INTRODUC TION TO PAYROLL MA NAGEMEN T

Introduction to Payroll Management prepares professionals to manage a

payroll department by introducing them to the most applicable core management
skills. Based on market research, the course provides the management content
and tools required to be a successful manager, such as decision making and
project management. It builds on the foundation of a Payroll Compliance
Practitioners experience, knowledge and application of legislative monitoring
and effective communication of payroll programs and policies.

Upon completion of Introduction to Payroll Management, you should

be able to:
Define the role that strategic, operational, human resources and
financial management play in an organization.
Demonstrate the ability to monitor, analyze, communicate and
implement legislative changes.
Analyze situations and apply the appropriate decision making tool.
Participate in an organizations risk management process by developing
payroll continuity plans.
Identify and apply the principles of project management.
Define change management in terms of the forces that lead to
organizational change.
Demonstrate a professional payroll profile by applying privacy
principles to the management of payroll information.
Analyze ethical situations that may emerge related to compliance and/or
human resources situations.

PAYROLL SYSTEM FEATURES AND OBJECTIVES

The primary objective of the Payroll System from Legler Systems is to process
payroll information in an online environment, so specific online procedures can be
performed in seconds rather than the hours required by traditional batch methods of
computer processing. This PR system performs the basic payroll objectives by
providing a complete and accurate record of all payroll transactions affecting each
hourly and salaried employee.
Specific employee Payroll features and objectives of this business software are
highlighted below:
1.

Maintain a Labor Detail Record on the number of hours worked and the types
of work done by hourly employees during a payroll period, as well as the associated
general ledger account distribution information for labor expense.

2.

Calculate gross pay for hourly employees based on the hours worked including
overtime, if any. The gross pay for salaried employees is predefined for each payroll
period in their Employee Master Record.

3.

Automatically calculate required federal and state payroll taxes, such as income
tax withholding, Medicare, FICA and unemployment tax, for both employee and
employer. The results are stored in a Payroll Period Record for each pay period.

4.

Print payroll checks with stubs on preprinted forms showing current period and
year-to-date (YTD) dollar earnings and deductions. These same multi-purpose check
forms can be used by the Accounts Payable System. Pay checks can be printed for a
single employee or for a specified group of employees.

5.

Print payroll reports, such as Labor Edit Report, Hours Distribution Report and
Payroll Register, to provide an audit trail of payroll data entered into the system, so
adequate audit control is maintained.

6.

Print generalized payroll reports with the capability to extract specific payroll
information from the online database, such as "List the total FICA withheld this
quarter for each employee".

7.

Print the Payroll Posting Report summarizing general ledger posting

information by GL account code for either manual or automatic posting to the GL
System (PR09). Either the accrual or cash accounting method is supported.

8.

Print annual IRS W-2 forms and W-3 transmittal totals for each employee paid
during the year.

9.

Enable the user to change the federal and state tax rates used in calculating
payroll withholding and deductions by storing payroll tax rates in separate Payroll
Rates Records (PR14) by calendar year.

10.

Provide reporting capability by location (or department) and job code (order
number). Location and job codes used by this PR System should be consistent with
the location codes used by other accounting modules within the company.

11.

Provide online inquiry capability to (1) display all data elements on a single
employee, and (2) display all hours and dollar amounts associated with payroll
earnings and deductions for an employee.

12.

Define an Active-Flag to prohibit the current online entry of labor transactions

for an inactive employee, yet keep that old code for historical reporting purposes.

13.

Maintain vacation balance (hours available) per employee and automatically

calculate vacation hours earned per payroll period based on hours worked (SystemOption-28).

14.

Automatic voucher number assignment to new labor transactions added to

the PR System for positive control and audit trail. This payroll feature can be
overridden by the setting of System-Option-16 (DB03).

15.

Automatically assign GL expense account codes to a labor detail entry based on

standard expense codes setup for that employee to reduce clerical coding errors. This
payroll system objective minimizes the clerical data entry workload.

16.

Maintain an Employee Master Record for each employee that receives a

computer-printed payroll check. Information in the Employee Master Record includes
name, address, marital status, hourly salary, voluntary deductions, labor distribution
account codes and other information affecting payroll.

17.

Provide source document control over input labor transactions to the computer
by establishing batch numbers.

18.

Provide the capability to create custom PR reports where the user defines the
data fields to be selected, sorted and printed (DB12).

19.

Automatically display a detail record (Employee Master Record or Labor

Detail Record) when function key F7 is pressed from data entry procedure PR01 and
from inquiry procedure PR10. This payroll objective enables the operator to quickly
drill down to more information.

20.

Handle any fiscal year for accounting purposes, even one different from the
calendar year, through the use of a separate accounting period number (YRMO) field.

21.

Each labor transaction is associated with a specific payroll period (YRNO) for
control purposes, which is different than the financial accounting period.

22.

Verify state code and ZIP code (first 3 digits) associated with an employee
address. The Canadian province code is validated when the ZIP code is not numeric.

23.

Automatic employee number assignment whenever the employee name initials

are entered as the employee number for faster employee number lookup. Employee
name initials are manually or automatically set in the Employee Master Record by
procedure PR11.

24.

Print quarterly and annual employer reports, including IRS 940 and IRS 941.
The California DE-3 form can be printed.

25.

Provide system options in the Company Control Record to handle 6-digit dates
or 8-digit dates for user preference.

26.

In addition to online processing, batch job processing is supported where PR

report requests are entered online for later batch processing.
After all detail payroll information (e.g. labor hours worked) has been
entered for a payroll period (YRNO), the Labor Edit Report (PR02) is printed to
verify the completeness and accuracy of the time card data. A separate Pay code is
used to indicate the type of labor voucher entered, such as regular payroll hours,
payroll adjustments and labor hours only. If only 36.00 hours were reported for an
employee who normally works 40.00 hours a week, an error message is printed in the
edit report.
A General Payroll Report (PR07) can be printed at any time covering
payroll data for the year-to-date, quarter-to-date or for any payroll period. This general
report writer allows the user to define the report columns by specifying specific dollar
codes or hour codes. This report provides a flexible method of organizing payroll data
by time period and by type of payroll activity. It can be used for management purposes
and to prepare documents for federal and state agencies.

PROPOSED SYSTEM OF PAYROLL MANAGEMENT SYSTEM

With the shortcomings in the existing system at every area of work a new
system has to be worked upon which may overcome all the inefficiencies that the
present system has.
In todays high-tech world all the above mentioned characteristics of the
system is outdated and a need for a new, powerful, stable and result oriented software
is required which is why a new system based on Visual Basic & Oracle is formulated.
Visual Basic is used to provide front-end application for user-friendly ambience and
Oracle is used to maintain & update database for fast and reliable retrieval of data and
processing of queries.
Advantages of the proposed system:

User friendly and simple in nature

Compatible on all windows based systems

Upgradeable with slight modification in coding

Easy application maintenance due to its robustness

 Menu driven navigation to facilitate simple and quick access to required

functionality.

A central database for all the data related to ensure data consistency

Easier and faster data entry with menu support

Can quickly produce required reports related to Daily, Weakly, monthly, early
etc

EXECUTIVE SUMMARY
This is the common misconception about payroll. The typical view among
managers and small business owners is that payroll is a single event the issuing of
checks each paydate. If you have a bit more in depth understanding of the complexity
of payroll, you may think that it also involves the management of taxes associated
with each payroll. This still does not even begin to cover the scope and depth of
payroll administration and while this is the prevailing thought. The consequences of
this misunderstanding can be extremely costly.
For most businesses in the US labor is the biggest expense they face. These
costs can average up to 70 percent of expenses and 30 percent of total revenues. If
business owners and HR managers do not proactively manage their payroll costs, they
leave little room for profit and growth.
Paying overtime, keeping employees who dont produce scheduling mistakes
and so much more can lead to thousands of dollars in revenues turning into an
expense. These critical errors dont have to continue. There are tools and service
available that help you effectively manage and track these potential profit killers so
your business can run smoothly and successfully.

Payroll is not just an event it is a cycle. It is a cycle that never stops moving.
Without the right system, this cycle can become fragmented, disjointed and often
mismanaged. Payroll is a living, breathing system composed of employees,
technology and rules. Knowing the full complexity and steps. And having a trusted
system to manage each moving part is the only way to keep it in line and under
control.
This white paper will cover some of the aspects of payroll that many managers
overlook. It will detail how a payroll services partner can provided solutions to
keeping costs in check through comprehensive managements and strategic planning
tools.

COMPANY PROFILE

XtraNet Technologies Pvt Ltd is amongst the best thriving IT services, BPO and
System Integration provider companies in Central India. In addition to the IT business,
XtraNet also has lead position in niche market segments of Digital Signatures and
Consulting. XtraNet Technologies Pvt. Ltd. is a Company incorporated under the
Companies Act, 1956 with the Registrar of Companies, Madhya Pradesh &
Chhattisgarh in the month of January 2002. XtraNet is ISO 9001:2008 Certified IT
Company, originated and managed by a consortium of vibrant IT Professionals to
provide Integrated IT Solutions to Government, PSUs and Corporate clients.
We believe that Information Technology & Business are becoming inextricably
interwoven; anyone alone is meaningless without other. XtraNet is going to be a
decade old organization in which it has written Epic majestically. With turnover

soaring @ unprecedented heights, the Organization has been exploring new

dimensions consistently during the last nine years and achieving unparalleled feats.
Company has expertise in various areas including Consulting & Outsourcing, IT
Infrastructure, Software development and BPO services. Our aim is to provide
Complete Solution, Customer Satisfaction and Quality of Service.
The Company takes pride in the accomplishment of its member and we believe
in constant value addition and conduct many training and skill enhancement programs
for our team members.

Software development methodology is the sole reason behind the success or failure of
any project. It is a framework that is used to structure, plan, and control the process of
developing an information system. The main idea of the Software Development Life
Cycle has been "to pursue the development of information systems in a very deliberate,
structured and methodical way, requiring each stage of the life cycle from inception of
the idea to delivery of the final system, to be carried out rigidly and sequentially"
within the context of the framework being applied.

Requirements: In the requirements phase, the client defines some problem that they
want to solve. XtraNet has got fabulous pool of Business analyst to fathom the
requirement and proposing the solution with brilliance. XtraNet has proven its
hegemony in this realm of the market over the years.
Specification: The specification phase comes after the requirements phase. Here our
professionals tell to the client what we're going to do for them to solve their problem,
as defined in the requirements phase.
Design: With the approval of a specification document, Software designing phase can

be started. Our designers map out the flow of the program, mock up an interface (or
rapid prototype), design the database with prodigy.
Implementation: After you have the design all set, coding part comes into the
picture. We have gathered some maven minds that are able to deliver the solution with
perfection . The implementation makes the design work and should be in the command
of brilliant minds.
Quality assurance: In this phase, we test the application from start to finish, looking
for problems with the code or logic. XtraNet has been an ace in this realm for last 9
years. With experienced professionals in the armory XtraNet has been piping out best
of the breed products.
Maintenance: Over time, businesses change - and so do requirements. The
application will need to change to meet those changing business requirements. XtraNet
is committed with its manpower to maintain the quality of deliverd products .

At XtraNet, Professionals are working in well defined a hierarchy that allows multi
level Check points for issue/ideas. Well defined innovative/standard strategies are the
basis of the development program that forces the quality of deliverables.
Our Software passes through iterative quality check by dynamic quality professionals
until it reaches industry defined quality standards. Data/ Information security is a
major focused area of our software. Unauthorized access, database security, data
encryption/decryption, user rights are some key areas where our software proved
successfully.
We expertise in Project Management, Consulting, Architecture, Application
Development, RDBMS Solutions & Reporting etc.

REQUIREMENT DETERMINATION TECHNIQUE

Requirements determination is the beginning sub phase of analysis. In this sub
phase, analysts should gather information on what the system should do from as many
sources as possible. There are some traditional methods to help collecting system
requirements, such as interviewing, survey, directly observing users, etc. Nowadays,
some modern requirements colleting methods, such as JAD and prototyping, emerged.
Requirements structuring is the process to use some kind of systematical and
standard, well-structured methods to model the real world. Traditionally, we use data
flow diagram for process modeling, decision table or decision tree for logic modeling,
and Entity-relationship diagram for data modeling. These modeling tools usually
separately model only one face of the real world. So, when we try to show the integral
picture of a system, we usually choose more than one of the above requirements
structuring methods.
Rapid Application Development (RAD) is an approach that promises better and
cheaper systems and more rapid deployment by having system developers and end

users work tighter jointly in real-time to develop systems. Usually, RAD allows usable
systems to be built in as little as 60-90 days. [14] RAD is not a single methodology but
is more a general strategy of developing information systems. It brings several system
development components together. Nowadays, a lot of RAD tools are available, such
as VB for windows application, MBBuilder for MapInfo MapBasic. [16,17]
Object-oriented analysis and development is a brand new methodology. Although
OOP has become popular in computer world, whether OOA is superior to traditional
methods is still a question mark. However, from the view of OO world, OOA seems
having an important role to play in the future.
The objectives of this article are to introduce some widely adopted basic
requirements determination and requirements structuring methods, compare and
contrast those methods and try to find a best way for system requirements analysis.

REQUIREMENTS DETERMINATION
Collection of information is at the core of systems analysis. Information
requirement determination (IRD) is frequently and convincingly presented as the most
critical phase of information system (IS) development, and many IS failures have been
attributed to incomplete and inaccurate information requirements. [13] System analysts
must collect the information about the current system and how users would like to
improve their performance with new information system. Accurately understanding
the users requirements will help the system developing team deliver a proper system
to the end users in limited time and limited budget. If user just wants an ant,
definitely, an elephant is improper. There are many methods to collect information.
This article will discuss some basic and widely adopted ones of them.
Interviewing is one of the primary ways to gather information about an
information system. A good system analyst must be good at interviewing and no
project can be conduct without interviewing. There are many ways to arrange an
effectively interview and no one is superior to others. However, experience analysts
commonly accept some following best practices for an effective interview:

Prepare the interview carefully, including appointment, priming question,

checklist, agenda, and questions.

Listen carefully and take note during the interview (tape record if possible)

Review notes within 48 hours after interview

Questionnaires have the advantage of gathering information from many

people in a relatively short time and of being less biased in the interpretation of their
results. Choosing right questionnaires respondents and designing effective
questionnaires are the critical issues in this information collection method. People
usually are only use a part of functions of a system, so they are always just familiar
with a part of the system functions or processes. In most situations, one copy of
questionnaires obviously cannot fit to all the users. To conduct an effective survey, the
analyst should group the users properly and design different questionnaires for
different group. Moreover, the ability to build good questionnaires is a skill that
improves with practice and experience.
When designing questionnaires, the analyst should concern the following issues at
least:
The third one is directly observing users. People are not always very reliable
informants, even when they try to be reliable and tell what they think is the truth.
People often do not have a completely accurate appreciation of what they do or how
they do it. This I especially true concerning infrequent events, issues from the past, or
issues for which people have considerable passion. Since people can not always be
trusted to reliably interpret and report their own actions, analyst can supplement and
corroborate what people say by watching what they do or by obtaining relatively
objective measures of how people behave in work situation. However, observation can
cause people to change their normal operation behavior. It will make the gathered
information biased. [21]
The fourth one is analyzing procedures and other documents. By examining
existing system and organizational documentation, system analyst can find out details
about current system and the organization these systems support. In documents analyst
can find information, such as problem with existing systems, opportunities to meet

new needs if only certain information or information processing were available,

organizational direction that can influence information system requirements, and the
reason why current systems are designed as they are, etc. [21]
However, when analyzing those official documentations, analysts should pay attention
to the difference between the systems described on the official documentations and the
practical systems in real world. For the reason of inadequacies of formal procedures,
individual work habits and preferences, resistance to control, and other factors, the
difference between so called formal system and informal system universally exists.
The fifth one is Joint Application Design (JAD). JAD is a facilitated, teambased approach for defining the requirements for new or modified information
systems. JAD is started at IBM in the late 1970s. The main idea behind JAD is to
bring together the key users, managers, and system analysts involved in the analysis of
a current system. The primary purpose of using JAD in the analysis phase is to collect
systems requirements simultaneously from the key people involved with the system.
The result is an intense and structured, but highly effective, process. Having all
the key people together in one place at one time allows analysts to see where there are
areas of agreement and where there are conflicts.
The typical participants in a JAD are: JAD session leader, end users, business
managers, sponsor, system analysts, IS staff, scribe, etc. The JAD team is a group of
from six to sixteen individual who all have a stake in designing a high quality system.
Approximately two thirds of the group members are functional experts the other one
third are systems professionals. [2] JAD sessions are usually conducted in a location
other than the place where the people involved normally work, and are usually held in
special purpose rooms where participants sit around horseshoe-shaped tables.
Involving so many different kinds of people in one workshop makes how to
effectively and efficiently organize the JAD session a big challenge. [4,5]
When a JAD is completed, the final result is a set of documents that detail the
workings of the current system related to study of a replacement system. These
requirements definition document generally includes business activity model and
definitions, data model and definition, data input and output requirements. It may also

include interface requirements, screen and report layouts, ad hoc query specifications,
menus, and security requirements. When used at a later point in the system
development life cycle, a JAD session can also be used to refine a system prototype,
develop new job profiles for system users, or develop an implementation plan. [2]
However, to exploit full potential of JAD, the groupware tools should be
applied in JAD workshop sessions. The use of groupware tools to support the joint
Application Development technique increases the value of this technique dramatically.
When groupware tools are used in an automated JAD workshop, they greatly facilitate
the generation, analysis, and documentation of information. This is particularly
valuable for JAD workshops conducted to define and build consensus on the
requirements for new systems. [3]
The Sixth one is Prototyping. Prototyping is a means of exploring ideas before
you invest in them. Most system developers believe that the benefits from early
usability data are at least ten times greater than those from late usability
data. [19,20] Prototyping allow system analysts quickly show users the basic requirement
into a working version of the desired information system. After viewing and testing
the prototype, the users usually adjust existing requirements to new ones. The goal
with using prototyping to support requirement determination is to develop concrete
specification for the ultimate system, not to build the ultimate system from
prototyping. Prototyping is most useful for requirements determination when user
requirements are not clear or well understood, one or a few users and other
stakeholders are involved with the system, possible designs are complex and require
concrete form to fully evaluate, communication problems have existed in the past
between users and analysts, and Tools and data are readily available to rapidly build
working systems, etc. [21]
When adopting prototyping, analysts should concern about the potential
problems about this requirements determination method, such as informal
documentation, ignored subtle but important requirements, etc.
When we choose requirements determination method for a specific project,
there seven characters of them we should consider. They are Information Richness,

Time Required, Expense, Chance for Follow-up and probing, Confidentiality,

Involvement of Subject, Potential Audience. Table 1 concludes these characters of
previously discussed six requirements determination methods.

CLIENT SERVER ARCHITECTURE

The client/server model is a computing model that acts as distributed
application which partitions tasks or workloads between the providers of a resource or
service, called servers, and service requesters, called clients.[1] Often clients and
servers communicate over a computer network on separate hardware, but both client
and server may reside in the same system. A server machine is a host that is running
one or more server programs which share their resources with clients. A client does
not share any of its resources, but requests a server's content or service function.
Clients therefore initiate communication sessions with servers which await incoming
requests.
The client/server characteristic describes the relationship of cooperating
programs in an application. The server component provides a function or service to
one or many clients, which initiate requests for such services.
Functions such as email exchange, web access and database access are built on
the client/server model. Users accessing banking services from their computer use a
web browser client to send a request to a web server at a bank. That program may in
turn forward the request to its own database client program, which sends a request to a
database server at another bank computer to retrieve the account information. The
balance is returned to the bank database client, which in turn serves it back to the web
browser client, displaying the results to the user. The clientserver model has become
one of the central ideas of network computing. Many business applications being
written today use the clientserver model, as do the Internet's main application
protocols, such as HTTP, SMTP, Telnet, and DNS.
The interaction between client and server is often described using sequence
diagrams. The Unified Modeling Language has support for sequence diagrams.

TWO TIER ARCHITECTUREThis section summarizes the development of two-tier client-server architecture,
and provides a simple example of this model. It also summarizes the main problems of
the two-tier model.
This sections discusses
Rational for the Two-Tier Model
A Simple Example
Problems with Two-Tier Architecture
Rational for the Two-Tier Model
The whole point of client-server architecture is to distribute components of an
application between a client and a server so that, for example, a database can reside on
a server machine (for example a UNIX box or mainframe), a user interface can reside
on a client machine (a desktop PC), and the business logic can reside in either or both
components.
The client-server architecture, outlined here, is known as two-tier client-server
architecture.
A Simple Example
The UNIX print spooler is an example of a two-tier client-server architecture.
The client (the UNIX lp command) reads a file to be printed and passes the file's
contents to the server. The server performs a service by printing the file. All the basic
characteristics of client-server computing are present in this example.

SYSTEM DEVELOPMENT LIFE CYCLE

SYSTEM ANALYSIS
System analysis is an activity that encompasses most of the task we have
collectively called computer system engineering. Confusion occurs because term is
often used in a context because that allowed only to the software requirement analysis.
System analysis is conduced with the following:OBJECTIVES IN MIND: a)
Evaluate the system concept for feasibility.
b)

Perform economic and technical analysis.

c)

Allocate function to hardware, software, people database and system elements.

d)

Establish cost and scheduled constrains.

e)

Create a system definition that from the foundation for all subsequent
engineering works.

f)

Identify the customer needs.

Both Hardware and Software are required to successfully attain the objectives

listed above. In most data processing environment existing today, the term system
development, system definition, system analysis and engineering are used somewhat
interchangeably and refer basically to the same primary function; the process or steps
within a process that specifies that specifies the method of implementing a system in
the business compiler environment or, in more simple term. How to put a job on
computer.
THE SYSTEM DEVELOPMENT PROCESS:1)
2)
3)
4)

The development of system takes place its the following stages:The system planing stage.
The system feasibility stage.
The system analysis stage.
The system design stage.

SYSTEM ANALYSIS FUNCTION

As we indicated earlier, the system development process has stages. The
system is initially planned, the feasibility of such system is determined. The
requirements are analyses and the system is designed, programmed and finally
implemented in a production environment. In the first two stages: the system planning,
feasibility study, the primary responsibility belongs to management. Management
must determine that there is a need and it is feasible, both time wise and coastwise and
should meet the need of using the computer system.
In the last two stages, the programming and implement phase, the system
analyst role is that of guidance that the result fulfils the basic requirement of the
system.
The system analysts function today is considered one of the most important
part of business environment. It primary objectives are the design of system: however
the task may vary. The analyst may be asked to do any of the following:

The initial systems design to converts a manual operation to a business.

The design of new system adds to an existing business computer.
The redesign of current system to take advantages of new and improved.
The redesign of current system to implement management changes of polish
procedure of control.

SYSTEM DESIGN:(1)

HIGHLIGHT IF GIVEN SYSTEM.

(2)

IMPLMENTATION STEGE.

(3)

OPERTION OF THE SYSTEM.

(1)

HIGHLIGHT IF GIVEN SYSTEM:-

a)

Menu driven user friendly operation.

b)

Information screen display

c)

Comprehensive information is provided in response to organization quarry.

d)

Quick report facilities.

(2)

IMPLMENTATION STEGE.
Since the modularization of the Software part permits suitable testing
and validation, the program has been developed module.

(3)

OPERATION DETAILS OF THE SYSTEM :There is no need for the user to have the prior knowledge of the
Software, it is totally menu driven. After logging into the system, the user will
go directly to the menu containing the options

FEASIBILITY STUDY
On the basis of result of the initial study, feasibility study takes place. The
feasibility study is basically the test of the proposed system in the light of its
workability, Meeting users requirements, effective use of resources and .of course,
the cost Effectiveness. The main goal of feasibility study is not to solve the problem
but to achieve The scope. In the process of feasibility study, the cost and benefits are
estimated with Greater accuracy.
Building software takes more than just simple coding job nowadays. There are
so many stages that the developer has to go through, just to make sure a software is
built according to the need of the public or to the intended end-users. Software is now
more than just simple encoding and updating of information, it is a complex process
without which business may crumble.
SDLC carefully lays out the necessary stages in order to create perfect
software. Developers realized that building software is not all about answering the
need but exceeding them. SDLC is now observed by different software engineers each
of them following a specific model that works well with their talent and available
resources. Each model suggests different stages in software development. The model
suggests different approach in building software. Each model will suggest different
sources and tools to build a program.
Every model or any software created that was built using an SDLC model has
to plan before anything else. Project planning, feasibility study is very important
aspect of building a software. It will answer the question of why would a developer
build a software. Without planning, the software may not be able to perform or
function as planned and feasibility study makes sure the program created is needed
and will be appealing to the intended users.

Project planning and feasibility studies are a stage where developers, project
managers and research department will be working together. Developers will be the
group who will be creating the software, project managers are the ones who makes
sure the program will be done in time and the research department will show why an
idea of software will work.
Objectives
In project development and feasibility studies stage of the SDLC, software
engineers and developers should be able to:
Identify the Business Value
Developing software is not just creating a good software and presenting them
to the market with hopes that someone will actually use or buy it. Before the software
is even created, the idea will be evaluated again and again. This objective has to be
fulfilled by the companys researchers. They will be presenting the current market
situation, current users need or World Wide Web that software engineers can fill.
Estimate Investment and Reward on the Project
In project planning, the investment on a certain project has to be revealed. This
will be the backbone of every project. For one, investment will dictate how much the
company will spend to create certain software. This is even truer for companies that
usually hire project based developers. Investment will dictate how many people will
be working for the project. Aside from investment, project planning and feasibility
studies should show how much the company will earn once the project is created. If
its just a tool for businesses, it should show how it can increase the productivity of
the employees and its actual impact in financial sense.

Analyze Feasibility
Researchers or proponents of the software will actually show why the software
is needed in the actual business sense. Statistical data will always play a crucial role in
proving why the particular software is good for public use. Most of the time,
researchers will be interviewing individuals in order to get their opinion if they will
use if that software is available in the market. It will also take a look at the possible
competition and how will the software be different compared to other companies.
Outline Technical Needs
In project planning, developers should be able to come up with the possible
technical needs of the software. These are very important since without them, software
development is nearly impossible. Within the realms of the budget, developers should
get the best devices to help them in project development.

PROJECT PLANNING AND COST ANALYSIS

PERT chart
A PERT chart is a graphic representation of a projects schedule, showing the
sequence of tasks, which tasks can be performed Simultaneously, and the critical path
of tasks that must be completed on time in order for the project to meet its completion
deadline. The Chart can be constructed with a variety of attributes, such as earliest and
latest start dates for each task, earliest and latest finish dates for Each task and slack
time between tasks. A PERT chart can document an entire project or a key phase of a
project. The chart allows a team to avoid unrealistic timetables and schedule
expectations, to help identify and shorten tasks that are bottlenecks, and to focus
Attention on most critical tasks.

FUNCTIONAL REQUIREMENT ANALYSIS

After analyzing the requirements of the task to be performed, the next step is to
analyze the problem and understand its context. The first activity in the phase is
studying the existing system and other is to understand the requirements and domain
of the new system. Both the activities are equally important, but the first activity
serves as a basis of giving the functional specifications and then successful design of
the proposed system. Understanding the properties and requirements of a new system
is more difficult and requires creative thinking and understanding of existing running
system is also difficult, improper understanding of present system can lead diversion
from solution.
ANALYSIS MODEL
SDLC METHDOLOGIES
This document play a vital role in the development of life cycle (SDLC) as it
describes the complete requirement of the system. It means for use by developers and
will be the basic during testing phase. Any changes made to the requirements in the
future will have to go through formal change approval process.
SPIRAL MODEL was defined by Barry Boehm in his 1988 article, A spiral
Model of Software Development and Enhancement. This model was not the first
model to discuss iterative development, but it was the first model to explain why the
iteration models.
As originally envisioned, the iterations were typically 6 months to 2 years long.
Each phase starts with a design goal and ends with a client reviewing the progress thus
far. Analysis and engineering efforts are applied at each phase of the project, with an
eye toward the end goal of the project.

The steps for Spiral Model can be generalized as follows:

The new system requirements are defined in as much details as possible. This usually
involves interviewing a number of users representing all the external or internal users
and other aspects of the existing system.

A preliminary design is created for the new system.

A first prototype of the new system is constructed from the preliminary design. This
is usually a scaled-down system, and represents an approximation of the
characteristics of the final product.

A second prototype is evolved by a fourfold procedure:

1.

Evaluating the first prototype in terms of its strengths, weakness, and risks.

2.

Defining the requirements of the second prototype.

3.

Planning an designing the second prototype.

4.

Constructing and testing the second prototype.

At the customer option, the entire project can be aborted if the risk is deemed too
great.

Risk factors might involved development cost overruns, operating-cost

miscalculation, or any other factor that could, in the customers judgment, result in a
less-than-satisfactory final product.

The existing prototype is evaluated in the same manner as was the previous prototype,
and if necessary, another prototype is developed from it according to the fourfold
procedure outlined above.

The preceding steps are iterated until the customer is satisfied that the refined
prototype represents the final product desired.

The final system is constructed, based on the refined prototype.

ABOUT PROJECT
This project is made on the topic Payroll Management.This is standerd
Payroll Management System which is used in any company.
The Payroll Management includes all details of employee like employee
personal details, salary Details, Income Tax Calculation, professional Tax Calculation,
provident Fund and Arrears, Increment etc. The Payroll management consultant
includes many kinds of master and transactions details of employee. The Payroll
Management is also making the use of the computer for reducing its work
complexities.
The Payroll Management report work includes many works such as maintain
the record of Employee, employee monthly attendance, Calculation of salary
according to attendance and also with respect of earnings and deduction. This software
is being generated many type of report salary list, bank salary report, income tax form,
provident fund Form 3A, provident fund form 6A,monthly provident fund chalan,TDS
deposit from etc.
The development of Payroll Management computerized system will achieve the
organizational objectives with the following contents;

History of Employees from the date of joining.

Master Employees.
Salary details (customize)
Allowance Details (customize)
Calculation of Leave encashment (customize)
Salary Sheet (customize)
Salary Slip (customize)
PF Deduction-Employees wise and month wise
PF Challan
Form 12A-Monthly Return
Form 3A
Form 6A
EDLI report
Bonus/ Arrear / Advance

Employees with their designation and location

List of Employees
Loan (customize)
Monthly Attendance
Declaration of investment to be taken from employees.
Calculation sheet of tax liability of each employees
Month wise details of salary and other allowances with Tax liability and
investments
TDS deposit challan
TDS deduction employees wise and month wise
Form 16 & 16AA
Declaration of any other income to be disclosed by employees other than
salary.
List of PAN numbers with the employees name
Calculation of Professional Tax (customize)

WORKING OF PAYROLL MANAGEMENT

Human Resource Is The Most Vital Resource For Any Organization. It Is
Responsible For Each And Every Decision Taken, Each And Every Work Done And
Each And Every Result. Employees Should Be Managed Properly And Motivated By
Providing Best Remuneration And Compensation As Per The Industry Standards. The
Lucrative Compensation Will Also Serve The Need For Attracting And Retaining The
Best Employees.
Compensation Is The Remuneration Received By An Employee In Return For
His/Her Contribution To The Organization. It Is An Organized Practice That Involves
Balancing The Work-Employee Relation By Providing Monetary And Non-Monetary
Benefits To Employees. Compensation Is An Integral Part Of Human Resource
Management Which Helps In Motivating The Employees And Improving
Organizational Effectiveness.
COMPONENTS OF COMPENSATION SYSTEM
Compensation Systems Are Designed Keeping In Minds The Strategic Goals
And Business Objectives. Compensation System Is Designed On The Basis Of Certain
Factors After Analyzing The Job Work And Responsibilities. Components Of A
Compensation System Are As Follows:

TYPES OF COMPENSATION
Compensation Provided To Employees Can Direct In The Form Of Monetary
Benefits And/Or Indirect In The Form Of Non-Monetary Benefits Known As Perks,
Time Off, Etc. Compensation Does Not Include Only Salary But It Is The Sum Total
Of All Rewards And Allowances Provided To The Employees In Return For Their
Services. If The Compensation Offered Is Effectively Managed, It Contributes To
High Organizational Productivity.
DIRECT COMPENSATION
Direct Compensation Refers To Monetary Benefits Offered And Provided To
Employees In Return Of The Services They Provide To The Organization. The
Monetary Benefits Include Basic Salary, House Rent Allowance, Conveyance, Leave
Travel Allowance, Medical Reimbursements, Special Allowances, Bonus, Pf/Gratuity,
Etc. They Are Given At A Regular Interval At A Definite Time.

INDIRECT COMPENSATION
Indirect Compensation Refers To Non-Monetary Benefits Offered And
Provided To Employees In Lieu Of The Services Provided By Them To The
Organization.

They

Include

Leave

Policy,

Overtime

Policy,

Car

Policy,

Hospitalization, Insurance, Leave Travel Assistance Limits, Retirement Benefits,

Holiday Homes.

NEED OF COMPENSATION MANAGEMENT

A Good Compensation Package Is Important To Motivate The Employees To
Increase The Organizational Productivity.
Unless Compensation Is Provided No One Will Come And Work For The
Organization. Thus, Compensation Helps In Running An Organization Effectively
And Accomplishing Its Goals.
Salary Is Just A Part Of The Compensation System, The Employees Have
Other Psychological And Self-Actualization Needs To Fulfill. Thus, Compensation
Serves The Purpose.
The Most Competitive Compensation Will Help The Organization To Attract
And Sustain The Best Talent. The Compensation Package Should Be As Per Industry
Standards.
STRATEGIC COMPENSATION

Strategic Compensation Is Determining And Providing The Compensation

Packages To The Employees That Are Aligned With The Business Goals And
Objectives. In Todays Competitive Scenario Organizations Have To Take Special
Measures Regarding Compensation Of The Employees So That The Organizations
Retain The Valuable Employees. The Compensation Systems Have Changed From
Traditional Ones To Strategic Compensation Systems.
Todays Compensation Systems Have Come From A Long Way. With The
Changing Organizational Structures Workers Need And Compensation Systems Have
Also Been Changing. From The Bureaucratic Organizations To The Participative
Organizations, Employees Have Started Asking For Their Rights And Appropriate
Compensations. The Higher Education Standards And Higher Skills Required For The
Jobs Have Made The Organizations Provide Competitive Compensations To Their
Employees.
Compensation Strategy Is Derived From The Business Strategy. The Business
Goals And Objectives Are Aligned With The HR Strategies. Then The Compensation
Committee Or The Concerned Authority Formulates The Compensation Strategy. It
Depends On Both Internal And External Factors As Well As The Life Cycle Of An
Organization.

Evolution Of Strategic Compensation

TRADITIONAL COMPENSATION SYSTEMS

In The Traditional Organizational Structures, Employees Were Expected To

Work Hard And Obey The Bosses Orders. In Return They Were Provided With Job
Security, Salary Increments And Promotions Annually. The Salary Was Determined
On The Basis Of The Job Work And The Years Of Experience The Employee Is
Holding. Some Of The Organizations Provided For Retirement Benefits Such As,
Pension Plans, For The Employees. It Was Assumed That Humans Work For Money,
There Was No Space For Other Psychological And Social Needs Of Workers.
CHANGE IN COMPENSATION SYSTEMS
With The Behavioral Science Theories And Evolution Of Labour And Trade
Unions, Employees Started Asking For Their Rights. Maslow Brought In The Need
Hierarchy For The Rights Of The Employees. He Stated That Employees Do Not
Work Only For Money But There Are Other Needs Too Which They Want To Satisfy
From There Job, I.E. Social Needs, Psychological Needs, Safety Needs, SelfActualization, Etc. Now The Employees Were Being Treated As Human Resource.
Their Performance Was Being Measured And Appraised Based On The
Organizational And Individual Performance. Competition Among Employees Existed.
Employees Were Expected To Work Hard To Have The Job Security. The
Compensation System Was Designed On The Basis Of Job Work And Related
Proficiency Of The Employee.
TODAYS MODERN COMPENSATION SYSTEMS
Today The Compensation Systems Are Designed Aligned To The Business
Goals And Strategies. The Employees Are Expected To Work And Take Their Own
Decisions. Authority Is Being Delegated. Employees Feel Secured And Valued In The
Organization. Organizations Offer Monetary And Non-Monetary Benefits To Attract
And Retain The Best Talents In The Competitive Environment. Some Of The Benefits
Are Special Allowances Like Mobile, Companys Vehicle; House Rent Allowances;
Statutory Leaves, Etc.
PAYROLL MANAGEMENT PROCESS

Calculation Of Gross Salaries And Deductible Amounts Is A Tedious Task

Which Involves Risk. Some Of The Organizations Use The Traditional Manual
Method Of Payroll Processing And Some Go For The Advanced Payroll Processing
Software. An Organization Opts For Any Of The Following Payroll Processing
Methods Available

MANUAL SYSTEM
Manual Payroll System Is The Traditional Payroll System Which Involves Pen
And Ink, Adding Machine, Spreadsheet, Etc Instead Of Computers, Software And
Other Computerized Aids. The Process Was Very Popular When There Were No
Computerized Means For Payroll Processing.

Now-A-Days It Is Only Few Small

Scale Organizations In The Remote Areas That Use The Manual Payroll. Sometimes
The Construction Industry And Manufacturing Industry Also Use The Manual Payroll
Systems For The Contractual Labour, As Theses Contracts Are On Daily/Weekly
Basis. There Is Full Control In The Hands Of Owner. But The Process Is Tedious,
Time Consuming And Risky As It Is More Prone To Errors.

ACCOUNTANT
Accountant Is A Professional Having A Degree/Diploma Course in
Finance/Accountancy. He/She Is Responsible For All The Activities Related To
Payroll Accounting. He/She Has The Sound Knowledge Of Accounting Principles
And Globally Accepted Standards.
The Process Adds Costs To The Organization. It Involves Paying Someone
Who Is Responsible For Calculating The Salaries Of Others. The Financial Control
Regarding Salary Goes In The Hand Of Accountant.
PAYROLL SOFTWARE
In Todays Computerized Environment, Payroll System Has Also Developed
Itself Into Automated Software That Performs Every Action Needed By The Payroll
Process. It Helps In Calculating The Payable Amounts And Deductions Very Easily. It
Also Helps In Generating The Pay Slips In Lesser Time. Automated Calculations
Result In No Errors. Data Is Validated Automatically By The Software. It Needs
Professionals To Make Use Of The Software For Its Efficient Working.
PAYROLL OUTSOURCING
Payroll Outsourcing Involves A Third Party (An Outsourcing Company) In The
Calculations Of Salaries And Deductions. The Outsourcing Organization Is
Responsible For All The Activities Of The Payroll Accounting. It Saves Time And
Cost For The Organization. If There Is More Number Of Employees (Say More Than
900-1000) In The Organization, Payroll Outsourcing Would Be Very Much Beneficial.

KEY MODULE OF PAYROLL MANAGEMENT

HOW PAYROLL MANAGEMENT WORKS

SCOPE AND FUTURE APPLICATIONS

This project has many future applications like it can be used in any of the
Retail Outlet of Any Type companies.

This project was build keeping in mind all the requirements of these outlets and
they can be implemented in any such type of organization with very few
modification.
With modifications it can be possible for Employee Attendance to control all
retail outlets by connecting them through a network. Because of this software
all they need is a Server application and any type of connectivity to that server.

REVIEW OF LITERATURE
Ensures timely and accurate preparation of all Institution payroll operations and
works closely with the Human Resources Office to ensure that payroll actions are in
conformance with employment and benefits practices and accounting procedures.
Oversees preparation of all federal and state payroll tax reports,
including quarterly and year-end returns; determines taxability of non-wage payments
and serves as in-house contact for technical tax compliance issues, including tax
liabilities of foreign nationals.
Interprets Institution employment policies and government regulations
in connection with payroll activities and makes recommendations on modifications to
senior management as appropriate.
Handles federal and state agency audits and maintains close contact with
ITI

and other regulatory agencies to ensure that the Institution has accurate

information and is in compliance.

Maintains all payroll records, reports, computations and audits,
including periodic internal audit tests of labor utilization; works closely with internal
and external auditors to ensure compliance with relevant tax laws and government
regulations.
Interfaces routinely with Human Resources on employee benefits issues
(deductions, retirement payments, etc.) to ensure timely and accurate processing.
Works closely with Management Information Systems on developing
payroll applications that ensure internal controls and facilitate the implementation and
maintenance of payroll and HR master files.
Provides periodic analysis of payroll and disbursement records to ensure
that adjustments are in accord with management's criteria.

MAJOR DUTIES OF HR:

Payroll Methodology
SAP-source is a software-Talent payroll service provider which can take best of the
available software to suite client need.
We can use any payroll software with strong methodical service orientation.
To believe sensitive activity like payroll service is more important than the tool used.
EXECUTION OBJECTIVE

To build methodical & service oriented approach in execution of Payroll as it is a

sensitive activity and needs to be executed,

Timely & consistently

Correctly to the last detail
To Fulfill statutory obligations/compliances
To give complete picture every month to management and employee
Supportively & predictably
Methodical structured approach to payroll outsourcing
To help us Assess, Analyze and to Build solid execution
Four Stages

Analysis stage documenting the details gathered.

Transition stage - preparation
Pilot stage verification
Production stage

STAGE-I: ANALYSIS

`Understand client business

Alignment of outsourcing strategy with the corporate strategy
Assess requirement
Review environment

Confirm viability
Identification of an outsourcing champion
Establishment of clear timelines around the
outsourcing initiative
STAGE-II : TRANSITION

Team mobilization (technology & domain)

Training in tools and procedures if required
Hand-over of responsibility to our team
Establishing necessary set-up
STAGE III : PILOT

Data collection and entry in the D/B

One time data
Company & employee
Monthly data
Data in between the months
Data validation with the client
Verify per the checklist, if we have received the monthly data in complete
Enter the data in the salary processing software
Data entry validation
Verify if software has given considerations to all exceptions. If not do the
necessary changes manually.

STAGE IV : EXECUTION

Monthly: (pdf file over the email)

Salary slip to the employee with leave balance & to date fig.
Consolidated report to the management
Note to the Bank for disbursement of salary
Monthly tax deduction statement
Monthly PF/Society contributions
Projected Income tax working for the year Annually/Quarterly
MIS
Quarterly tax return documents to company and to employee
Salary certificate to the employee
Attending to the call of the employer/employee on specific issues

PAYROLL BACK OFFICE

SCOPE OF SERVICES

Maintenance and updating of employee information sheet / salary register

Calculation and preparation of monthly salary sheets.
Calculation and deduction of statutory deductions like Provident Fund,
Profession Tax, Income Tax etc as and when they are applicable.
Calculation of with holding tax, statutory and non statutory deductions
on salary.
Monthly pay-slips to employees
Quarterly IT report to employees
TDS CERTIFICATES
Issue Form 16 to all employees
TDS RETURNS, Filing of quarterly salary E-TDS returns

RESEARCH METHODOLOGY
Research in common parlance refers to a search for knowledge. Research is an
academic activity and as such the term should be used in technical sense. According to
Clifford Woody research comprises defining and redefining problem, formulating
hypothesis or suggested solution, collecting and at last carefully testing the
conclusions to determine whether they fit the formulating hypothesis.
Various uses of having a research design are as follows:
1. It provides answers to various question such as What is the object of research?
What data are needed and how will these is gathered?
What will be the time, place and sample of study?
How will the data be analyzed and interpreted?

2. It acts as a standard guidepost, which helps the research in measuring his\her

shortcomings and deviations in actual research later on.
3. It forestalls the possibility of a fruitless enquiry and acts as an insurance against
future failure.

LIMITATIONS OF THE PROJECT

Not supports web based operations

Multiprocessing not allowed.

Extensive help is not provided.

Not support in the OS lower than windows.

PAYROLL SOLUTIONS
HR activities like Payroll bring to mind, a stream of innumerable printouts, forms and
transactions. Although repetitive, these are critical functions within an organization. Payroll
services require constant evolution of best practices and focus on accuracy & discipline. This
is where we have made significant investments in India over the last five years. With our rich
experience in managing payroll for over 10 years globally we understand every aspect of
payroll management & have the ability to customize it to meet all our client requirements.
With more than 2500 clients globally and partnering with some of the largest Indian
and Multi national companies in India, our experience has resulted in a consistent growth
curve.
Talent Pro's complete payroll solutions comprises of

Time & Attendance Management

Compensation & Benefits Processing

Reimbursement Processing

Payroll Reports & MIS

Interface with legacy Systems

Web based Delivery

Statutory Compliance

Query Management

Retrials Management

PF Trust Management

RECRUITMENT & EXECUTIVE SEARCH

Successful business venture depend on quality manpower. Given the high potential in
Indian market and the advent of sun rise sectors, we now have an independent recruitment
and executive search division. Our expertise spans across business verticals supported by a
team of professionals. TalentProascertains the skill-set of the prospective candidates through
expert methodologies and selects the most ideally suited for the job. We not only provide
recruitment service in India but as a result of our association with Talent2, we are geared up
to manage IT, Non IT, Middle & senior management positions in select South East Asian, and
Middle East Markets
RECRUITMENT:
We have a Pan India team of recruiters supporting existing and new clients on
mandates across levels. We have a multi industry exposure to source and place candidates
through this division .There is a strong emphasis on turnaround time and quality candidates.
EXECUTIVE SEARCH:
We maintain a rich databank of Senior and middle level profiles from across industry
verticals. Confidentiality and candidate fitment are prime criteria this search division.

We have a team of very experienced and professional recruiting consultants managing the
client and candidate interface.

IT RECRUITMENT:
We now have a separate IT recruitment wing supporting the IT and ITES growth in
India and abroad and work with the some of the largest clients in this field. We have domain
expertise to provide a wide range of client requirements.

CONCLUSION
The study had confirmed that the company is having a good Software
System.
From this study, it is found that majority of the workers were satisfied
with Software used.

 To make the software system more efficient and excellent, the company
should give importance to the clients and create awareness among
employees and it shall consider some of the ways and means suggested
by the employees like addition of parameters such as short cut for
calculation PF,ESI,TAX,Etc,. Dependability and conducting regular
training program on the software usage.
I hope that the suggestion given in the report may be implemented in
future course for the benefit of the employees and the company.
The company should conduct the similar type of research at regular
interval to know the changing softwares and to know about the latest
technology like baan software etc..

BIBLIOGRAPHY

System analysis design : ELIASIM.AWAD

Management information system : WAMANS JAWADEKAR
Database management system : ALESIS LEON , MATHEWS LEON

WEBIOGRAPHY

Www.google.com

www.code project.com

start webdotnet.com

www.wikipedia.com