CHAPTER I

1.0 Introduction
Nowadays, factory is one of the most vogue industry in the country, but is the late
bloomers when comes it to computer-based systems. Factories were the ones who
manufacture or assembles goods and electronic devices. Whether it is for clothing,
assembling parts of cellular phones, computer chips or other types of appliances. Behind
these products are the workers who puts the pieces together, manually. Providing a
system that will manage all the employees pay slip within the company can have the
assurance of lessening more disputes and be able to work efficiently.
A system is an organized procedure or an instructional guide used by any
organizations to direct business operation in the different department. The APS or
Automated Payroll System allows the employees to view hours worked, salary, over-time
pay and deductions. And also have the option to print the pay slip upon viewing it.
The main objective of the system is to ensure the employers and the employees of the
detailed pay slip beforehand, to be able to check for errors or disputes, and this also help
owners and management comply with labor laws. And also help management to be more
organized and less time consuming, plus provide easy access of users to the pay slip. This
is a great help for the company since it makes the tasks much easier and faster.

1.1 Statement of the Problem

Wrong Salary computation and Salary Disputes has been a serious problem for
Zatco Systems Philippines, Incorporated. Not to mention that most of the procedures in
the system are still done manually. Their old payroll system has not been changed and
developed since it was first used.

1.1.1 General Problem

How to develop a computerized payroll system for Zatco Systems

Philippines Inc. that will provide an automated detailed payslip?
1.1.2 Specific Problems
1. How to improve the monitoring system that used to record the time in
and time out of the employees.
2. How to develop a module that will compute the number of hours
worked, gross salary, net salary and deductions of an employee.
3. How to develop a module that will manage employee's information

1.2 Background of the Study

Pay slip is basically the earnings which includes basic salary, travel allowance,
clothing allowance, meal allowance, medical allowance and others. Part of pay slip
includes deductions includes Employee Contribution and Taxes. Salary components
differs from company to company, but these are the basic contents of pay slip. Having
this in mind, the proponents proposed an Automated Payroll System for Zatco Systems
Philippines, Incorporated. The company is engaged in manufacturing office wares like
chairs, tables, dividers and cabinets.

1.3 Current State of Technologies

Technology is constantly improving, but not for Zatco Systems Philippines, Inc.
They still use the old method of calculating the pay for their employees. They issue the
employee's payslip and process salary dispute requests manually.

1.4 Objectives of the Study

The proponents of this study has decided to change the old system that is
currently being used by Zatco Systems Philippines, Inc. Primarily focusing on the

Automation of the system by developing Computerized modules to improve the payroll

system.
1.4.1 General Objectives
To develop an Automated Payroll System for Zatco Systems Philippines,
Inc. that will provide a detailed payslip to all employees.

1.4.2 Specific Objectives

1. To design a module that will improve the monitoring system that is used to
record time in and time out of the employees
A logging module will be developed to replace the current time logging
system, this will enable the system to automatically record the time in and time
out of the employees.

2. To develop a module that will compute the number of hours

worked, gross salary, net salary and deductions of an employee.
A module will developed to display all information taken from an
employee and display all hours and amounts associated with payroll earnings and
deductions for an employee.

3. To develop a module that will manage employee's information.

A module will be developed to reduce the risk of errors and to automate
the process of data.

1.5 Scope and Limitations

This study discusses about the importance of creating the system to the
following:

To the Owner, it will provide an accurate and detailed lists of hours

worked of employees. If factory is still on the productive side.

To the Management, this will provide an easy and faster way to address
errors or disputes without any advance computer knowledge.

To the Employees, this will provide the faster way to view and check for
disputes and wrong

salary amount.

1.5.1 Scope of the Study

This covers the process of preparing the pay slip of each employee , keeping the
records and easily computes the basic pay, overtime with night differential pay, pay
during holidays, legal holiday pay, gross pay, SSS contributions, Phil Health
contributions, Pag-ibig contributions, deductions and net pay. It also includes the features
that can Add Employees record, Edit Employees information, print or save the pay slip of
each employee.

1.5.2 Limitations
The system cannot generate report of appraisal and employee evaluation reports,
because it is not included in the system. It will only be used for viewing payslip, printing
payslip or any other payroll transactions by Zatco Systems Philippines, Incorporated. The
system would not work without a local area network and the employees would need to be
in the company's vicinity in order to view and print their automated payslips.

CHAPTER II
2.0 Introduction
The goal of the proponents is to improve the accuracy and efficiency of the
clients present system through automation. The system aimed to do ; regular update of
computer software products, track of unwanted computer use, reservation of computers,
account management for customers use and automation of billing for every transaction.
The system also aimed at providing an efficient and convenient way of decision making
by faster and complete report generation.

2.1 IT Theories