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Review of Related Studies and Literature CONCEPTUAL LITERATURE Payroll System is a flexible compensation administration solution. It is designed to help human resource professionals as well as finance and accounting personnel to manage employee compensation, deductions, allowances, and benefits in an organization. The system is integrated with the Employee Information System, offers efficient features and functionality to manage company's expenses. (www.blastasia.com) Payroll is an application that lends itself well to the computer because of its repetitive procedures and calculation. A Computerized payroll system can perform the same basic function as those performed manually by payroll clerk. The important differences are the computer’s speed, accuracy, reliability, and ability to easily generate reports. In a computerized payroll system, the computer stores data such as an employee’s name, address, social security number, marital status, number of withholding allowances, pay rate and voluntary deductions. At the end of each pay period, the operator enters all payroll transaction data, such as regular and overtime hours for each employee and deduction into the computer. The computer calculates all withholding taxes and other deductions and accumulates and updates the earnings and withholdings. (Www.wadsworth.com

Local Study Andrew Mendrez (2007) a programmer, made a similar study for Vision Designer Inc. It has an identification machine aimed at verifying a person entering through the swiping of identification cards. After entering their given code number, the identification cards are swiped in the machines card reader to trigger the verification. If access granted the micro switch will then automatically unlock to allow enter. This will help a lot in monitoring attendances accurately and more precise. A group of computer engineers in Rebisco Biscuits Corporation, August 2007 proposed a thesis report entitled “Computerized Daily Time Record System” for what is the same Innodata Corps is implementing right now a computerized daily time record as an alternative for Bundy clock. The means of getting inside the company premises is by swiping cards into a machine that reads every record of each employee then monitor and displays the time a particular employee logs in and out. In the 2005 annual report of the Forest Products AdResearch and

Development Institute under the Department of Science and Technology, it is said that “The computerized database and attendance on Forest Production Research and Development Institute was designed to facilitate the Institutes was designed to facilitate the Institute’s data entry, Progressing computation maintenance of employee time and attendance transactions. The system allows employees to log in/out as the swipe their ID’s through a barcode reader attached to a computer terminal. The processing forms include those for legal holidays, travel order, tardiness, under time, vacation and sick leave. Pertinent Report forms have been designed for easier access to all these data.” According to Olivar (2010), “Payroll System is heart of Human Resource System of an Organization”. The solution has to take care of calculation of the salary as per rules of the Company, Income-Tax calculation and various deductions to be done from salary based on the daily time record using the “Biometric Attendance Record System” including statutory deductions like Income Tax and Provident Fund deductions. Another study, the main focus of the system should handle employee’s records such as Employee List, Add New Employee, Edit New Employee, Attendance, Bonus and Pay slip for the administrator. Local Literature Cagayan de Oro City Hall Computerized Payroll System The City Accounting Department has introduced an upgraded computerized payroll system for permanent employees in a bid to improve its services and maximize resources. "This project, which was conceived two years ago, basically aims to improve our services particularly in the processing of payrolls for permanent employees," City Accountant Wilma Polley-Rugay told payroll in-charge of the different departments and offices at City Hall during a briefing and orientation on the concept of the one-month payroll system held Friday last week at the City Council session hall in Cagayan de Oro City. With the added features of the new computerized payroll system, Rugay said the preparation, processing and payment of payroll system to permanent employees would be hastened and fast-tracked. Adopting of the one-month payroll system is also beneficial, not only to the City Accounting Department, but also to the payroll-in-charge as it would save time, energy and resources. “Employees who handle payroll preparation and processing can now attend to other office needs and concerns as the new payroll system will lessen their workload," she added.

Under the new payroll system, preparation and processing of payroll, which reflects the accrued, amount payable every 15th and 30th day of the month, done only once. Unlike the time-consuming old payroll system, preparation and processing of payroll is done twice a month covering the first half and second half of the month. (www.sunstar.com.ph) Computerized Payroll System of Department of Health (DOH)The Computerized Payroll System is a window based program especially designed to facilitate and simplify the monthly preparation of general payroll and related reports such as Standard computerized payroll system for use in all DOH offices, Allows faster and more accurate computation of monthly gross income, deductions and net salary, Faster and less-resource-consuming generation of General Payroll and other payroll related reports, Security and integrity of payroll data and information. The Features of computerized payroll system of DOH are Graphical User Interface, Interactive and menu-driven program, Systematic maintenance and retrieval of employee records, Flexible as it provides options to include additional fields for other compensation and deductions unique to an office or unit, Automatic computation of monthly net income, GSIS, PAG-IBIG, Withholding Tax and other deductions, Y2K compliant, Fast and easy generation of the General Payroll and all other payroll related reports which include Monthly reports like GSIS and PAG-IBIG remittances, Denominations Report and Leave Credits Report and annual Year-end Tax Reports, Password security to ensure the integrity of data. General payroll reports such as Payroll Summary sheet, Pay slip, Leave Credits Report, Withholding Tax Statement (W-2), BIR Remittance Reports, GSIS Remittance Reports, PAG-IBIG Remittance Reports, Other User-defined Reports (PERA, ACA, PNB, etc..). (www2.doh.gov.ph) The proponents learned from this study that the Cagayan de oro and Department of Health has its own database for their employees. They stored the information of the employees to the database that represent each employee’s records as a separate persistent object. 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 mutilatedbodies 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 2011 Paranaque 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 latercomers, 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. AHNEX Builders Network – Based Payroll SystemDayrit, 2007 AHNEX Builder Network – Based Payroll System was designed for the newly set-up AHNEX Builders. The company is currently using Microsoft Excel in computing net pay which is time consuming. This proposed system will help in the work of the users in an easier process. Visual basic 6, Microsoft Access, and Crystal Report 9 were used for designing and creating the system. This was designed to meet the requirements of the c o m p a n y f o r a b e t t e r a n d m o r e enhanced system. Keeping track of record of employees, computing the salary and wages of each employee and generating reports were included in the proposed system. This automatically computes the basic pay of each employee. Contributions like PAG-IBIG, Phil health, withholding taxes were also included in computing the payroll. The main objective of the proposed system was to develop a system in a more accurate efficient and secured data. The proponent’s would like to help the management and accountant for well-organized and efficient payroll. T h e proponents found out that computerization of the payroll p r o c e s s o f a l l p a y r o l l transactions in the company including the maintenance module are feasible. The related literature a b o u t A H N E X Builders’ payroll showed a common problem. They use Microsoft E x c e l i n computing net pay that makes the computations time consuming. The proponents are to design a system that generates report, keeps track of files and information, and computes employees’monthly salary. The proposed system includes the deductions of withholding tax and GSIS contributions/remittances. JBC Engineering specialist’s Payroll SystemA. Reyes, 2000 JBC Engineering specialist’s Payroll System was created by the proponents in order for the company to have a better way in computing their payroll. The proponents were able to modernize their system by computerizing their manual tasks such as record keeping an dcomputing their payroll. A database was added to the system so that the

company would not have to rely on papers to store valuable information about an employee. The database system interfaces with an operating system to setup, update and retrieve data items from a database organized as single logical and physical unit. This also helps them track of the progress of an employee. Another advantage of the new payroll system is in generating the payroll slips, which is printed out by the computer. The payroll slip contains all the information on how the computation arrives on the Net Pay amount an employee receives. The system also boasts of security maintenance so that only limited a person is given access to the files. The proponents’main objective in developing the system is to make the company’s current manual system better and more efficient with the use of computer. “The proponents created a computerized payroll system that will add a database into the system which is likely the same as with JBC Engineering s p e c i a l i s t ’ s P a y r o l l S y s t e m . T h e system lessens the use of paper outputs and paper filings. The proponents created a database they c a n easily be selected, inserted, updated and deleted, so maintaining their system will be a breeze. They added a print friendly reports generated through the system like pay slip f o r example. Included in the system is the security module that gives access to the priority user of the system and that a certain user will have featured designated to him. Network Based Payroll for Citimotors Las PiñasL. Gawaran, 2007 The current payroll system of Citimotors Las Piñas is prepared manually. Noticeably, it has an array of disadvantages. That is why a NetworkBased payroll system for the CitimotorsLas Piñas was proposed to facilitate fast and easy preparation of its payroll. The proponents made sure that the system would be user friendly. It assures that its features and functions are simple hence, easy to understand. But it boasts of security maintenance that ensures limited and regulated accessibility. Furthermore, the proponents’ objective is to make the company’s current system more efficient with the aid of the computer technology. T h e proponents developed a system that is a network based payroll s y s t e m t h a t w i l l link/network 3 offices that handle the whole payroll processes namely the HRMO, Treasury Office, and the Accounting Office so that it will be easy for the 3 offices to transfer

informationa n d f i l e s . I n c o m p a r i s o n w i t h t h e s y s t e m d o n e b y J . G a w a r a n , t h e p r o p o s e d s y s t e m i s a network based feature and its design is developed with a user-friendly interface and has all the features that meet the specific need of the company. Accessing the system will be easy to give an efficient help. Dasmariñas Municipality Payroll System L. Lardizabal, 2005 The Dasmariñas Municipality Payroll System (DMPS) was designed to a d d r e s s t h e existing inefficiency and inaccuracy of its present system. There are problems encountered like loss of files and data, slow process of salary computation, difficulty in retrieving and maintaining of records, vulnerability of the data to be lost or misused, and overall security of the payroll p r o c e s s . T h e m a i n o b j e c t i v e o f t h e D M P S w a s t o p r o v i d e t h e m u n i c i p a l i t y w i t h a m o r e convenient and more reliable syst em of recording, storing, and retrieval of data needed toefficient ly run the payroll of the employees correctly and accurately. T h e a d v a n t a g e o f t h e system is to set up, update and retrieve data items from organized database. Another advantage of the new payroll system is generating the payroll report slips and other forms included in thes y s t e m , w h i c h w i l l b e p r i n t e d o u t b y t h e c o m p u t e r . T h e s y s t e m a l s o b o a s t s o f s e c u r i t y maintenance so that authorized people will only be given access to the files. The language used in making the system was Visual Basic 6.0. The proponents made sure that the system would be userfriendly, making the municipality’s current system better and more efficient with the use of the computer. The proponents’ study focuses on Noveleta Municipality payroll system. In comparisonw i t h D a s m a r i ñ a s M u n i c i p a l i t y P a y r o l l s y s t e m , t h e s y s t e m c r e a t e d w a s f r o m m a n u a l t o computerized system. The proponents created a reliable, secured and convenient payroll system from a manual system for a government office need to have this kind of system so that they can give additional focus on more important activities to be transacted. The system created by Lardizabal shows common problems with the proposed system that are normally experienced from a manual system such as loss of files and data, slow process of salary computation and difficulty in retrieving and maintaining records,

vulnerability of the data to be lost or misused, and overall security of the payroll process. Security is a main function because the information in the system should be kept in its confidentiality Foreign Study The KPPayroll(2008) is a complete payroll solution in human resource needs.It provides automatic calculation of CPF Contribution and other liabilities, while also compiling and printing the IR8A and the CPF Payment Advice. Bank GIRO transfer features are also included with the program. Below are some features for the KPPayrollsystem: a. Easy navigation to all features of the program. b. Multi-level password protection, plus built-in backup and restore. c. Track personnel information including start and termination dates as well as salary reviews, annual leave and sick time. d. Tracks and automatically calculates statutory requirements such as CPF contributions, Donations and SDF. e. Supports multiple pay frequencies including daily, weekly, semi-monthly and monthly. f. Calculates earnings, deductions and liabilities for all payroll frequencies. g. Performs salary pro-ration. h. Auto compute for no pay leave. 1. Handles unlimited earnings and deductions pay codes. J.Generatevacation,sick,bonusorcommissionpaywithorwithoutgeneratingregularpay. k. Performs after-the-fact, irregular ,and nonstandard payrolls.

Columbia State Community (2006) uses computer identification account (Log In Name and Password) for access to the institutions

computer usage logs occurs electrically through the individual users log in/out process. Users are also informed that they are responsible for any computer file’s, database and/or internet sites that are accessed through their computer identification account, notwithstanding their failure to adhere to the log in/out process, on their voluntary publication of their account information to others. My Time Force (2006), It is a software-based time and attendance system that allows the user to collect and organize employee time data simply and accurately. You can use Time Force to easily and efficiently track your employee time, manage your time & attendance data and employee profiles, eliminate buddy punching, make employee scheduling a breeze Best of all, Time Force can quickly pay for itself in time savings,reduction of time theft and elimination of payroll errors. Time Force is the manifestation of 10years of experience, customer feedback, and research and development in the time and attendance market. Over 35,000 businesses use Time Force. Johnson (1994) said, since modern computer accelerates work and keeps track of information accurately and promptly, it’s only natural that industry needs the services of computer and the modern technology devices for great help and improvement.

Foreign Literature Titus Information Payroll System A Payroll System designed to produce payroll checks with appropriate withholdings, benefits, allowances, and deductions for employees in multiple companies, departments, and/or sub-departments. It has been designed to handle up to 1,000,000 employees in 100 companies, 1,000 departments in each company, and 36 sub-departments in each department. Some of the features and benefits of the Payroll System are multiple cost centres for payroll reporting, will handle special non-taxable benefits for ministers, flexible withholding capability, ability to split payroll expense between different cost centres, complete governmental reporting; FICA, FUTA, SUTA, Workman's Compensation, W-2's, and 1099's, Payroll check reversal, One check capability, Salaried, hourly, and contract employees in the same payroll run, Combined processing for weekly, bi-weekly, semi-monthly, or monthly, Taxable and non-taxable benefits and deductions, Multiple hourly rates for

each employee, General ledger interface, Check list UFD file for check reconciliation, Extensive personnel information for each employee, Accrual of sick, vacation, and holiday hours, Flexible federal, state, and local taxation, Multiple company, department, and sub-department capability, Flexible benefit and deduction capability, Easy federal, state, and local tax table maintenance, Split income over multiple companies, departments, subdepartments, Payroll accrual/reversal capabilities, Time card data entry function, Special message function for printing on check stubs. (Www.titusinformationsystems.com)

Canadian Payroll System Sage Accpac Canadian Payroll is a flexible module that gives you complete control over employee earnings and benefits, special payroll situations and government reporting, ensuring that your company's payroll requirements and personnel policies are accurate to the penny. You can enter or import timecards, enter after-the-fact paycheques, run automatic calculations or even combine all three methods to get your pay data into the system and your paycheques deployed on time. Payroll handles all pay frequencies; multiple work states; unlimited earnings, deductions, benefits and taxes; and other pay factors such as expense reimbursements, accruals and advances. (www.2020software.com) 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. 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. Biometric Time Management & Payroll Softwarehttp://www.timetrax.com.pk/#, 2007 TimeTrax is a comprehensive, integrated yet easy to use employee's Time Management Software Suite that enables employees to record their arrival and departure providing managers with detailed information about attendance records, absenteeism, overtime etc. Each individual’s arrival and departure time is recorded automatically via input devices such as Card Readers, Biometric devices or keyboard, depending upon environment and working practices. Following are some of the advanced features that TimeTrax has to offer: Hand geometry, Fingerprint, RFIDand Magnetic swipe card devices integration. Centralized payroll processing is for multiple branches. Track employee attendance from any location, anytime, even from the convenience of your home. Overtime, late arrivals & early departure reports, automatic calculation of hours, leaves, taxes and deductions to generate payroll, shift scheduling & rule based penalties are the features included Just like Biometrics Time Management and Payroll system, the proponents developed a system with a biometrics time management. The employee will time in on a finger print scanner as their Bundy clock and their time will be recorded. The use of DTR is not applicable anymore. In the system, the computation of absences and tardiness will be computerized. Because the daily time management is already computerized the transferring of data is easy to access and compute which proves its feasibility from the Biometric Time Management & Payroll Software.

Spine Payroll (ver9.4.0) Payroll Management Softwarehttp://www.spinetechnologies.com/products/payrollindex.htm, 2004 Spine Payroll is very simple, flexible and user-friendly Payroll Management softwaree s p e c i a l l y f o r I N D I A t h a t t a k e s c a r e o f a l l t h e r e q u i r e m e n t s r e l a t i n g t o a c c o u n t i n g a n d management of employees’ payroll. Spine Payroll stores complete records of the employees, generates Payslips and Attendance Register, computes all allowances and deduct i o n s a n d generates all Statutory and MIS reports. Spine Payroll is only salary processing software with g o o d n o a n d w i d e - i n d u s t r y range of client based in Mumbai, INDIA. It offers very high flexibility in defining various allowances, deductions, leave rules etc. for the employees and all formula for P.F, PF TRUST., F.P.F., E.S.I.C., Profession Tax, Income Tax, etc. are definable and changeable at User's end. The proponents had an idea in the computerization of the payroll. After analysing Spine Payroll, they considered adding complete records of the employees, generating Pay-slips and Attendance Register, computing all allowances and deductions, and generating all reports. Sure Payrollhttp://www.surepayroll.com/default.asp, 2000 Sure Payroll is the best way to eliminate payroll worries. Do you have between 1 and 100e m p l o y e e s ? L e t u s p r o v e o u r p a s s i o n f o r p a y r o l l t o y o u ! A d d y o u r p a y r o l l t o t h e m o r e t h a n 30,000 we process each month. Payroll systems have changed for the better. With online payroll systems, like Sure Payroll, you can log on to our payroll system anytime, anywhere and you'll be done with payroll in minutes. If you'd prefer to focus on growing your small business rather than on the tedious tasks of payroll, consider outsourcing payroll to Sure Payroll’s online service. As the nation's leading supplier of online payroll services, we can help you save time, save money and stay in control of your payroll. Simple, Convenient, Smart. Sure Payroll is the national leader in online payroll processing. We focus exclusively on small business payroll solutions, and we provide a SIMPLE, CONVENIENT and SMART way to process payroll and file taxes.T h i s s y s t e m h a s a c o m m o n a l i t y w i t h t h e p r o p o n e n t s p r o p o s e d s y s t e m i n s t o r i n g employee’s record and ways in processing payroll and deductions. The system also generates Pay slip and attendance Register. The proponents focused on simple and convenient process of computing deduction such as taxes and more. Agile Payroll Systemshttp://www.agilepayroll.com/products.html, 2007

We are building the finest payroll system using state-of-thea r t , p r o v e n M i c r o s o f t technologies. The Agile Payroll System will change your business, helping you to provide the highest level of customer service. Let's face it; there are more than a few payroll systems in the market already. But few were built to address your business needs for scale, efficiency and reliability. We are building our products using the agile software development process that puts both clients and testing, front and center in the development process. Our system design and development are client and test driven to ensure that the resulting applications are flexible, meeto u r c l i e n t s ' r e q u i r e m e n t s a n d a r e o f t h e h i g h e s t q u a l i t y . H e r e a r e s o m e o f t h e advantages we offer: An interface designed by users, efficiency in design that allows you to bem o r e e f f e c t i v e i n y o u r b u s i n e s s , d e v e l o p e d i n , a n d f o r M i c r o s o f t ' s l a t e s t . N e t t e c h n o l o g i e s , reliable, scalable and secure Microsoft SQL database systems, the highest level of quality basedo n m u l t i level testing, a team with years of payroll operations, support an d d e v e l o p m e n t experience and we work with you, as partners to help you succeed. Agile Payroll Systems has similarity with the proposed system in terms of its features. The proponents created a network based payroll system with an effective design for business that is developed in Microsoft .Net application of Microsoft SQL database will address efficiency and reliability. This will be convenient for employee to view their salary particulars including from gross pay, net pay and deductions.