significant

information and validation of our study.

3.2.5 The Rapid Application Development (RAD)

The project developmental design, where the researcher designed a system that

provides a well-managed and secured performance payroll management system for

Softouch Designs. Considering the timeframe of the project, the

researcher/proponent follows the Rapid Application Development (RPD)

methodology, since the concept develop a faster and easy way of developing the

payroll system.

The Rapid Application Development (RAD) is a software development

methodoly that uses a minimal planning in favor rapid prototype. A prototype is a

working model that has a function of equivalent to a component of the product.

Requirements
Planning
Phase

User Design Construction

Phase Phase
 Cutover Phase

Figure 1.0

Requirement Planning Phase: this phase combines elements of the system of the

system planning and system analysis phases of the system Development life circle

(SDLC).

User Design Phase: during the phase, user interact with the system analysist and

models insuring that their is a system user friendly and easy to handle by

administrator. User design is a continuous interactive process that allows

administrators to understands, modify and eventually approve a working model of

the system that meets their needs.

Construction Phase: this phase focused on program and application development

task similar to the SDLC. However, administrator continue to participate and can

still suggest changes or improvements of the system. Its tasks included

programming and application development, coding unit-integration and system

testing.
Construction Phase: The phase focused on program and application development

task similar to SDLC. However, administrator continue to participate and can still

suggest changes or improvements of the system. Its task included programming

and application development, coding unit-integration and system testing.

Cutover Phase: the resembles to the final task in the SDLC implementation

phase, including data conversion, testing and user training. Compare with the

traditional methodsthe entire process been compressed. As a result, the new system

is built, delivered, and placed in a proper operation by the administrator.

3.3 SAMPLE AND SAMPLING TECHNIQUES

In order to have a more effective sampling of the various groups, a total number

of 30 staff were were sampled.

The following techniques were used sampling each group of the class

Categories of staff Number of staff

Management Staff 5
Permanent Staff| 15
Contract Staff 10
Table 1

3.4 SOURCE OF DATA

Questionnaire was used for collecting responses from the subject selected for

the study. The questionnaire consisted of parts. The first part consisted of

questions that make it possible for bio-data to be collected. This part of the
questionnaire was intended to elicit information about the sex, age, and working

categories and employment duration of the respondents. The other going to be

answered by the volunteers, the questions to be asked were designed to lead my

volunteers to reveal the true state of the software designs after the

implementation of the computerized system, and the loop holes such a system

has created within the years.

The questionnaire were categorize into answering three parent questions;

What is the purpose?

Have their purpose of establishment been achieved?

Are you satisfied in your current Time keeping and payroll

system using manual system?

Do you want to change your current system to performance

based payroll system using biometrics?

Do you want think that using computerized system is more

accurate than using the usual paper record?

To what extent have their service been hindered from achieving its full

potential?

Do you agree that implementing the proposed system to your company would

lessen the fraud committed by some of the employees?

 Do you think that the system will optimize the process of the company in

computing wages and the timekeeping?

The respondents were allowed to answer Yes or NO on the question sheet. I

issued a statement to all respondent stating that their confidentially will be kept

a secrete and those helping us me cause any risk to their working hours, to

motivate them to give out true and fair answers to the question asked.

In designing the questionnaire, we followed the following procedure:

Deciding what information should be sought;

Deciding what type of questionnaire should be used;

First draft of questionnaire, and

Editing the questionnaire and specifying procedures for its use. Consequently,

care was taken to ensure that the information collected on implementation of

computerization of the performance based payroll system, for example was

relevant to the subject under consideration and that the responses received to

each question was the type elicited.

3.5 METHOD OF DATA COLLECTION

3.5.1 INTERVIEW

During requirements gathering stage, I conduct an interview with the manager

of HEALING STREAM LABORATORY, who gave the resources about the

flow of the current system and the process of computing the salaries,

monitoring and timekeeping of the employees.

3.5.1OBSERVATION

I had some inspection regarding the current system to gather more ideas on

how to design our proposed system. From this observation, I noted some

problems being encountered.

3.5.2 INTERNET RESEARCH

I also conduct an internet research to gather more data and topics that

are related to my study.

3.5.2 LIBRARY RESEARCH

I also used library materials like thesis documentation and books that are

related to my study in gathering significant information and validation of the

study.

3.5.3 QUESTIONNAIRE

A total of 30 respondents completed and retuned the questionnaire. However,

15 filled and returned questionnaires were picked randomly from the bulk for

the for analytical purposes. The questionnaires collected from the respondents

were used for the analysis.

3.6 METHOD OF DATA ANALYSIS

 From the results of observations the proponent found several weaknesses and

shortcomings in the system that is concurrent running, the weakness and

shortcomings can be seen in Table 1:

Current Evaluation System

S/N PROBLEM Department Solution

1 The process of attendance Employee Finance Make a
carried out still uses paper department computerized
proceeds a lack of effectiveness presence that
in the presence and calculation
can recap
of overtime hours.
presence
2 The attendance process and Finance Creating a
payroll are still done separately. system and
Department integrate it
attendance and
payroll.
3 Lack of variable input process Finance Creating a
in payroll, where inputting Department system that has
payroll variables are still done been
manually. automatically
inputted.

CHAPTER FOUR
4.0 ANALYSIS, PRESENTATION OF DATA AND DISCUSSING OF
FINDINGS
4.1 INTRODUCTION
 This chapter presents the data gathered through the research instruments. These

data are analyzed and statistically treated in order to derive interpretations and

inferences. The data are presented in accordance with the statement of the specific

problem.

4.2 ANALYSIS OF DATA

S/N PROBLEM Department Solution

1 The process of attendance Employee Make a computerized
carried out still uses paper Finance presence that can recap
proceeds a lack of department presence
effectiveness in the
presence and calculation
of overtime hours.
2 The attendance process Finance Creating a system and
and payroll are still done integrate it attendance
separately. Department and payroll.
3 Lack of variable input Finance Creating a system that
process in payroll, where Department has been
inputting payroll variables automaticallyinputted.
are still done manually.

4.3 PRESENTATION OF DATA

The analytical tools in conducting the proposed study were the Context Diagram,

Data Flow Diagram, System flowchart, HIPO (Hierarchical Input-Process-Output)

and VTOC (Visual Table of Contents).

4.3.0 Context Diagram: It is a data flow diagram, with only one

massive central process that subsumes everything inside the scope
 of the system. It shows how the system will receive and send data
flows to the external entities involved. The context diagram shows
how the main scope of the system wherein the employee will login
and the system will read the information entered by the employee.
The human resources manage the employee’s details including the
reports coming from the accountant who computes payroll
transaction that will reflect on employee’s payslip.Elaborated. It also
shows what kinds of data will be input to and output from the
system, where the data will come from and go to, and where the
data will be stored.

Transaction payroll Report

Performance Based
Payroll System/
Timekeeping and
finger print computation of
Employee
payment by work Human Resources
hour. E- Profile

Invalid finger print/password Tax details

Feedback

Login Employee detail P-details

 Accountant
Figure 2.0

4.3.1 Data flow diagram: Data Flow Diagram. It is a graphical

representation of the "flow" of data through an information system,
modeling its process aspects. Often they are a preliminary step
used to create an overview of the system which can later be show
the step by step procedure that is more complicated on how the
system will works for example, an employee registers and it will
validate the fingerprint automatically, the input information going
through the database that computes the time record, gross pay and
net pay that generates the deduction one by one. It is much easier
compared to the manual procedure which is time consuming.
 Invalid Fingerprint

Employee Attendance Record

1
D1 Employee File
Fingerprint
Employee
Validate
Fingerprint Employee Record Employee Details

D2 Deduction File 67
Computed Deductions
(SSS, Pag-Ibig, PhilHealth ,
WithHolding Tax) Add
Employee

Computed Gross Pay

2
Employee Details

Compute
Gross Pay
Accountant/ Admin
Computed Gross Pay

Deduction Tables Employee File

D3 D1 D2 Deduction File
(SSS, PhilHealth, Pag-Ibig)
3 Employee Attendance Record Deduction Detail

SSS, Pag-Ibig,
Payslip Details 5
PhilHealth Deduction 4
Compute (Employee record, Deduction
Details)
Net Pay Computed payroll
(Net pay, Deductions) Generate
Generate
payroll
Payslip
Report
Computed Payroll
(net pay deductions)
Payroll Payroll
Payslip
Report Report

D1 Employee File Employee Admin Accountant

Employee Details

Deduction Details
7 D2 Deduction File
SSS, Pag-Ibig, PhilHealth
Deduction
Update D3 Deduction
(SSS, Pag-Ibig, PhilHealth)
Deduction or
Withholding Tax
Employee D4 Withholding Tax
Files

Deduction details,
Employee details
SSS, Pag-Ibig, PhilHealth
Deduction

Admin/Accountant

Figure 4.3.1

4.3.2 System Flowchart: It is the graphical representation of the flow of

data in the system, and represents the work process of the system.
Information system flowchart show how data flows from source
documents through the computer to final distribution to users.
Program flowcharts show the sequence of instructions in a single
program or subroutine. It shows the flow of the payroll system were
 the human resources is in charge in adding new employee
information including editing, deleting and set of salary for every
employee. The user allows all the employee to register their finger
print for their time log, the system will have a transaction were it
will show all the computation of payroll and generate the reports for
the employee unlike the existing system of Blanco family academy it
is more sophisticated when it comes into computation and filling
the records of each employee. It will be efficient for the user to use if
the system is more accurate and fast when it comes into preparing
the payroll of employee.

Enter New
Human Time Timesheet
Add Employee Employee Employee
Resources In & Out
information

Calculate
Set Basic Retrieve Old Finger Print Reports
Total hours
Salary Employee Record Registration
of worked

Calculating Calculating all

Scanning
Allowances Payroll the Earnings
Finger Print
Processess and Deductions

Deductions
Payslip
and Timekeeping Payslip
Loans And
Payroll

Employees

Figure 4.3.2
4.3.3 Hierarchy plus Input-Process-Output): HIPO (technique is a tool for

planning and/or documenting a computer program. A HIPO model

consists of a hierarchy chart that graphically represents the

program’s control structure and a set of IPO (Input-Process-Output)

charts that describe the inputs to, the outputs from, and the

functions (or processes) performed by each module on the hierarchy

chart. Hierarchical Input process output is similar to vtoc where it

shows the module needed by the system. The process on how the

data has been entered and how it’s being process will show its

output or results.
 Add, Edit, Delete, New employee record
Employee Management Search Employee & added
set salary
Search employee, set
name of finger to be New employee finger
Finger Print
scan print record added
Registration
Retrieves e-in and out
Attendance Attendance/Daily time
Monitoring record
Search employee,
schedule employee
general payroll
Payroll Transaction Payslip Report
Setting the loan type,
amount and payment New added to
Loan period employee record
Set the leave date for
employee New leave added to
Leave employee
Generate Reports for
Report payslip Taxes and
New holiday record
timesheet
added

Set Holiday
Holiday User privilege update

Access Control Privilege to access Summary report

some operation

Figure 4.3.3
4.3.5 VTOC or Visual Table of Contents: It is an analytical tool for

planning and/or documenting a computer program. Each function

represented by a rectangular box can be described in further detail

in an IPO (or input-process-output) diagram. It also show the scope

of the system were the module are connected.

VTOC shows every module of the system, their module contains the

form where it reflects on how the modules are connected and every

form represents the detailed information of every module at it is

arranged through tables.

1.0
Timekeeping and
Payroll System

1.1 1.2 1.3 1.4

1.5
Employee Finger Print Attendance Payroll
Loan
Management Registration Monitoring Transaction

1.9
1.6 1.7 1.8
Access
Leave Holiday Reports
Control

Figure 4.3.4

4.3.6 ERD or Entity-Relation Diagram: is a specialized graphic that

illustrates the relationships between entities in a database. ER

diagrams often use symbols to represent three different types of

information. Boxes are commonly used to represent entities.

Diamonds are normally used to represent relationships and ovals

are used to represent attributes. ERD is used to see the relationship

of different entity in the system

The entity relationship diagram shows the relations of entities or

the user of the system on how he/she does the process, you will see

the flow where the user is connected to what he/she does. Example

is the input of registrations in filling the records of every employee

to the computation of salary deduction and to distribution of

employee’
 Age
Address Status
Empname Position DeptID DeptName
EmployeeID Division

Works
Admin Register Employee Department
For

EmployeeID Name

File Record Has

Date

Time In & Out Daily Time

Record Position
Department

Position
PositionID PositionName

Goes
To

Distributes
Accountant
Payslip

Employees Computes Deduction Determine

EmployeeID Name Department

Employee’s Loans
Salary &
Taxes

PagIBIG

ITW (BIR) Gross Pay

PhilHealth Net Pay

SSS

Figure 4.3.5
4.4 DISCUSSION OF FINDINGS

The Employees of HEALING STREAM LABORATORY

respondents’ in terms of gender and age to answer the survey form

to express the situation in their time keeping and payroll.

Percentage Distribution

Percentage and frequency of distribution were used to describe the

profile of the respondents of the study in terms of age, gender and

profession using time keeping and payroll system, and if they were

the users, administrator or field expertise on this system; this is

solved by the formula: (Probability Statistics for scientist and

Engineer, 7th edition, Walpale Myer)

Percentage (%) = (f / n) * 100

Where:

P- Percentage distribution

f- Scores in the distribution

n- Number of respondents
 Distribution of Respondents in Terms of Gender

Gender Employee % Rank

s
Male 1 45% 2
Female 2 55% 1
Total 60 100%
Table 2

In Table shows the distribution of SOFTOUCH

DESIGNSemployees respondents in terms of gender. It can be seen

from this figure that 55% of the respondents are female with a

frequency of 11. On the other hand, 45% of the respondents are

male with a frequency of 9. It appears therefore that there are more

female respondents than the male respondents.

Distribution of Respondents in Terms of Age

 Age Employees % Rank
20-30 1 40% 1
31 and Above 2 60% 2
Total 60 100%
Table 3

Table shows the frequency of the respondents’ profile in terms

of age. The figure shows that majority is 60% of the respondents are

aged 20-30 years. Next age reveals with a percentage of 40% were

respondents whose ages were 31 and above years old.

Question no. 1: Are you satisfied in your current Time keeping

system using manual system?

Distribution of the Respondents in Terms of

Satisfaction of using Bundy clock in their time keeping

Male Femal

e
 Yes 1 3 60%
No 0 0 40%
Total 24 36 60 100%
Table 4

Table shows the distribution of the respondents’ in terms of

satisfaction of Employees in using Bundy clock in their time

keeping. It can be seen from the data that 60% of the employees’

respondents says yes, that they satisfied of using Bundy clock in

their time keeping, on the other hand 20% says no, that they are

not satisfied of using Bundy clock in their time keeping.

Question no. 2: Do you want to change your current time keeping

and payroll system in computer time keeping and payroll system

using biometrics?

Distribution of the Respondents in Terms of Upgrading in

Computerize time keeping and Payroll

Male Female
Yes 1 2 60%
No 0 0 20%
Total 24 36 60 800%
Table 5
 Table shows the distribution of the respondents’ in terms of

Upgrading in Computerize time keeping and Payroll. It can be seen

from the data that 60% of the employees’ respondents says yes,

they want to upgrade their current time keeping and payroll system

into computerize time keeping and Payroll, on the other hand 20%

says no, they don’t want to upgrade their current time keeping and

payroll system into computerize time keeping and Payroll.

Question no. 3: Do you think using computerized system is more

accurate than using usual paper record?
Distribution of the Respondents in Terms of biometrics is

more accurate than using the usual time card.

Male Female
Yes 1 2 60%
No 0 0 20%
Total 24 36 6 80%

0
Table 6

Table shows the distribution of the respondents’ in terms of

Biometrics is more accurate than using usual time card. It can be

seen from the data that 95% of the employees’ respondents says
yes, Biometrics is more accurate than using usual time card, on the

other hand 5% says no, using usual time card is more accurate

than Biometrics.

Question no. 4: Do you agree that implementing the proposed

system to your company would lessen the fraud committed by some

of the employees?

Distribution of the Respondents in Terms of proposed

system would lessen the fraud committed by some of the

employees.

Male Female
Yes 24 35 60%
No 0 1 40%
Total 24 36 60 100%
Table 7

Table shows the distribution of the respondents’ in terms of

proposed system would lessen the fraud committed by some of the

employees. It can be seen from the data that 95% of the employees’

respondents says yes, proposed system would lessen the fraud

committed by some of the employees, on the other hand 5% says

no, proposed system would not lessen the fraud committed by some

of the employees.

Question no. 5: Do you think that the proposed system will

optimized the process of the company in computing wages and time

keeping?

Distribution of the Respondents in Terms of proposed

system will optimized the process in computing wages and

time keeping.

Male Female
Yes 1 2 60%
No 0 0 40%
Total 24 36 6 100%

0
Table 8

Table shows the distribution of the respondents’ in terms of

proposed system will optimize the process of the company in

computing wages and time keeping. It can be seen from the data

that 100% of all employees’ respondents says yes, proposed system

will optimized the process of the company in computing wages and

time keeping.
 The table illustrates the user evaluation results according to

the respondents’ category; the computed weighted mean for

Correctness corresponds to a 2.60 average which is interpreted as

Average. On the other hand the computed weighted mean for

Reliability category is 2.70 which describe the analysis as Average.

A 2.50 weighted mean is seen on the Efficiency category that

equates to the interpretation of Average, 2.30 weighted mean is

shown on the Testability describe as Poor category and 2.60 for

Portability which equates to Average. The total computed weighted

mean for the user evaluation result is 2.54 which describes as the

overall computed mean as Average. From the tabulated result, the

level of efficiency of the existing system evaluated is Average.

4.5 SYSTEM REQIUREMENTS

4.5.0 Hardware Requirement

This is the aspect concerned with the physical components of the computer needed

for the effective operation of the new system.

The hardware minimum recommended requirements and maximum

recommended requirements are listed below:
 Minimum Maximum
Hardware Recommended Recommended
Requirements Requirements
Internal Memory 2.00 GB 3.00 GB or Higher
(RAM)
Hard Disk Capacity 60.00GB 80.00GB or Higher
(CPU)
Processor Intel Pentium Pentium (R) Dual Core
1.60GHZ 2.20 GHZ or Higher
Monitor 17” Colored 32bit 18 ” Colored or Higher
32bit
Monitor 17” Colored 32bit 18 ” Colored or
Higher 32bit
Video Card 128MB AGP 256 MB AGP
or Higher
Biometrics Digital Persona Digital Persona
uRu uRu Latest
Version
Table 9: Hardware Requirements

4.5.1 Software Requirement

This aspect specifies the various events the proposed system would be able to
perform from the user’s perspective in order to ensure a good and working system.
The software minimum recommended requirements and maximum
recommended requirements are listed below:
 Software Minimum Maximum
Recommended Recommended
Requirements Requirements
System type Microsoft Win7 or XP Microsoft Win7 64bit
32bit Operating Operating System
System
Database MS Access 20013 MS Access 2007
Programming Microsoft Visual Microsoft Visual
Language Studio 20010 Studio 2015

Table 10: Software Requirements

4.6 MODULES DESCRIPTION AND IMPLEMENTATION.

Below are the description and implementation of each frame (module) and dialogs

(sub modules) in class salaries as contained in the program:

Welcome Module:This module allows users to login and have access options in

order to be able to access other modules as related to individual user. The payroll

administrator login his/her username as contained in the database in order to be

able to edit records in the database, In this same module the salary officers and the

staffs also login their username and password in order to be able to view and print

reports and compute net pay respectively. To login, click on the username and

password text field and type in the username and password respectively, then click

on the ok button to login.

Menu Module: This is the module for users who login as salary officers and this is

where the actual payroll computation is done. When users login in this module,

they will be able to perform different tasks such as viewing and printing of reports

and computing of the salaries.

ACTIVITY AND TIME READING MODULE: In this module, the employee

logs in by clicking on the check-in time button, once it’s been verified by the

system, the timer start timing the employee. Two things may cause timer to stop

timing the employee:

1. If the employee go for a break: at this time the timer stop timing the employee

because he/she is not on duty, once he’s back the timer continue timing the

employee again as the employee clicks on the start button.

2. If employee’s work for the day is done, the timer will stop and the system will

automatically record the employee’s work hours and times(x) it by unit pay per

hour and generate attendance for the specified employee and save the record into

database.

Payroll Sub Module: This is contained in the menu module. This is where the

actual payroll process takes place. To compute salaries, click on paydetail, payroll

and then the payroll page comes up. The salary officer enters the employee details

to verify if he/she actually come to work for that particular day, if it verified, it will

take him to the database to check on the list of employee records, and perform
some computations, after computing, the salary officer will enter the bank details

of the specified employee and transfer the money to the employee bank account.

Payroll Administrator Module: Only the payroll administrator has access into

this module and this is where records can be edited and updated. When the payroll

administrator login his/her username and password in the login menu, the program

automatically brings the administrator to this admin module and it is from this

module that other sub modules such as Personnel Adjustment, Percentage

Allocation, and Update Basic Salaries can be viewed and worked on.

Personnel Adjustment Sub Module: It is from this module that the payroll

administrator will be able to add the records of new employees search and delete

existing record of employees. To add the record of a new employee, enter data into

the text fields and click on new button, to delete an existing record, enter the

staffId and click on search button to bring out details of the particular employee to

be deleted and then click on delete button to delete the record.

Percentage Allocation Sub Module: This is interface where changes in

percentage used on basic salary will be entered into the percentage table in the

database.

To change the percentages used, click on activate button to activate the fields and

then enter into the fields the new percentages and click on save to reflect changes

in the percentage table in the database.

Update Basic Salaries Sub Module: This interface is made available in order to

make the system flexible in that when changes are made to the basic salaries, it

will be reflected from this interface and then saved into the database as the new

basic salary value for all grade levels and steps. To update basic salary table, click

on activate button to activate the fields and then enter into the fields the new values

for the basic salaries, then click on the update button to update the basic salary

table in the basic salary table in the database.

Staffs Module: This is the module that allows staffs to be able to view their report.

To view report, enter staffid, staff name, grade level and step and then click on

search button to view records as pertaining to the indicated staff.

ConnectDB Modules: This is the database class that connects all the programs

with the database.

4.4 CHOICE OF PROGRAMMING LANGUAG

Visual Basic.Net is used for the implementation of this application and this is

because of its rich features and these include the following among others:

 Has many in built functions

 Easy manipulation

 Flexibility
  It is a high programming language

 It is an object oriented programming language

 It supports network and web applications

 It is a cross platform programming language

 Its functions and controls are designed to easily facilitate programming

CHAPTER FIVE

5.0 SUMMARY, CONCLUSION AND RECOMMENDATION

5.1 SUMMARY
Developing a system requires the system developer to meet the user requirements

of the proposed system and as a result of this, the developer must fully understand

what the problems are, understand the people for whom he/she is designing the

system for in order for the system to communicate effectively.

5.2 CONCLUSION

The development of this application software is to help solve problems associated

with the existing system and this has been achievable to an extent. The merits of

the new system outweigh the advantages (if any) of the existing system. It does not
only provide automation, it has also replaced the traditional cabinet file storage

method that deals with a lot of paper work thereby, allowing ease in the storing,

handling and retrieval of data in a dynamic way.

In concluding this project, I would like to highlight areas for future development

and these include:

 Reviewing of this project work to see what has been done and then look out

for what the project should have accomplished that has not been

implemented in it for those who desire to continue on this project.

 Furthermore, certain features must be included in the system in order to

justify improvements on the current version and this include putting in place

a multi-user system that allows for use in a network environment so that

information can be made available in all other company as well other parts

of the organization under study.

5.3 RECOMMENDATION

Considering the rate of technological development in our society today, any

organization that want to remain in the forefront of today’s competitive market is

left with no choice than to computerize the manual system that are operational in

their organization.

Other recommendations include:

  Putting in place computers and other peripherals that would allow the usage

of the system.

 A good training background for the users of the system in order to

familiarize with the software.

 A recovery/back up must be in place.

 Lastly, adequate environmental security must be provided ,,for the

confidentiality of information

REFERENCES

1. Jeffrey L.Whitten, Lonnie D.Bentley and Kevin D.Dittman (2001). System

Analysis and DesignMethods.New York, Irwin/McGraw-Hill, Fifth Edition,

pp13, 479.

2. Simon Bennet, Steve McRobb and RayFarmer (2002). Object Oriented

Systems Analysis and Design Using UML, Maiden: McGraw-Hill, Second

Edition, pp301, 321.

3. J.L.Boockhdt (1999) Accounting Information Systems-Transaction

Processing and Controls.United States of America, Irwin/McGraw-Hill, pp

673-674.
 4. David H.Weaver, Edward B. Bruner, James.M.Smiley and Virginia A. Rose

(1988). Accounting Systems and Procedures. United States of America,

McGraw-Hill, Fifth Edition, pp 443-449.

5. Gregory E.Anders, Emmajo Spiegel berg and Sally Nelson (2002).

Microcomputer Accounting-Tutorial and Applications. United States of

America, Glencoe/McGraw-Hill, pp196-197.

6. Mark Priestley (2003) Practical Object-Oriented Design With UML. New

York. McGraw-Hill. Second Edition, pp330-333.

7. Myrvin F. Chester, Avtar.K. Athwall (2002). Introduction to Basic

Information Systems Analysis and Design .New York. McGraw-Hill, pp

212.

8. Payroll, Wikipedia the free encyclopedia.htm, 2006. www.alltheweb.com.

Bibliography

A. Books

Steven bragg, “Accounting for Payroll” page 42-48, 2004

Walpale Myer, “Probability Statistics for scientist and Engineer”, 7th

edition,

B. Journals and Magazines

Philippine National Police: “Biometrics Technology to be Implemented in

PNP”,Philippine Inquirer, 2009.

Mendrz, Andrew: “Vision Designer Inc.”, 2010

 Floran, Ramon: “The Computer Edge of the New Employment and

Opportunities”, Philippine Daily Inquirer, Page 14, October 2005.

Primer, Thomas: “Automated Computerize Process” Readers Digest

magazine, page 45, May 2005.

Better Humans: “Sweet FingerPrint”, 2003

Watson: “ESVES Biometrics System”, 2011

Johnson: “Modern Computer Accelerates”, 1994

C. Unpublished Materials (Theses)

Aquilan, John: “Automation of time attendance System”, Technological

Institute of the Philipines, Cubao Quezon City, March 2004.

Cantoma, Andrea: “Computer Library System for St. James Academy”

Technological Institute of the Philipines, Cubao Quezon City, March 2004.

Computer Engineers: “Computerized Daily Time Record System”,

Technological Institute of the Philipines, Cubao Quezon City, August 2007.

Olivar: “Biometrics Attendance Record System”, University of the East,

Manila, March 2001.

D. Electronic Sources
http://www.scribd.com/doc/45262822/Thesis-1-4-ted

Wikipedia: Terminologies

Http://Wikipedia.org