ABSTRACT
This project work ‘Design and implementation of computer based payroll system’ is aimed at creating a computer based payroll system. payroll is a critical operation for every organization to pay employee accurately their salary and enrollments on time. The idea of taking control of employees pay calculations are quite tedious if done manually and require more effort and time mainly for big organizations. Hence if this process is automated, it would be of great benefit as it would require less time to calculate the salary of the employees. The software for payroll management system service on the cloud is provided as a solution in this paper. This system provides multiple user data access. Each user like employee or HR or admin can login into the software by writing username and password which are allocated to them from the company It involves keeping track of hours worked and is capable of keeping a record of employee data including their pay, allowances, deductions and taxes on monthly bases so that fresh definitions are reflected from the month onwards, which leaves all the past data intact. The proposed payroll system is advantageous as it provides a user friendly environment and also increases security and minimizes human calculation errors. Also, the aim is to automate its existing manual system by the help of computerized equipments and full-fledged computer software, fulfilling their requirements, so that their valuable data/information can be stored for a longer period with easy accessing and manipulation of the same. Basically the project describes how to manage for good performance and better services for the clients. The model driven development is adopted because the (MDD) methodology is suitable for the payroll management system. The design and functions of the computer based payroll system were implemented with Hyper-text Pre-processor (PHP), Cascading Style Sheet (CSS) and Hyper-text Mark-up Language (HTML). This study was carried out to first of all to eliminate a manual payroll system and bringing up a web based payroll system that allows a dedicated payroll software. A manual system can result in payroll errors and is usually a slow, laborious process. Web based systems offers a number of advantages, including increased accuracy and speed.
TABLE OF CONTENTS
Title Page i
Certification Page ii
Approval Page iii
Dedication Page iv
Acknowledgements Page v
Abstract Page – vi
Table of Contents vii
CHAPTER 1: INTRODUCTION
1.0 Background of the Study 1-2
1.1 Statement of the Problem 3-4
1.2 Objective of the Study 4
1.3 Significance of the Project 4
CHAPTER 2: LITERATURE REVIEW
2.0 Introduction 5
2.1 Theoretical Background 5-12
2.2 Review of Related Literature 12-18
CHAPTER THREE: SYSTEM ANALYSIS AND DESIGN
3.0 Introduction 19-20
3.1 Description of the Existing System 20-21
3.2Analysis of the Proposed System 24-25
3.3 Design of the Proposed System 33-35
3.4 System Architecture 35-36
CHAPTER FOUR: SYSTEM IMPLEMENTATION
4.0 Introduction 40
4.1Choice of Development Environment 40-45
4.2Implementation Architecture 46-47
4.3 Software Testing 48
4.4 Documentation 48-49
4.5 User Manual 49-50
4.6 Source code listing 50
CHAPTER FIVE: SUMMARYAND CONCLUSION
5.0 Summary of Findings 51
5.1 Conclusion 52
5.2 Recommendation 53
REFERENCES 53
APPENDIX A
LIST OF FIGURES
Fig 2.1 Sample of phpmyadmin 12
Fig 3.0 Use case diagram 28
Fig 3.1 Activity diagram of employee 29
Fig 3.2 Activity diagram of admin 30
Fig 3.3 Sequence diagram of admin 31
Fig 3.4UML sequence diagram of the web based payrollsystem 32
Fig 3.5 Login form 35
Fig 3.6 Index page 35
Fig 3.7 Input Salary Rate 36
Fig 3.8 Salary Rate Changed 36
Fig 3.9 Deduction 37
Fig 3.10 Deduction update 37
Fig 3.11 Add Employee 38
Fig 3.12 Overtime 38
Fig 3.13 Employee page 39
Fig 4.1 PhpMyadmin 43
Fig 4.2 Xampp server 46
Fig 4.3 Implementation architecture 47
Fig 4.4 Admin login flowchart 48
LIST OF TABLES
Table 3.1 Deduction Table 33
Table 3.2 Employee Table 33
Table 3.3 Overtime Table 34
Table 3.4 Salary Table 34
Table 3.5 User Table 34
CHAPTER ONE:
1.0 INTRODUCTION
1.1 Background of the Study
A payroll is a company’s list or records of its employees, which is often used to refer to the total amount of money that a company pays to its employees.
The term Payroll refers to a series of accounting transactions involved in the process of paying employees for the services rendered after taking all the statutory and non-statutory deductions into account, in conformance with the terms of employment, company policy and the law of the land i.e., payment of payroll taxes, insurance premiums, employee benefits and other deductions. An efficient payroll system facilitates an error-free, accurate and timely employee payment while ensuring that the employment is well within the valid work permit
A payroll system is software which organizes and arranges all the tasks of employee payment and the filing of employee taxes. These tasks may include keeping tracking of hours, calculating wages, withholding taxes and deductions,
Net pay, Payroll software plays several roles for the user, the employees and the company, such as: giving you supper easy ways to manage employee calendar (e.g, deduction, and overtime), gives you latest tax updates you when by notifying you when the updates arrive, allows you to quickly and easily generate payslips for all your employees, serves as a reminder. Payroll also makes deductions from employees wages for taxes, wage garnishment, health and life insurance, spending accounts and retirement investments. Payroll works with your accounting department to ensure that wage deductions and other payroll expenses are paid and properly reported.
In an organization, there are several departments and each department has a payroll section to manage its payroll activities. Each section has to perform necessary personnel operations like data collection and preparation, entry, updates, monitoring and reporting of data. Many of these existing practices and procedures need to be reassessed at this time of changing needs, changing demands of employees and changing technologies So an organization needs an integrated web based payroll system that would integrate personnel and pay- roll related data collection, processing in individual departments and payroll audit in a more efficient and streamlined way. With this computer based payroll system, payroll section would be able to keep a record of employees including their personnel data, pay band, allowances, deductions, savings and taxes etc.. Net pay of each employee is calculated by using the information about his allowances and deductions. All these complex calculations have been incorporated herein. Many optional allowances and deductions for the employees are added by specifying the corresponding details. The individual pay slips and deduction vouchers are printed out as a receipt. Pay bands, grade pay, allowances, deductions and tax information are updated if there is an amendment in salary structure.
A payroll is a list of the employees and the payments due to each employee for a specific pay period. A pay period is the amount of time over which an employee is paid. Most businesses use weekly, biweekly (every two weeks), semimonthly (twice a month), or monthly pay periods.
The payroll is a major expense for most companies. To ensure accurate records, most business set up a payroll system for recording and reporting employee earning information.
Payroll is an application that lends itself well to the computer because of its repetitive procedures and calculation. A Web based payroll system can perform the same basic function as those performed manually by payroll clerk. The important differences are the computer’s speed, accuracy, reliability, and ability to easily generate reports. In a web based payroll system, the computer stores data such as an employee’s name, address, social security number, marital status, number of withholding allowances, pay rate and voluntary deductions. At the end of each pay period, the operator enters all payroll transaction data, such as regular and overtime hours for each employee and deduction into the computer. The computer calculates all withholding taxes and other deductions and accumulates and updates the earnings and withholdings.
Payroll System is 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 Information System, offers efficient features and functionality to manage company’s expenses.
1.2 Statement of Problem
- Calculating salaries through manual operation is burdensome and stressful.
- Difficulty in handling personnel records and inaccessibility of information when needed
- Overpayment/Underpayment of salaries
- Delay in payment of staff salaries because too much time is spent in preparation of the payroll.
- The use of paper to keep pay details about each employee which results in too much paper work.
- There is less security in the manual system
1.3. Objective of Study
The objectives of this study is to design a computer based payroll system for an organization.
Implementation of a computer based system for calculating basic salary and allowance of staff.
Implementation of a computer based payment platform.
Implementation a system that accurately stores employee data and retrieves payment history when needed.
Implementation of a computer based payroll system that can calculate transactions easily and summarize all the deducted contribution of the employee and net pay
1.4 Significance of the study
The purpose of this study is to have a better service for the employee and less error for their payroll system.
The study will aid in reducing errors, fraud, increase speed and also aid growth in organizations if successfully implemented. Manual payroll systems in organizations will be totally eliminated with this Web based system in place.
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