Payroll System

AcknowledgementI would like to express my special appreciation and

gratitude to my advisor Professor Mr, Al Delizo Sabiaga, you have been a tremendous mentor for me. I would like to thank you for encouraging my research and for allowing me to grow as a researcher. Your advice on both research as well as on my career have been priceless. I would also like to thank Mr, Cervin Colasito for serving as one of my committee members even at the most difficult times. I also want to thank you for letting my defense be an enjoyable moment, and for your brilliant comments and suggestions. I would especially like to thank College of Saint Adeline Sucat Branch. All of you have been there to support me when I applied hard work and patience in collecting important data for my Payroll System thesis.

Special thanks to my dear loved ones and friends, words cannot express how grateful I am on my behalf.

Your prayer for me was what sustain me this far. I would also like to thank all of my groupmates who supported me in writing, and incented me to strive towards my goal.

Besides my advisor, i would like to thanks the rest of my thesis committee for their insightful comments and encouragement, but also for the hard question which incented me to widen my research from various perspectives.

Introduction

Payroll consists of the process by which a business pays its employees for work performed during a specific period. A payroll system allows business to follow a set of series of processes in order to make timely and correct payments in compliance with government regulations. A payroll system maybe manual or computerized and it can be 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 time keeping system that accurately reflects the hours put in by non-exempt 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 payments.

Background of the study

Primarily payroll can trace its root back to bookkeeping in most industrialized nations. As trade and business has developed on large scale. It has developed into something much more complex. Some companies need to track their employee’s taxes. Changing it with the need for accurate and efficient payroll solution. In 7000 BC, Archaeologist found evidence of payroll record it was carved on a stone.

Statement of the problem

An unbiased system for strong, editing and updating records are needed to achieve an accurate, efficient, and reliable managing system.

These are the following questions that can resolve the greatest problem that certain companies encounter.

1. How can this study help the company’s existing non-computerized system?

2. How can the administration manage this system?

3. What is the use of a payroll system?

4. How does this system will help the employees?

5. What are the advantages of this system?

Scope

-It covers the time-in and time-out of employees through computer database, specifically through an admin’s database records.

-It also covers the process of preparing the pay slip of each employee, cash advances, charges, keeping the records and easily computes basic payment, regular overtime

Pay,overtime with night differential pay, pay during day off, special and legal holiday pay, gross pay,cash bond, loans, cash advances, charges deductions and net pay.

Limitations

-The system cannot generate report of appraisals and evaluation reports of the employee because it was not included in the system.

-The system will only be used for payroll transactions by the company. It will not be applied in any other company.

Significance of the study

The proposed system will help the company, especially the payroll maker/book keeper. It will help to lessen the time and effort of the payroll maker/bookkeeper preparing payments of employees. The system develop can accommodate changing figures and produce a paperless environment through well design database.

Employees usually represent the largest expense in companies. Business owners usually spend copious amounts of time hiring, training and maintaining sufficient employment for their business operations. The payroll system represents an accounting or finance function business owners use to pay employees for their labor. Payroll systems can be internal or external, depending on the business owner, knowledge and experience.