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Chapter 1
Introduction
1.1 Project Context
Time keeping and payroll system are only some of the requisite in the field of
office management. Time keeping is the act, function or process of keeping time
while payroll is a pay masters or employers list of those entitled to receive
compensation at a given time and of the amounts due to each the sum necessary for
distribution on the payroll.
Today, with the aid of technologies, companies are now using office automation so
they could work faster and easier. One of the automated systems being use by the
companies is the use of automated time keeping and payroll system. Time keeping
and payroll system must be designed to meet government regulations and the
companys needs. It must produce complete and accurate information because a
defective payroll record can result to weak decision making, fines and imprisonment.
By collecting employees attendance data electronically instead of paper documents,
this can reduce time and errors by eliminating manual recording.

1.2 Background of the Study

According to Websters Third New International Dictionary, time keeping and payroll
system are only some of the requisite in the field of office management. Time keeping is
the act, function or process of keeping time while payroll is a pay masters or employers
list of those entitled to receive compensation at a given time and of the amounts due to
each the sum necessary for distribution on the payroll.

The advantages of the proposed system are the following:

Reduce errors.
Automatic Calculations.
Record-keeping.
Time Importation.

Manual processing takes a lot of time and it would be a problem if a company

has many employees. An example of a payroll system is an electronic data processing
system.
These days, big companies are using automated time keeping and payroll
system. Electronic machines can save clerical payroll costs. These machines perform
many kinds of clerical and computational operations at great speed.
Gregorio S. Miranda (1999) mentioned that, with the aid of technologies,
companies are using office automation so they could work faster and easier. One of the
automated systems being use by the companies is the use of automated time keeping
and payroll system.
Time keeping and payroll system must be designed to meet government
regulations and the companys needs. It must produce complete and accurate
information because a defective payroll record can result to weak decision making, fines

and imprisonment. By collecting employees attendance data electronically instead of

paper documents, this can reduce time and errors by eliminating manual recording.
Alvaro, Michell E. Madrigal, Mark Anthony B. and Matito Anthony I. in their study,
Solid Master Tour Employee Information and Payroll System in March 2005,
concluded that the proposed system is more efficient to use than the existing system.
They recommend that the proposed system be implemented to provide systematic,
efficient and accurate records.

1.3 Statement of the problem

General Problem
The Elars Development Incorporations recording or the attendance of the
employees consumes time because the processing of their payroll reports is done
manually.
Specific Problems:
1. How to limit the space occupied by the records of employees stored in filling
cabinets at the Accounting department?
2. How to facilitate easy access and retrieval of employees attendance records?
3. How to prevent erroneous entry of employee attendance record and data
redundancy?
4. How to improve the process of monitoring, recording of the attendance and
preparing payroll reports of the employees?

1.4 Objective of the study

General Objective
The main objective of this study is to be able to develop an Automated Time
Keeping and Payroll System for Elars Development Incorporated that will facilitate an
efficient monitoring, recording of attendance and preparation of payroll reports of the
employees.
Specific Objectives:
1. To develop a system that will limit the space occupied by the records of
employees stored in filing cabinets.
2. To develop a system the will facilitate easy access and retrieval of employees
records.
3. To develop a system that will prevent erroneous entry of employee attendance
record and data redundancy.
4. To develop a system that will improve the process of monitoring, recording of the
attendance and preparing payroll reports of the employees.

1.5 Significance of the Study

The proposed system aims to change the current Time Keeping and Payroll
System of the Elars Development Incorporated. The study will benefit the following:

To the Company
Elars Development Incorporated will be having a great benefit of using the
proposed system because they do not need to use manual transaction to tract the
records of the employees. In addition, they do not need to hire any clerks to check
their system since the proposed system will be in charge of it.
To the Employees
The proposed system will help the employees to efficiently transact their records.
It will also avoid inaccurate and the loss of employees records.

To the Future Researcher

This study will serve as a guide to the future researchers. The proposed system
is open for the progress development of the study.

1.6 Scope and Limitations

Specific Objectives:
5. To develop a system that will limit the space occupied by the records of
employees stored in filing cabinets.
6. To develop a system the will facilitate easy access and retrieval of employees
records.
7. To develop a system that will prevent erroneous entry of employee attendance
record and data redundancy.
8. To develop a system that will improve the process of monitoring, recording of the
attendance and preparing payroll reports of the employees.

SCOPE AND DELIMITATION

Scope
The proposed system, Automized Time Keeping and Payroll System for Elars
Development Incorporated, includes the collection of information of the employees
work schedule. The researchers will modify the current companys system into an
automated time keeping and payroll system with use of Microsoft Access 2010.

The employee will use a computer to login and out for time keeping of the

schedule.
The system will process the payroll report that includes the calculation of

transactions.
The system will provide a various option to print the pay slip and the payroll
summary report.

Delimitation

The system cannot be accessed online.

Other currencies cannot be computed aside from Philippine peso.
The employees salary will not be sent through ATMs or cheque.