Chapter 1

INTRODUCTION

Background of the Project

According to (Cardiol, 1987), Computer is an effective material in many

organizations nowadays particularly in business and education. Its function is

undeniably superior compared to manual processes. For technology arises every

year, the fact that computers and other automation technologies are already a

big part of everyone’s daily living. Computer undeniably has the capabilities of

acquiring varieties of work, accomplishing logic calculations, data storage and

processing, and data retrieval operations in the form of sophisticated reports,

within less than a minute. For that reason, organizations began to admire its

functions and started using electricity powered machines for our daily lives

including office works such as tracking of employee’s payroll and pay slips.

As the technological advancement continues, more competitive global

market arises. For organizations and institutions merely uses modern

technologies to thrive for today’s economy. As of today, municipal offices are

being admired for their contribution for the economy’s progress. Workers greatly

contribute to a countries progress through their taxes being deducted in their

personal wages (Mahajan, Shukla, Soni, et. al 2015).

Every municipal office aims to have an equal distribution of employees’

wages. Calculation of employee’s taxes, benefits and other money related issues

regarding office negotiations are quite private and sensitive. Offices mostly
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acquire employees and personnel that are skilled in accomplishing jobs that has

regards on manual computation (Kaur, Grover, et. al 2012).

Though offices can have employees that have enough capabilities of

storing relevant data regarding employee-money related information, personnel

cannot assume the safety of files being kept in a corner and the assurance in the

accuracy of doing manual processes of employee’s payroll reports and pay slips.

Every municipality must acquire relevant, steadfast, dependable, and

accurate way of processing money storage and transactions. For every

employee wishes to have their wages in hand to be equal.

Bayambang Municipal office is being well-known for their creative and

hardworking employees. It is composed of many departments including

accounting office in which each employee’s wages are prepared by the use of

their physical timestamps and manual computation. Though it is said that the

office acquires productive accounting personnel, they cannot assure the file

security for generating dependable payroll reports and employee pay slips.

The Bayambang Municipal office mainly encounters time-consuming

salary preparation due to manual processing of employee records. Since most

staffs from the Human Resource department rely on paper to paper retrieval of

employee data, inaccurate computation is also an existing problem. The

proponents proposed the Bayambang Municipal Payroll System as an effective

aide to reduce to manual processes during employee profiling and monthly

payroll computation.
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In advancement, a modernized and cordial record the executives are

presented and created. Realizing that overwhelming manual calculations of

worker compensation can't be without a doubt trustworthy. Manual procedures

are a major waypoint for information control and data altering. A proposed

framework used to computerize procedures of everyday exercises like

remittance, benefits, and assessments appropriation.

Purpose of the Project

The main purpose of the project was to develop the Bayambang Municipal

Payroll System which will provide a better way of employee salary management

and monitoring each employee’s individual performance.

The project specifically sought to:

1. Render and allow HR personnel to easily handle employee tracking

2. Retain a historical record of employees that will be used for fast report

generation

3. Produce timely and accurate pay slips

4. Monitor employee attendance and working performance

Scopes and Delimitations

The Bayambang Municipal Payroll System is developed to help the

Bayambang Municipal Office’s Human Resource and Accounting Department in

managing the work force of the said organization. The proposed system has

three main modules namely Employee File Management, Log In, and Payroll

Processing.
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The first module is the User Log-In module which allows the user to gain

access to the system, depending on their level of access.

The second module is the Employee File Maintenance module which

allows users to manage individual employee profiles. The admin or the user can

have the capability of editing, adding and updating an employee profile and

transactions. It eases the work of the user by having this system functions.

The third module is the Payroll Processing which allows the user to

accurately compute the pay slip of each employee and generates reports for the

accounting section.

The project delimits the handling of applicants, management of leave and

benefit programs such as insurance, compensation, profit sharing, retirement.

The project also delimits the use of biometrics and hiring.

Significance of the Project

The proponents of the project believe that the following entities will benefit

from the result of the project:

To the Bayambang Municipal Offices. The proposed project will efficiently help

in the progress of the said organization. Offices’ transacts and data can be stored

on a systematized and organized way of recording.

To the Drawing and Disbursing Officers. The proposed project will give an

error free generation of pay bill for all employees. System will automatically

display and compute the bill excesses by each employee, making them manage

more their time to other incoming tasks and offices works.

To the Employees. The proposed project will make a secure way of keeping

employee records. Having the privacy of employee records and prevents from

the manipulation of some personal data by the unassigned employees. Direct

recording of transactions and employee files.

To the Human Resource Management Personnel. The proposed project will

generate efficiency improvements and better management of human resource.

System personnel can widen his/her time to focus to other given works by having

the ease of tasks, knowing that the system will be managed and operated

computerized.

Definition of Terms

The following terms were defined operationally as to how they were

specifically used in the project.

Deductions. It is the amount subtracted to the gross pay amount due of an

employee. Deductions amounts are based on the employee’s position and loans

regarding the payroll period.

Employee Profile. A set of records related to a specific employee. A profile that

contains his department, position, and other legal information.

Human Resource Management. Refers to the management of human capital

within a business and other organization. Managing tasks of every people who

are contributing within and throughout the organization.

Human Resource Management Office. A business or organization sector

responsible for managing human capital. Capable of generating reports in every

transactions of an employee.

Municipal Office Payroll System. A browser-based application designed to

handle human resources and accounting management processes specifically on

managing departments, organizing employee files and documentations, and

generation of reports of each employee.

Payroll. Summary of salary computation of each employee throughout the month

within a company or an organization.

Payroll Automation. A process that takes place to eliminate the manual process

of computation and generating payroll reports. Building a fast, reliable and

convenient way of estimation.

Pay slip. A written/encode document that is given to an employee at every end

of the week or month, prior to the company policy, which states how much you

earned and how much has been taken from deductions.