Thesis Documentation(Cagas114)

Pacific Nickel Philippines Inc. Payroll System

A Thesis Presented to the Faculty of the Information Technology Division Surigao State College of Technology Surigao City

By Culentas, Princess Grace N. Ruaza, Kelly Joey A. Tudtud, Cherell D. Villagonzalo, Joan D.

Chapter 1-THE PROBLEM AND A REVIEW OF RELATED LITERATURE

Project Context

As Computer technology nowadays, changes at such time, many businesses factors try to cope up by upgrading computer system constantly in order to stay competitive. The multifunction ability of technology for its advance system is also an important factor for a company to use software. It makes efficient use of the advance technology and has ambition to discover more. Computers have the great impact on on the profession of accounting with the rapid growth of technology today, there is no doubt that computer will become a common asset of all profession.(Google,2012) In a company, payroll is the sum of all financial records of salaries for an employee, wages, bonuses, and deductions. In accounting, payroll refers to the amount paid to employee for services they provided curing a certain period of time. Payroll plays a major role in a company for several reasons. From an accounting perspective, payroll is crucial because payroll and payroll taxes considerably affect the net income of most companies and they are subject to laws and regulations.(Wikipedia, 2012) Pacific Nickel Philippines Inc. is having a specific problem with their system procedd that involved calculations and recording of essential data. For that matter, the proponents decided to build up a system in which it will try to solve this kind of problem. Then, there would be less, efforts to be done and no more unorganized flow of processing. For this reason, the proponents come up with a payroll system that will manipulate the information receive and transmitted to produce an efficient and effective process that can be use by the Pacific Nickel Philippines Inc.

Purpose and Description

The main purpose of the study id to enhance and implement payroll system for Pacific Nickel Philippines Inc. which will operate in a timely and accurate manner to ensure that employees receive their pay checks accordingly. To compute the gross and net wages and salaries of all employees, to produce pay slips and checks. Employees appreciate a timely payroll system as well: it reduces anxiety about receiving checks on time and any anxiety about receiving a check for the wrong amount. The following are the specific objectives of the proposed study:    

To be able to keep and generate accurate reports on employee income. To automatically calculate the check amount based on the hours worked. To be able to do work more easier. To create fast and easy access in processing the records.

Research Objectives

This research is made to aid individuals and the Pacific Nickel Philippines Inc. which is undertaking a time consuming manual process to meet their regulatory requirements and to provide a basis for the initial approaches include in processes of the whole system. It also ensure that it will provide sufficient information for regulatory consultation and decision. The objectives of this research are as follows:  

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Maintain accurate records of employee salaries and wages earned and paid, taxes withheld and other voluntary deductions. To improve the existing system’s services, in order to increase employee and employee satisfaction , provide the quality and create a controlled information management and environment. This would be the primary soured for information about the workings of the proposed payroll system of the Pacific Nickel Philippines Inc. This is design to ensure uniformity and consistency in data collection. To find out what is the salary history of an employee. To develop a system that will eliminate the problem of insufficient and incomplete information.

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To develop a system with an objective of eliminating the running cost by overcoming the continuous stationary expenses, manual storage need and extra staff in the information resource department of the organization. To provide better performance which is manage by providing desired flexibility, fast response, ability to maintain the quality of services.

Significance of the Research

The proponents develop a system for Pacific Nickel Philippines Inc. to make their transactions more reliable and easy to use. The new system will manage employee’s salaries/wages in a safe and efficient manner. To give accurate processing of paychecks and keep and keep accurate management records. This system would directly benefit the following: Manager - The system will help the manager to save a lot of manual work, allowing them to devote more time to other tasks. He is the one in-charge in managing the whole process of the payroll system. Pacific Nickel Philippines Inc. the system will help in saving company’s time in processing payroll and eliminates unnecessary paper works and filing. Accounting Head - They can rely on the system to compute most of their calculations. Employee- the system helps the employee in receiving their wages in time and accurate manner; the employee will be able to ask the employer for a record of their income.

Scope and Limitations

The researcher study focus on designing a payroll system for a Pacific Nickel Philippines Inc. the system study was conducted during the second semester of the SY 2011 -2011 and on the first semester of SY 2011-2013. The system is designed for the enhancement or development of computerized payroll system. Functionalities:  The system can compute the wages of each employee.  The system can keep track of hours, withholding taxes and other deductions.  It can add, edit, delete and search employee records.  The system can update employee’s information as well as the weekly salary, cash advance, and the rate per day and overtime.  It can generate and print pay slip of each employee.

Non-Functionalities:  The system will operate 24 hours but transactions are only allowed during office hours.  The head administrator will be the only one who can manipulate all the records.  It has log-in and log-out process for security purposes.

On the other hand, this study limits only to the proposed enhancement computerized payroll system.

Limitations:  A proposed system which can only be access by authorized person.  It does not support network topology implementation, online program or online transaction.  To find out what is the salary history of an employee.  To develop a system that will eliminate the problem of insufficient and incomplete information.

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To develop a system with an objective of eliminating the running cost by overcoming the continuous stationary expenses, manual storage need, and extra staff in the information resource department of the organization. To provide better performance which is manage by providing desired flexibility, fast response, ability to support changes and ability to maintain the quality of services.

Chapter 2

Review of Related literature The payroll system is used to maintain a list of employee’s name, addresses, and employment information and is used to interactively calculate and print payroll checks employee’s hours are entered and distributed to appropriate department/cost centers. Annualized ax able are then used to automatically compute deductions before the check is printed on the bank stock. Monthly and quarterly reports aroused to prepare tax filings, and provide analytical information. W-2’s can be guaranteed automatically at year-end. Payroll system involves everything that has o do with the payment of employees and the filing of employment taxes. This includes keeping track of hours, calculating wages, withholding taxes, and other deductions, printing and delivering checks and paying employment axes to the government. Payroll systems include any and all types of financial statements that involve the payment of an employee’s, as well as any statements that relate to the filing of employment taxes. Not only are statements included with these types of systems but the actual functions of printing, delivering or electronic transfer of employee’s funds are also included. One of the most important parts of a payroll system is tyo withhold and pa axes from employee’s payroll checks. Four major tax withholdings are required o be withheld from payroll checks: medicine taxes, state and local income taxes, federal income tax and social security ax.(sure payroll, 2010). A computerized payroll system saves time and lowers error ratio. You can enter payroll payment information quicker than with a manual system, and run payroll register’s o double-check your information before printing the checks.(opapres, 2011).

A computerized payroll system is when the employer purchases payroll software and uses it as her means to0 process a payroll system. Some companies hire an in-house payroll system. The payroll staff is responsible for entering all wages to be paid into the system. The system computes the wages, stores payroll information, and print checks. The payroll professional can also access payroll reports, which allows him o check for errors and correct them before he employee receives her paycheck. Computerized payroll system also reduces the amount of paperwork to be filed, as most of the payroll information can be stored in the system.(ehow, 2000). The payroll system is design o 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 o 1,000,000 employees in 100 companies, 1000 departments in each company, and 36 sub-departments in each departments.(TITUS Information System, inc., 2008). A computerized payroll system is typically used by medium to large scale businesses. It saves a lot of time and decreases the chances of generating errors. Of course, as an employer, you wouldn’t want to overpay. With this kind of software, you can input all the payroll info’s and year-end reporting quickly and accurately. It also achieves payslips and annual reports in case you’re going to need them later.(blogspot, 2011). Payroll system reduces employer cost, liability, and administrative burden through integrated solutions. Advantages include:  Flexible and comprehensive solutions that organize, integrate, and simplify complex business process.  Liability reduction through diligent compliance syystems, support and oversight.  Accurate and reliable processing and reporting.  Secure data management and transactions. (payroll-us,2003)

The computerized payroll system save time and money, they’re very easy to use and they’re also very practical. There are different types of payroll software systems, with various features, functions or advantages. And of course, the price will also vary according to the type of software. All programs, however, include essential features for storing employee information, files and track records, and will enable unauthorized user to enter, view or change information anytime. Basic features include paycheck processing, direct deposit options, payroll reports, tax reports, deductions, quarterly and annual ware reports, and many others.(EzineArticle,2012). The payroll system allows to record payroll information per employee including payroll deduction & advances. Payroll deduction are tracked for both employee & employer contributions which allows for automated payroll remittances. The payroll system is tightly integrated to the bank account so that you may process & print pay checks & remittances check. The payroll reporting provides the information required for year- end income reporting,(protractor,2005)

Payroll involves wages or salaries of the employee or the rates paid for nominal time of work, comprising basic wages & salaries, cost-of-living allowances & other guaranteed & regularly paid allowances, it also includes overtime payments, bonuses, family allowances & other social security payments made by the employer directly to employees.(enterprenew Magazine,2010). Payroll system receives & maintains data from employee time cards & other work records. They produce paychecks & other documents such as earning statements, payroll reports, & labor analysis reports. Other reports are also prepared for management & government agencies. Computerbased payroll system help businesses make prompt & accurate payments to their employees, as well as reports to management, employees & government agencies concerning earnings, taxes,& other deductions. They may also provide management with reports analyzing labor costs & productivity.(Intro.to Information system by James A. O’Brien,2008)

Conceptual Framework of the Study Nowadays, technology is highly needed by many companies in order to make certain task in a fast and easy way and manual process should be dominated. As we proposed a system which is entitled the Pacific Nickel Philippines Inc. a system that provides financial records, calculations, and information of every employee. For a better understanding about the flow of our study conducted, we made a schematic diagram that comprises of three boxes. The first box is the input which shows the whole information of a certain employee including its financial records, allowances, and other deductions. The second box which shows the software applications, tools, and diagrams that necessary in developing the proposed system. The third box which is the output that result of input and process of the system study that we proposed which is the Pacific Nickel Philippines Inc. payroll system.

Chapter 2

Research Methodology In this chapter is all about hoe the proposed system study being planned and designed. This also tackles with the gathering procedures, analysis of the data, research design, instruments being used.

Research design The proponents gathered important data that will help developed the system process into a consistent and reliable flow of information. The data’s and information’s we gathered will certainly supports the system process of our proposed study. The proponents also undergo observations, descriptions of the behavior of the study we conducted for our system process. We also have graphical representations which show how the system process functions.

Employees Get Salary Details

Head Administrator

Payroll Personnel

Provide Employee details Employee and department

Calculate daily record of employee

Check again all the time records

Netpay= basic Card

Netpay= basic Card

Submit the DTR Card

Calculate Daily Record of the employee

Figure 4 Activity Diagram of Present System

Activity Diagram

Class diagram

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Person Lastname Firstname Address Contact # Age

-

Update Information Lastname Firstname Address Contact # Age

+ Cancel() + Delete() + Save() Employee - Employee ID #

Authorized Personnel

+ Enter employee detail() +Update Info.() 1

Head Administrator

1

Department - dept db() - empid

Payroll Personnel

Controller 1 +Retreive employeedetails() + Calc netpay()

1 Use Case diagram

PAYROLL SYSTEM

Maintain EmployeesDetails

Maintain Salary Details Information View Employee Details Information Update Salary Details Administrator

Employee Generates Reports DTR Report Search Information

View Salary Details

Maintain EmployeesDetails

Maintain Salary Details Information View Employee Details Information Update Salary Details

Generates Reports DTR Report Search Information

View Salary Details

Schematic diagram

Employees Information Records Including monthly wages, salaries, allowances and other deductions.

Microsof t Access Database Forms Financial reports Queries

Microsoft Excel Interface Design Data Analysis Diagrams Sequence diagram Class diagram Use case diagram

Pacific Nickel Philippines Inc. Payroll System