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Payroll system Essay


Information Technology is the study, design, development, implementation and support management of information system. It helps to produce, manipulate, store, communicate and/or disseminate information. We used the term information technology or IT to refer to an entire industry. In actuality, information technology is the use of computers and software to manage information. In some companies, this is referred to as Management Information Services (or MIS) or simply as Information Services (or IS). The information technology department of a large company could be responsible for storing, protecting processing, transmitting and retrieving the information as necessary.

Nowadays all establishment 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 human to solve and understand complex problem and analysis such as computational need of human. Implementing such kind of payroll system make their transactions easy and accurate and to secure their files and data. It will be time consuming to the administrator to locate such file in order to provide the teachers request. And by doing so the administrator can easily compute the salary of a teacher and deduct the necessary taxes through their computers. It would going to be efficient for an establishment will going to consume workers just to manage the system. Only such that the teacher should used his/her valid ID to enter on school and for requesting area he/she only needs to present the teacher id to process his/her request and all the data transactions will be going to save into the administrator account.

By proposing this kind of system might can do help into a certain said school to manage their payroll system in a fast, easy, efficient ways. Hoping that it would help a lot to the management to easily control their system and performed it excellently through the cooperation of their employee and staffs.


Computers have the great impact on the profession of accounting. With the rapid growth of technology today, there is no doubt that computer will become a common asset in all profession. As computer technology changes at such fast phase, many businesses sectors try to cope up by upgrading computer system constantly in order to stay competitive. The multi-function ability of technology for its advance system is also an important factor for a company to use software. Payroll Management System by using input device such as computer to store data is one of the software that the professional is develop, the system is good for its specialty in the fields of accounting, It is easy to use and effective and efficient in organizing and calculating the salary transactions.

While in manual system payroll are difficult and hard-work, you need more time in order to make your school payroll computations accurately, manageable and reliable to your employees. In addition, in manual computation we cannot say that, there are no human errors in computing the payroll, same in computerization process, but similar to the manual process. And because of the bulkiness of the school employee that needs to pay for their services, the school needs more time to calculate and to reconcile their payroll. In order to solution this problem, they should developed the alternative solutions using the advance technology, by merging the software and hardware technology. It is a Computerized Payroll System. The system will give a big relief to the employee and employers as well, to minimized their time consuming for inputting information and computations to the payroll process.


Technology pretty much touches all of our lives in some way and hence technology news is a vital resource that can keep us up to date with developments and ways in which the world will be changing. For instance, the onset of digital television is something that will affect most people; news stories that inform us of the dates for the switch over are vital so the average member of public can understand when their analogue signal will be turned off. In the same way, news of technologies that may make our cars safer and more efficient is important to all those who drive on our roads. Today’s world is full of pieces of technology that we take for granted, the microchip has truly revolutionized the way in which we live and do business.

The world we see would not be recognizable to people of a few generations ago and nowhere is this truism greater than in the world of computing. Hence it is important to stay up to date with technology news; while many may think that this type of news is purely for geeks it is clear that all of us should have at least a passing interest in news of technological developments. The phenomena is only set to continue, as computers become more powerful and have greater and greater applications it will not be long that we will plan our lives around the computer. This is not an attempt to act as a harbinger of doom, it is just theorizing on ways in which technology will impact upon the human race. Computers are used in every industry and type of business today. They come in many different forms and new uses are being developed constantly.


Our task is to creation a new payroll system. The old system is outdated and no longer adequately manages the payroll process and the entry of employee time card information. Therefore, manual intervention is required to process the payroll. In addition to the preexisting category of salaried employee, which the current payroll process does support, our organization now accommodates two new types of employees: those employees working on commission, and those employees working on an hourly basis.

The current payroll process doesn’t support these two new employee types, which are described in detail later in this problem statement. In addition to accommodating all employee types, as well as ensuring that our system can accommodate newly created categories of employees in the future, the system must also allow each of these employees to save his or her data information or daily time record through presenting his/her valid ID, or any valid data that support his/her request. The Administrator is the only assign person who is capable to have an account and to access in order to save and retrieve such kind of teachers list of data’s being given . The payroll process can process only “signed” time cards, which are those time cards that the employee has identified as accurate. Overall, the system will store information about the approximately 2,000 schoolteacher employees. The payroll process must run on the fifteenth and last day of each month at 12:00 A.M.

Eventually, the system must enable employees to maintain their direct request information via the system as well. However, this feature is beyond the scope of the initial release. If we basically compare to the manual process and computerized process. The administrator consumes a lot of time in calculating each employee’s Salary and recoding as well. It took several hours to finish a manual calculation for the Employee’s salary. It also consumes a lot of time to search for their names one by one and it’s not well organized. After a manual calculation has been done, the user still has to encode it for a record. The computation that have been made is also need to be written on a brown envelop together with their cash pay. While in computerized payroll system process the administrator will save a lot of time with less effort in calculating each employee’s Salary and recoding as well.


In the field of computer and technology, there always an option to automate things likes payroll system. But of course, A feasibility study should be conducted in order to see the benefits of computerized payroll system over manual payroll system as well as other alternatives. At first, you should study the organizational systems such as the users, policies, functions and objectives. Consider also the problems existing over the present systems like redundancies, inconsistencies and slow services. Also, know the constraints such as the nonfunctional requirement.

After analyzing the present or current system, possible alternatives should be presented. Sticking to the current or present system is always an alternative. Advantages and disadvantages of each alternative should be discussed. In addition, the computation of payback analysis, net present value analysis, and return on investment analysis should be included in your feasibility study. If there is a feasibility study, the best alternative is to be preferred by the management because there a chance of comparing alternative. Feasibility study will determine the best solution to the
problems. After all, feasibility study is written to assess each alternative and come out of the best alternative that will benefit the intended people involved in this study. This project proposal is conducted in order to give and see the benefit of computerized payroll system over manual payroll system as well as other alternatives. In manual payroll system accounting has a hard time to do all things such kind of work like saving all the data files of their school teacher employee and do such kind of mathematical computation to calculate the salary of the teachers wages and taxes deduction. Having a hard time to locate such requested files to processed. That’s why we do proposed this kind of system to letting their realize that there is such a possible way to make their works faster and completely done .

The only main advantage of this system is that they can process data and compute salary more than a manual form can do. But also we cannot say that this proposed system is such a perfect idea theres also a disadvantage on it. Using a computerized payroll system comes with its own set of problems, such as the need to protect against data loss through power failure or viruses, and the danger of hackers stealing data. Computer fraud is also a concern, and you need to instigate a system of controls for who has access to the information, particularly teacher information. If there is a security breach and data is stolen, management can be held personally liable for the loss of data. You also need to make sure that the data has been correctly entered into the system, as a mistake in data entry can throw off a whole set of data. A payroll system involves everything that has to 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 taxes to the government.


Speed in processing payroll system will have a faster performance by means of decreasing the manual input areas.

Mathematical errors will be prevented by automatic computations that the proposed, system will provide and you may not have to worry about having
financial or legal trouble. Do the salary computation/transaction with the deduction of taxes through computerized system for fast processing.

Tallying of time cards will be done automatically by only presenting /tapping his/her valid teacher ID to the accounting department . In the proposed system the administrator is the one responsible in computing that the time the employee worked.

The proposed system will record all data in all reports at the same time so you can make sure they are consistent and it also saves time.

Employers will never have to spend much time in keeping up to date with taxes and deductions because the system will be designed updated to such deductions.

Storage of files will be safe and secured for which only the administrator has the only have the privileged and also not easily be accessed.

Easy to manage and handle by a certain person , doing such work like saving, retrieving and computing faster.

The teacher can access their data files but only just to view it to make them updated regarding with their salary transaction.


In less than a generation, computer technology has revolutionized business all over the world. This has brought about changes in the area of business, finance, industry, government, agriculture, education, health care, sports and even on our personal lives. Today, computers do much of the works. Data collection continues to become easier and easier, data processing is getting faster and faster, mathematical calculations continue to be performed with increased precision and information is being provided to users in generally more useful forms. Such that was made possible through the use of electronic files and database.

This chapter presents some of the previous related works relevant to the understanding of the problem. In order to gather information, We used books, thesis and encyclopedia. The wide spread development of digital technology also results to parallel advance in software, which allows this technology to be used by persons other than computer experts. The database has become a central organized framework for information system, taking advantage of the concept of data independence that allows sharing among diverse system – organized collection of data maintained and used with the aid of management information system (mis). It is a state of the art information system process and retrieve information ever faster, they are more robust in terms of the volume of data that they can process and in terms of reliability; and their performance is more cost-effective.


A Documentation
Presented to the Computer Studies Program
Father Saturnino Urios University
Butuan City

In Partial Fulfillment of the
Requirements for the Subject
IT 304

Rheman Tidalgo
Analyn Rivera
Ailyn Son
September 19, 2013


This project proposal is dedicated to the
BCSAT School Department
And to the Teachers
Faculty Staff
Accounting Department


Background of the Study 1 Review and Literature 1 2. SIGNIFICANCE OF THE STUDY


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