Payroll System essay by Jamey Warring

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 in compliance 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 by nonexempt 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. Companies also must withhold Social Security and Medicare contributions from employees' wages and pay a matching amount.As the student of Information Technology at Saint John Bosco I.

A.S., I have tasked with building a new payroll system to replace the existing system which is hopelessly out of date. Saint John Bosco I.A.S.

needs a new system to allow teachers and employees to record time card information electronically and automatically generate paychecks based on the number of hours worked.The problem and its background: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 teachers and employees’ info like name, working hours, wages etc 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.

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 Saint John Bosco I.A.S. for a better manageable of a business.

The Proposed Computerized Payroll System will give a big relief of the employee and employers as well.One of the most requested features of the new system is employee reporting. Employees will be able to query the system for number of hours worked, totals of all hours billed to a project (i.e.

, charge number), remaining vacation time, etc. The reporting feature will be available either through the desktop or the web interface.Statement of the Problem: 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.Hypothesis: As the student of Information Technology at Saint John Bosco I.

A.S., I have tasked with building a new payroll system to replace the existing system which is hopelessly out of date. Saint John Bosco I.A.

S. needs a new system to allow teachers and employees to record time card information electronically and automatically generate paychecks based on the number of hours worked.Significance of the Study:To Accounting Department and Payroll Maker of Saint John Bosco I.A.S. The proposed system will help the accounting section of Saint John Bosco I.

A.S. especially the Payroll maker/bookkeeper and the Finance Officer. 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.To Proponents This study will help the proponents to enhance the ability on how to create an understandable computerized system in an easy way.

This will serve to the proponents as a challenge to do a better system.To the other ResearcherThis study gives knowledge to the researcher on how to create a Computerized System in understandable way. This will serve as a fresh ground for the researcher whose study will be related in the field of Information Technology.Scope and Limitation:Scope This study is designed to develop a Computerized Payroll System for Saint John Bosco I.

A.S. It covers the process of preparing the Pay slip of each employee, the regular and job order employee, keeping of records safety and computing the exact wages of each employee. Including the stored report list of employee such as Monthly Salary, Basic salary, overtime, Gross payment, Net pay, and Deduction such as withholding tax, SSS, and Medicare, SSS loan, Advances, Multi-purpose loan, PAG-IBIG Contribution, CAPELCO loan, Cash Advance, Bond, Energy Sales, Motorcycle, Canteen, under time, Cigna, WELCA, union loan, Lot/housing loan, health Care and AR. The proposed Payroll System for Saint John Bosco I.A.

S. is expected to generate Pay Slip of Employees, Report list of employees, Remittances for respective agencies, Payroll register of regular and job-order employees, and Payroll form for every pay period.LimitationThe proposed Computerized Payroll System for Saint John Bosco I.A.S. does not support network topology implementation and online program or online transaction.

Definition of terms: Payroll System A payroll system is a computerized technique that is used to calculate the sum of salaries employees who need to be paid in an organization. The name, address, Social Security number and the bank account numbers are the key elements in a payroll system. This method saves time.