AUTOMATED PAYROLL SYSTEM

OF RENAISSANCE SCHOOL OF SCIENCE AND TECHNOLOGY

An Undergraduate Thesis Proposal Presented

to the Faculty of The College Department

Renaissance School of Science

and Technology

Morong, Rizal

In Partial Fulfilment of the Requirements for the

Degree of Bachelor of Science in

Computer Science

CEEJAY CARLO B. ALFONSO

MARLON H. DELA ROSA

JELINA M.PAZ

REVI JOHN S. MONILLA

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CHAPTER 1

THE PROBLEM AND ITS BACKGROUND

This chapter presents the introduction, background of the study,

conceptual framework, objectives of the problem, scope and limitation of the

study, and also the definition of terms used in the study.

Introduction

Since the beginning of time technology has helped us out as a human

race. From the invention of the wheel to the Internet, technology has been a

great factor on the way our civilization has grown. With more and more

technological advances just around the corner, our civilization will continue to

grow faster and faster than ever before.

Computers make life easier for people every day. They help us to do tasks

quicker and communicate with friends and family with the click on a button.

Computers play a significant role in the school system as well. They help

students to learn more efficiently and help them do their work. Computers offer

the Internet which helps students’ research information for projects they may

have. School computers also offer programs which can help anyone learn. An

example of this is the program All the Right Type. This program helps students

as well as teachers, to learn how to type faster and more efficiently. Also there

are other programs which younger students can go on to help them with

developing and reinforcing their math skills and reading skills. Programs like

Math Circus and matching the word with the picture. Programs like these make it
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easy to understand and use computers, yet it also makes learning fun.

Computers also make writing and doing homework easier to complete. 1

For companies, progress is saving in time and therefore in money.

Exchanges are faster especially with the internet. Sales and purchases are now

facilitated and possible worldwide. This allows businesses to buy raw materials

with discounts or at reduced prices. Similarly, global tourism has grown.

On the other hand, the evolution of modern technology has

disadvantages, for example, dependence on new technology. Man no longer

needs to think. Even if the calculator is a good invention, man no longer makes

mental calculation and no longer works his memory. The decline of human

capital implies an increase in unemployment. In some areas, devices can replace

the human mind.

The use of technology certainly needs rule and new laws. For example

internet use is an individual freedom. However, the invention of the atomic bomb

cannot be an individual freedom. In fact, regulations are difficult to implement

when these technologies are introduced – such as regulation surrounding the

impending arrival of autonomous vehicles.

Finally, as most technological discoveries aim to reduce human effort, it

would imply that more work is done by machines. This equates to less work for

people: the human is becoming ever so obsolete by the day, as processes

become automated and jobs are made redundant.2

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Background of the Study

In this new generation, the technology must be upgraded. When it comes

to the business world, they are also experiencing the rapid change of technology.

They are more competitive in a business; most of them are using high

technology. As part of the business or an institution, payroll is one of the

important bodies in a company or an organisation. A systematized payroll will

help manage the wage of the employee. It could lessen the time of the

accountant to compute the salary of each employee of the company or institution.

Having a computerized and automated payroll system will improve the process

and it can avoid some minor problems that the company encountered. This is to

provide an accurate computation of salary of employee and to ensure that

employee will receive the right amount. Payroll is essentially how employees are

paid. It’s the legal papers that are involved. There’s more to payroll than just

handing out cash and cheque. However, after gathering data on what the

employee as they compared it to their salaries, some simple pay day

mathematics were given to let the employee hand out the dough.

Related Literature and Studies

As studied by Kenan Kalagho writer of Business Weeks in Dar Es Salaam,

Tanzania the Payroll System saves Tanzania’s Government $927 Million. The

government is currently saving some $927 million (Tsh1.5 billion) after

introducing a new payroll system .Speaking in Dar es Salaam last week, the

Assistant Director in the President’s Office, Public Service Management Peter

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Mushi said: “We have been able to solve to a larger extent the issue of ghost

workers where the government was losing a lot of monies in salary,” Mushi said.

He said the new system allows managers to monitor any changes that have been

made on an individual’s information. Most countries in the region are battling with

the issue of ghost workers which has been costing governments dearly. 3

As stated by PriscusKiwango, the Director of Information Resource

Management in the Presidents’ Office, Public Service Management a number of

government offices at the districts level were already using the new payroll

system using the National Information Communication Technology Broadband

Backbone (NICTBB).He said there has been a lot of new development in most of

government offices including access to internet resulting from the mushrooming

of mobile operators in the country and thus lessening the time to enroll a new

employee with the government payroll which currently serves only 478,000 public

servants.4

As indicated by sunstar.com the City Accounting Department of Cagayan

De Oro City 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
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computerized payroll system, Rugay said the preparation, processing and

payment of payroll system to permanent employees would be hastened and fast-

tracked.5

As studied by Philstar.com (July 30, 2013 - 6:28pm) Manila, Philippines -

Government employees soon receive digitized versions of their payroll in a bid to

increase efficiency and transparency in government offices, Department of

Budget and Management (DBM) Under the new system, state agencies will

continue to have discretion over their respective human resource and personnel

requirements. This will be expressed in a Monthly Cash Plan relating to

Personnel Services that will be submitted to the Bureau of Treasury, which will

provide a payment file to the proper bank for the timely processing of employee

salaries, DBM said. The government agencies are tasked to create Automated

Teller Machine payroll accounts for their employees to allow for the electronic

distribution of monthly salaries.6

According to the researchers (Aguilera, Bronzas, and Marqueses) of

automated payroll system of Pamana Medical Center (2010), .A great payroll is

really one of the most important issues to pay attention in almost every company.

It is impossible to handle payroll responsibilities with a pen, ledger sheet and

calculator, but nowadays it is more convenient for most companies to use

computerized payroll software.7

The schools is also not exempted in using a payroll system namely

the study of payroll system for the teachers and staff of Liceo De Calamba (2010)

there searchers(Maligaya, Opeña, James Jordan) viewed that Liceo de Calamba

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aims to provide high quality of education for their students and to establish great

relationship with their employees by providing them with the right and appropriate

benefits they must enjoy as population of Liceo de Calambaincreases,its system

must perform competitively, Payroll system is needed in order to have an

accurate and error free in their payroll process and services.8

As stated by(Alvarez,,Aldrine, Gecolea) of Krizalen enterprises(2014) uses

a biometrics with online data analytics dashboard to give krizalen enterprises an

efficient payroll system that can automatically monitor the attendance and trip

tickets of the employees, drivers and helpers with the biometrics technology and

data analytics that would help them in the security and accuracy of the company

payroll and information. Summing up the past situation of payroll inside krizalen

enterprises, there was need for a system that could help them with employee

information management attendance, monitoring, payroll processes, and

assistance for the manager decision making. With this idea, the proponents

conducted a study for the development of software that can minimize data

redundancy, in consistency, and manipulation. Employees can view their current

pay and review their information from the database. And with updating of their

ports that can be viewed through the internet, the manager can view the recent

activities within the proposed system.9

According to the researcher of Nyanmaru Computerized Payroll System

(2013), Nowadays all establishments are becoming modernized, they use

modern technologies to make their transaction fast, easy, and accurate in order

to avoid waste of time and for the sake of safety and security. It also helps
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human to solve and understand complex problem and analysis such us the

computational need of humans. Especially to business establishment or

corporation processing enormous data and complex transaction. Payroll is an

example of a complex transaction because it is a critical business operation

dealing with numerous accounts and produce plenty and confidential files.

Payroll is encompasses every employee of a company who receives a regular

wages or other compensation due to each. Applying manual procedure on a

Payroll transaction involving the vast be at answer in that problem would be

computer because computers can simulate enormous data and can process

complex transaction in a fast and efficient way. It can generate numerous

accounts and data accurately. A Computerized Payroll System will not only

provide accurate calculation and fast process of Payroll transaction but it will

secure data through security.

Other studies that used a different programming language

like AishwaryaGuptain (2013) AMITY University UTTAR Pradesh that develop a

system entitled with employee payroll system According to the researcher

Employee Payroll system is an application that enables users to create and store

Employee Records. This application also provides a facility which enables an

administrator or an employee to generate a Pay slip. This application is helpful to

the organization as it maintains data of employees related to that organization.

Java is used to create this application as it is a platform independent language

and can be used on a standalone machine as well as on a distributed network.

Furthermore applications developed in java can be extended to Internet based

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applications. Thus java was chosen to do the front end task to design this

application. That insisted the benefits of the application Easy calculations

.Accuracy in payroll are necessary in every company. It requires efficiency to pay

employees the right amount of money they have earned, Reliable backup,

keeping large amounts of data for payroll can be challenging. This application

stores your data in the database of your system because you can’t store piles of

papers and data manually, it can be easily handled by the person who has basic

knowledge of computer because it provides a user friendly environment, its

hardware and software configuration is not very expensive.

Also related study of AmritKadam (Aug 13, 2014) are included to the study

entitled College Payroll System and Taxation, the purpose of this study is to aim

developing Employee Payroll Management is to provide an easy way not only to

automate all functionalities involved managing leaves and Payroll to the

employees of College, but also provide full functional report to the management

of college with the details about usage of leave facility and even deduction of

income tax and related taxes can be done by this system. Payroll System is the

heart of any Human Resource System of an organization. The solution has to

take care of the calculation of salary a per rules of college, income tax and

various deductions to be done from the salary including statutory deductions like

income tax and provident fund deductions. It has to generate pay-slip, cheque

summary and MIS reports. It is understood that we are tired of managing

thousands of odd papers, pay-slips, payroll reports, and salary detail and so on.

Imagine that we have a payroll processing system which will generate our pay-
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slips and payroll reports within seconds. We can help others automated your

payroll system by developing a customize payroll application that suits your

specific requirements.10

Theoretical Framework

The theoretical framework that will be used in the study is the Input

Process – Output Model. In the IPO model, a process is viewed as a series of

boxes (process elements) connected by inputs and outputs. Information or

material objects flow through as series of task or activities based on a set of rules

or description points. Flow charts and process diagrams are often used to

represents the process. What goes in is the input; what causes the change is the

process; what comes out is the output. The IPO model will provide the general

structure and guide for the direction of study. The Input- Process –Output Model

also known as the IPO+S Model is a functional model and conceptual schema of

a general system. An IPO chart identifies a program’s inputs, its outputs, and the

processing steps required to transform the inputs into the outputs. The IPO

model has many interdisciplinary applications, and is used to convey systems

fundamentals in IT overview education and as a brainstorming, preliminary

investigation tool in systems development process. It consists of at least three,

and sometimes four, distinct components. In contemporary Information Technology, it

is almost always discussed as a three component model in which the fourth is a named

optional.
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Conceptual Framework

The system initiated by IPO model was used as the basis for presenting

the conceptual model. It is composed of input, process and output.

The first frame refers to the data information, which the user will input. It

consists of, Employee name, Employee ID, position, salary per hour, overall

deductions and coverage days.

The second frame refers to the processes such as gathering data,

questionnaire checklist of the evaluation, system analysis and data information.

The third frame refers to the developed system.

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INPUT PROCESS OUTPUT

Data of:
 Gathering data
- Employee name
- Employee ID
- Position
- Salary per hour  Development of the Automated Payroll
- Overall deductions algorithm, system System of
- Coverage days
design and database Renaissance School of
Procedures and guidelines of structure using Visual Science and Technology
Automated Payroll System,
basic. Net will be developed and
Perception of the respondents assessed.
on the level of acceptability of
the developed system in  Modification and
terms of: Validation of adapted

- Accuracy Questionnaire
- Applicability Checklist.
- Clarity
- Completeness
- Modifiability  System Analysis and
- Portability
- User-friendliness Data Interpretation
- Workability

Feedback

FIGURE 1
Conceptual Paradigm of Automated Payroll System of
Renaissance School of Science and Technology
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Assumption

1. The Automated Payroll System for Renaissance School of Science and

Technology will be accepted.

Objective of the Study

The proposed system is intended to provide a user friendly system that

will compute accurately the monthly salary of the faculty teachers of Renaissance

School of Science and Technology

It is also design to secure payroll information by means of database and

security module.

The study aims to provide an automated payroll system that will rapidly

process payroll computation. It is also aims to design an one click management

of salary and employee record.

The study aims to create an automated payroll system with varied level

access control.

Scope and Limitation of the Study

This study aims to create a system for online computing of monthly salary

which helps not only the cashier department of the school but also it helps of all

the faculty teachers to compute their salary automatically. The researchers

conducted this study to enlighten and to improve the salary computation of the

faculty teacher every month and also to lessen the errors while computing the

monthly salary.
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The study will be conducted at Renaissance School of Science and

Technology in Morong, Rizal. The researchers will use fifteen (15) senior high

school teachers and fifteen (15) college teachers in said private institution during

the school year 2018-2019. They will be chosen as ta\a\a\he respondents to

determine the level of effectiveness and satisfactory of the system.

The researchers will use Visual Basic.Net for the design and coding and

MySQL lite studio for database. The system will run on computer desktops and

laptops.

The researchers choose to conduct this study not only for the

Renaissance School of Science and Technology but also for those schools who

wants their payroll system to have more improvement.

Significance of the Study

The present study endeavors to assess the present payroll system

employed by the said institution. Result of this research will improve the payroll

system. Furthermore the study will provide benefits to the following:

By using the Online Payroll System, the rate of efficiency and

effectiveness will improve and develop by providing:

Data security – this system use a password to protected database that

can be assessed by authorized personnel only.

Prevent error – support of the buck up and restore utility to minimize the

lost data of employees.

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Fast and easy to use – it is time saver, minimizing manual procedure and

updated program.

Automatic appearance of pay slips of the employee – a printed

papers support of updated program to compute automatically the

salary deduction and give the final total of the salary

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Definition of Terms

For the better understanding of the study, the following term are

operationally and conceptually defined.

Accuracy - The condition or quality of being true, correct, or exact;

freedom from error or detect; precision or exactness; correctness.

Applicability - It refers to applying or capable of being applied; relevant;

suitable; appropriate.

Clarity - It refers to the clearness or lucidity as to perception or

understanding; freedom from indistinctness or ambiguity and the state or quality

of being clear or transparent to the eye; pellucidity.

Completeness - It refers to having all the required or customary

characteristics, skills, or the like; consummate; perfect in kind or quality.

Modifiability - It refers to change somewhat the form or qualities of; alter

partially; amend.

Portability - Its refers to characteristic attributed to a computer program if

it can be used in an operating systems other than the one in which it was created

without requiring major network.

User-friendliness - Easy to use or understand and easily operated and

understood by means of a straightforward guide.

Workability - Capable of being put into effective operation; practicable or

feasible and cable of being worked, dealt with.

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