Company's Online Payroll System

This chapter presents a brief discussion and introduction about the proposed system, the Online Payroll System. Its conceptual framework, the process of the existing manual based system as well as the automated process of the proposed system, the problems and the possible ways to minimize the hassle of the existing system, and the objectives and significance of the study.


Every employee needs to be paid for the services he provides. For this to happen, the employer must have a payroll system in place.

So obviously, there are benefits to be derived from using a payroll system. A payroll system is the method used by payroll professionals to pay employees for their services.

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. It makes efficient use of the advance technology and has ambition to discover more.

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. The program also allows the monthly payroll schedule to be calculated accurately. Just by having all employees’ info like name, working hours, pay rate many others to enter in the database. Therefore, payroll can be done with the guide of the program. The system is good in for its specialty in the fields of accounting.

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It is easy to use, effective and efficient in organizing and calculating the payroll. In addition, this study aims to develop a reliable and manageable computerized payroll system for Eastwoods Professional College of Science and Technology for a better manageable of a business. The Proposed Online Payroll System will give a big relief of the employee and employers as well.

Payroll consists of the process by which a business pays its employees for work performed during a specific period. A payroll system allows businesses to follow a set series of processes in order to make timely, correct payments incompliance with government regulations. A payroll system may be manual or computerized and handled in-house or outsourced to another provider. The payroll process typically includes calculating employee pay, recording payroll transactions and determining and paying payroll taxes. A company must have in place a timekeeping system that accurately reflects the hours put in employees as well as the regular salary payments for exempt workers. Employers typically withhold federal income tax from employee earnings; at the end of the year, they must report all wages, tips and other compensation paid.

The solution has to take care of calculation of salary as per rules of the company. This Online Payroll System is a full-featured system that manages financial information of every employee in an organization. It computes and processes the payroll in the certain payroll period. This Online Payroll System is also a flexible compensation administration solution. It is designed to help human resource professionals as well as finance and accounting personnel to manage employee compensation, deductions, allowances, and benefits in an organization. The system is integrated with the Employee’s information, offers efficient features and functionalities to manage company’s expenses.

Background of the Study

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 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 beat 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. An Online Payroll System will not only provide accurate calculation and fast process of Payroll transaction but it will secure data through security implementation and accordingly arrange files provided by a well-designed database that will produce a paperless environment.

Conceptual Framework

The group gathered some data and information by conducting feasibility studies on heads of every department in EASTWOODS Professional College of Science and Technology by conducting an interview with them on how the user monitor and manage the items respectively, specifically to the main user of the inventory which is the admin.

  1. Process of the Existing System
  2. Process of the Proposed System

Statement of the Problem

The existing system expected to encounter problems with regards in the manual computation of the employee’s income. It might have an error in the computation because it is manually calculated. Moreover, the manual system needs so much effort and spends so many papers which is obviously expensive. Due to this, the developers think of the different possibilities wherein, the problems that were encountered in the manual-based payroll system will be taken away. The study intends to minimize the hassle in bookkeeping and calculating the employee’s income.The group seeks to answer the following:

  1. Can the system lessen the hassle in data storage and calculation of employee’s income of the payroll systems?
  2. Can the system be able to surpass on the following criteria: Accuracy, Security, Reliability, Accessibility, Efficiency ,Flexibility, Effectiveness and Functionality.
  3. From manually to online way of data storage and calculation of employee’s income in the proposed payroll system, what are the different advantages?

Objective of the Study

General Objectives

To develop a network-based payroll system for Eastwoods Professional College of Science and Technology, that is user-friendly, more accurate, more efficient, and can easily produce reports of the transactions faster.

Specific Objectives

In order to fulfill our objective, we will observe the following:

  1. To conduct an interview about the current payroll system.
  2. Observed how the current payroll system performs the operations.
  3. To identify the different problems of manual payroll system.
  4. To help the municipal hall and the employee to make their work faster and shorter.
  5. To identify problems in using the system through data flow diagram.
  6. To design a new system that is an online based.

Significance of the Study

  1. Economic Significance – For the system is paperless, the proposed system is economically significant because it can lessen the expenses such as spending money for buying papers.
  2. Educational Significance – The proposed system is educationally significant because the administrator may discover some new learning on how to develop and improve the system so that it become more reliable and more useful.
  3. Operational Significance – The proposed system is very significant when it comes to the operation because it can avoid the hassle in calculating the employee’s income. Moreover, through the proposed system, it can lessen the error in calculation. Also, the data encoded in the proposed system is secure when disaster comes likes flood, typhoon, tsunami and many others.
  4. Legal Significance

Scope and Limitation

The scope of the developed system is to generate an Online Payroll System which is capable of calculating the employee’s income. The main user, which is the admin can use this Online Payroll System to calculate and store the encoded data online. The proposed system can automatically calculate the employee’s income after the admin encode all the information needed. Compare to the manual based system, this is more accurate, fast and easy to use. Moreover, every employee can access the Online Payroll System so that they can monitor their income individually. The project is developed by the Administrator and it will work only in EASTWOODS Professional College of Science and Technology. The proposed system is accessible in all web browser such as Google Chrome, Mozilla Firefox, Opera, Internet Explorer and many others. There are 2 users that can access the system, the Admin and every employee. The Admin can view reports of the calculation of employee’s income. The proposed system is useful as long as the internet connection is present.

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Company's Online Payroll System. (2016, May 10). Retrieved from

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