CHAPTER II

REVIEW OF RELATED LITERATURE

This chapter presents the different researches and literatures from both foreign and local
researchers, which have relevance in conducting the present study:

Although a lot of money is spent on IT web based like payroll system on any type of
business/Company, there is little solid understanding, regarding how payroll system affects or
help to save a lot of on keeping data or monitor employees. This study provides a review of
relevant literature and studies, with a focus on payroll system. Several studies have been
conducted in the past to solve the problem in using excel as a payroll system. The researchers
gathered these selected related literatures and studies to guide them in supporting their claims in
the study.
According to the researchers Aguilera Bronzas and Marqueses (2010) a great
payroll is really one of the most important issues to pay attention in almost every
company. It is impossible to handle payroll responsibilities with a pen, ledger sheet
and calculator, but nowadays it is more convenient for most companies to use
computerized payroll software

2.1 Novel Robust Payroll Management System For Micro, Small & Medium Enterprises
Payroll Management System is intended to make the current manual framework
programmed with the assistance of modernized gear and full-edged PC programming, satisfying
their necessities, so their important information and data can be put away for a more extended
period with simple access and control of something similar. The expected programming is
effectively accessible and simple to work with. This application keeps up with the data and
shows automated information without getting duplicate entities. This system portrays as to how
we can oversee client information for better execution and offers good type of assistance to the
user.
Pardeep Kaur; Shivansh Sharma; Birinderjit Singh Kalyan2023 International Conference for
Advancement in Technology (ICONAT)

2.2 Wireless Biometric Attendance Management and Payroll System

An automated system is a significant consideration to the increasing number of employees.
Additionally, the system is recorded with the use of biometric data. In this way, it will
increase the security of the company’s record and avoidance of possible mischief of its
employees. The system also creates a database that will ease the access, manage and
update of information of the employees. In addition, it will also record and compute for the
payroll of the employees. The main objective of this design is to implement an automated
system by using biometric data for its payroll and attendance through wireless network.
Specifically, (1) to record the biometric data of the employee into the database (2) to
transmit the data through Zigbee network technology and (3) to monitor and use the
information in the database for its payroll and attendance. The design will significantly
improve the way of checking the attendance and calculation of payroll that will help the
company to progress and to be updated in the world of automation. It will also decrease
the usage of paper since the attendance of the employees will be stored in the
database. Villarama, J. D. A., Gernale, J. P., Ocampo, D. a. N., & Villaverde, J. F. (2017).
Wireless biometrie attendance management and payroll system.

2.3 Evaluation of Internal Control of Payroll System in Hospital

The purpose of this study was to determine the evaluation of internal control and payroll accounting
systems in hospital. In this research, the authors used a descriptive method of analyzing and collecting
internal controls in the payroll accounting system in using primary data such as interviews with parties
company and secondary like organizational structure. Data collection techniques were carried out using
observation, interviews, and literature techniques. From the results of the study it can be concluded that
the honorarium employee payroll system already running well can be seen from the flowchart which
explains the separation of functions from the staffing department that makes payroll, the finance
department checks the payroll and then gets to the Treasurer who directly distributes employee costs
and then does the payment process and the accounting department verifies the cash proof transaction
out and take notes in journals and ledgers in order to be able to account for any payroll transactions
made for honorary employees. Rumapea, M., Bagariang, N., Hemalli, D., Purba, P., Jamaluddin,
Purba, E. N., Pasaribu, D., & Sagala, E. (2019). Evaluation of Internal Control of Payroll System
in Hospital

2.4 A Review of Computerized Payroll System

The goal of this review paper was to a web-based payroll system using .NET, Html, CSS,
SQL, Ajax and JavaScript. This computer-based Payroll system is accessible on the internet and
calculates, maintains and records the payroll information of employees. This Application will
help to automate payroll system of an organization. Multiple authorized users will be able to
login and logout from a web browser. Login checks (username, password) are controlled by
administrator. Administrator will have total web-based control to completely customize the
payroll system. HR of the company will be able to authenticate new employees, update existing
employees' pay, view reports. The system is user-friendly. Whenever there is an error in entering
data, it immediately shows an error. The application is equipped with tools for updating salary
records, tax calculation, add new allowances, leave appraisal or request deduction and savings
and many other features that are easy to be operated by users. The system has also provision for
full salary history including all payroll elements and changes that have been implemented. The
prototype computer-based payroll system is complete in itself and ready to be implemented but
changes and growth in requirements will be a reality on every software project so there is need to
timely update them. The same applies to this payroll system [1].
Kritika Mahajan1 , Shilpa Shukla2 , Nitasha Soni3 Student, B.Tech (CSE), Lingaya’s University,
Haryana( Faridabad), India1 Assistant Professor, CSE, Lingaya’s University,
Haryana( Faridabad), India2,3 (2015).

2.5 Payroll Management System: A Review

“Payroll Management System” software developed for a company has been designed to
achieve maximum efficiency and reduce the time taken to handle the payroll activity. It is
designed to replace an existing manual record system there by reducing time taken for
calculations and storing data. The system uses C#.Net as front end and MS SQL Server as a
backend for the database. The system is strong enough to withstand regressive daily operations
under conditions where the database is maintained and cleared over a certain time of span. The
implementation of the system in the organization will considerably reduce data entry, time and
also provide readily calculated reports.
Miss. Priyanka D. Singh1 , Miss. Suvarna S. Parteki2 , Miss. Ashwini N. Shingade3 , Miss.
Shruti P. Wankhede4 , Prof. Pooja H. Rane5. (2022).

2.6 The Evolution of payroll software that can replace the manual method in Indonesia

The development and evolution of software related to the payroll process is very important not
only with regard to employee databases but also to the compensation of each employee whose
data is very confidential, the payment system to be carried out, the accounting journal that can be
generated, data security, calculation of income tax as well as employee’s social security, health
and pension calculations. This research is to ensure that the impact on the use of software
Krishand1Payrollvery helpful in the process of replacing Microsoft Office Excel with various
business considerations that are better, more accurate, faster and safer. The method in this
research uses descriptive methods to explain problems that occur at this time or occur as they
should when the research was carried out. Computer-based accounting information system
related to payroll, in this case is done by Krishand1Payroll can help companies to be able to leave
processes that are done manually using Microsoft Office Excel and this can improve company
performance and data security because of the security access facilities for administrator,
application, operator, and data entry functions. And also, all calculations and payments become
faster and more accurate.
Yulisfan, Y. (2021, May 4). THE EVOLUTION OF PAYROLL SOFTWARE THAT CAN
REPLACE THE MANUAL METHOD IN INDONESIA. YULISFAN | Ecoforum Journal.
http://www.ecoforumjournal.ro/index.php/eco/article/view/1216
2.7 Employee leave Management System

Employee leave management system combine number of processes and systems to automate and
easily manage employee data, leave request, track and grant leave. In many institution staff are
entitled to different types of leave, these leave are granted according to institution policy.
Administrative department is mostly responsible for managing and granting leave request. To
this end, most institution used conventional method of requesting, granting and managing leave.
In conventional method, leave is manually request by writing letter to head of department. The
head of department minutes and forward the request to higher staff for approval. This method is
time consuming, prone to error, require more paper work and difficult to manage. Hence the need
for an automated leave management system that is faster, error free, less paper work and easy to
manage. The system was achieved by developing an automated employee leave management
system using the three tier software architectural model. The System is implemented using web
based technologies which include CSS, JS, HTML, MySQL, PHP and runs on Windows
operating system. . The overall functionality of the system shows that it work satisfactory and the
result obtained shows that the system is error free, faster and allows staff to request for leave in a
timely manner. Hence the system can be used by both academic staff and administrative
department of an institution for effective and efficient management of employee leave.

2.8 Employee Payroll Information System on Company Web-Based Consultant

Engineering Services

Consulting Engineering Services is a company engaged in building construction consulting

services. In this company in processing employee salaries still use manual calculations and use
the Ms. Excel program. This can lead to errors in calculating employee salaries and the process
of printing employee salary slips which takes a long time. In solving this problem, the authors
designed an employee payroll information system. In this design, the authors use the PHP
programming language. The method in this research is the Waterfal Method. The method in this
research is through observation, interview, documentation and literature study. The system
design is made using Contex Diagram, HIPO, Input Output Design, relationships between tables
and database design. The system is made in a program with the PHP programming language with
a database format using MySQL. The result of this design is to produce an application program
that will be used to process web-based employee salaries in CV. Consulting Engineering
Services and it is hoped that companies will find it easier to input data and compile payroll
reports to be faster and more efficient.
Adamu, A. I. (2020). EMPLOYEE LEAVE MANAGEMENT SYSTEM. Fudma Journal of
Sciences, 4(2), 86–91. https://doi.org/10.33003/fjs-2020-0402-162