CHAPTER I

INTRODUCTION

Today, vast innovations are experienced in terms of technology, new

inventions, discoveries and an improvement arises.

The use of computers is the best known and dominantly used

technology in different areas of society around the world. It is believed that

computers are capable of performing works that are in greater precision and

speed with less error that in manual basis. The said benefits that computers

can give serve as the main reason why people rely on technologies.

Computerization indeed covers great part in the lives of people nowadays.

Most schools, colleges and universities use computers as a way of

teaching which equipped students the knowledge to develop their own way of

making works effortless, but not West Celebes College of Technology,

Incorporated (WCCTI).The said institution still use manual transactions in

terms of preparing payroll. These factors can cause complexity of work in

terms of preparing payroll ledger and calculation of individual pay slip by the

use of record book. Which is disadvantageous to the bookkeeper and the

employees.

By these means software’s were developed to lessen the workloads of

the employees which is the main purpose of the researchers for proposing the

computerized way of preparing payroll for its proponents institution, the West

Celebes College of Technology, Inc.

1
STATEMENT OF THE PROBLEM

After the intensive interviews and observation done, the researchers

were able to identify problems based on the information’s gathered. The

following are the identified problems:

1. Repetitive use of data every payroll station which are the payroll

itself, payroll ledger and payroll slip.

2. Complexity of work in terms of preparing payroll ledger because it

was prepared manually by the use of record book.

3. Complexity of calculation of individual pay slip.

OBJECTIVES OF THE STUDY

GENERAL OBJECTIVE

The aimed of the study to develop a Computerized Payroll System for

West Celebes College of Technologies, Incorporated (WCCTI). That would

lessen the workload of the bookkeeper.

SPECIFIC OBJECTIVES

The following specific objectives were derived to support the general

objective:

1. To develop a program that could keep its data into a relational

database to have an ease and fast access on the information

needed for all required output.

2
 2. To generate reports such as individual pay slips and general

ledger.

3. To create a program that can calculate automatically the

employee’s salary and wages

SIGNIFICANCE OF THE STUDY

The study was significant most especially to the bookkeeper, who is

the one preparing the payroll. The main concept of the proposed system is to

have a program that would help lessen the workloads of the bookkeeper.

The system includes information and calculation of payroll transactions

of the employees of West Celebes College of Technology, Inc., and the

proposed system will also specify the importance of computers in making

works faster, easy and convenient. Greater time consumption could also be

minimized.

SCOPE AND DELIMITATION

The study focused on the computerization of the payroll system of

West Celebes College of Technology, Inc. It is limited to payroll transactions

of the said institution which the main focus is the net salary of the employees.

The system also provides a hard copy of the general payroll which are used

for compilation purposes. Pay slips are generated together with the general

payroll to avoid repetition of work in entering data over and over. The user

could also edit or add information and can process calculations automatically.

The systems see to it that the files are protected by the security password

3
which only the authorized person can access. This system is designed to help

the bookkeeper cope with her workloads in terms of easy computations.

The tools used for developing the project are Microsoft Visual Studio

2010 for the Integrated Development Environment (IDE) and MySQL for the

backend. The programming language used in the project is Visual Basic.Net.

In view of the proposed system, the researcher focused only on the

procedures of the above-mentioned activities.

OPERATIONAL DEFINITION OF TERMS

Computerization- the control of processes by computer

Payroll- the financial record of employees’ salaries, wages, bonuses, net pay

and deductions.

Payroll System- is a system which generate calculations of employees’

salaries, wages, bonuses, net pay and deductions.

Programming Language- is a machine readable language design to

express computation that can be performed by a machine, particularly a

computer

4
 CHAPTER II

REVIEW OF THE RELATED LITERATURE

The literature and studies cited in this chapter tackle the different

concept, understanding, and ideas, generalization or conclusions and different

development related to study of the computerized payroll system from the

past up to the present and which serves as the researchers guide in

developing the project. Those that were also included in this chapter helps in

familiarizing information that are relevant and similar to the present study.

2.1 Related Studies

2.1.1 Foreign Studies

Based on the research study entitled "PAYROLL ERP SYSTEM" of

Advantos Systems (2013), explains that it is vital that a payroll system must

allow the user to set up an employee paycheck record. It also emphasized the

use of separate salary record for each employee and the proper maintenance

of data on tax rates and exemptions.

Based on the system study entitled "INFONETICS PAYROLL

SYSTEM"(2012), emphasizes that a payroll system must be user-interactive in

all its processes (including maintenance of payroll records ad payroll reports

and checks printing). It also explains that the system must be capable of

maintaining accuracy of tax tables and deductions using a concrete formula.

5
2.1.2 Local Studies

Based on the research study entitled computerized payroll system

of Department of Health (DOH) (2007) explains that a computerized payroll

system is a window based program which is specially designed to facilitate

and simplify the monthly preparation of general payroll and related reports.

Also that is must be flexible to provide option which allows the user to hold

additional fields for other compensations and deduction which was unique to

an office the company.

Based on the undergraduate study made on Cagayan De Oro City

Hall entitled "Cagayan De Oro City Hall Computerized Payroll System" stated

that is important that the system must be easily accessible, fast-tracked and

secure.

2.2 Related Literature

2.2.1 Foreign Literature

According to the book "System Documentation" (2010), states that

“a computerized payroll system must have the ability to update and maintain

employee information and to generate required outputs including paychecks,

reports to management and to the government.”

According to a blogged article in blastasia.com (2007), says that “a

computerized payroll system is designed to help human resource professional

as well as finance and accounting personnel to manage employee

compensation, deductions, allowances, and benefits in an organization.”

6
 According to the definition of Enterprise Resource planning on

Wikipedia.com, stated that "organizations perceive ERP as a vital tool for

organizational competition, as it integrates dispersed organizational systems

and enables flawless transactions and productions". This statement serves as

basis of this proposed systems capability and flexibility to integrate to other

subsystems within the airline system.

2.2.2.1 Local Literature

According to the book of Trias(2010)entitled “What is a Payroll

System?”, emphasized the importance of accurate calculations in a successful

payroll system. It is that a payroll system is defined as “a system

programmed to calculate taxes and deductions”, which can also be internet-

based or offsite.

In the book of Musa (2009), entitled Philippine Based-Payroll

System, emphasized the major elements or variables that a Computerized

Payroll System consists. The author indicated the specific items the database

of a Philippine-Based Computerized Payroll System must have.

According to the book of Lamberte, entitled” Philippine Payment

System, stated that basic and essential parts of any payment –related system,

the flow of information providing payment instructions and the flow of funds.

He also emphasized that this flows requires an instrument to convey the

information about the transactions, this is where a computerized payment

system(in this case a Payroll System)comes in.

7
2.3 Synthesis of the Related Literature/Studies

The proponents made a relative comparison of the studies and

literature in earlier sections of this chapter. As concluded, this proposal has

based some of its concepts from such documents.

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 CHAPTER III
METHODOLOGY

Research Design

The study on the Development of Computerized Payroll System for

Business Office of West Celebes College of Technology, inc. utilized the Rapid

Application Development concept wherein it has series of steps and procedure

such as Requirements planning, User design, Construction and Cutover Phase.

Figure 1 below show the development concept model used in

developing the Computerized Library System for the Municipality of Lebak.

Figure 1. Rapid Application Development Diagram

9
Tools and Materials

The following tools for software are Microsoft Visual Basic 2010

Programming Language for program and design of the system, Photo Editing

software for editing pictures for the interface of the system and to have it

more formal and attractive look, Word Processor for the documentations and

recording of data, Web browsers and Internet Downloader were also used for

the searching and downloading in the internet for the review of related

literature and Windows 10pro x64 was the operating system used in order to

place compatibility issue between the OS and the programming language

used. Hardware requirements are 1 set of computer, printer and Wi-Fi.

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 MANUAL PAYROLL SYSTEM

RESEARCH FLOW PROCESS

Requirement Planning
 Conducted interview with clients, managers and developers to
discuss the needs, project scope and requirements of the
system that need to be developed.
 Secured approval from the administrators.
User Design
Development of Library System of Lebak Municipal
 Designed the process where clients see a working prototype and
Library
give input on new requirements to the changes id it’s needed.
 Used CASE Tools, Design Methods to create and understood
requirements. This phase repeatedly carried until the clients
agree upon a prototype.
Construction
 Developed actual system based on the design.
 Clients can interact with this phase and give input on changes
they would like to see even during the system development.
Cutover Phase
 Includes data conversion, testing and implementation of chosen
system.

COMPUTERIZED PAYROLL SYSTEM FOR BUSINESS OFFICE OF WEST

CELEBES COLLEGE OF TECHNOLOGY, INC.

Figure 2. Conceptual Framework

11
Research Flow Process

The researcher used the Rapid Application Development (RAD) in

developing the system. On this model, an incremental design process was

used with its four phases; requirement planning, user design, constructive

phase and cutover phase.

A. Requirement Planning

The researchers sought permission first to the School President prior to

the conduct of the study. Upon the approval of the request, an interview to

the in-charge of manual payroll system was conducted. Information gathered

includes, problem encountered by the in-charge in terms repetitive use of data

every payroll station which are the payroll itself, payroll ledger and payroll slip,

complexity of work in terms of preparing payroll ledger because it was prepared

manually by the use of record book and complexity of calculation of individual pay

slip.

B .User Design

This phase provides a comprehensive approach to the design of the

system, ensuring the design to meet all user and requirements. The Design

was completed by creating context diagram which defined the interaction

between the processes and data.

The context diagram also shows different entities that where included in

the system as well its individual transaction. On the other hand, Entity

Relationship Diagram was provides information of the different Fields that are

12
included in every entity as well as the relationship of every entity that were

included in the system,. Flow Chart represents the flow of the system from

the start to the end of the program capturing the dynamic picture of the

system,. Use Case Diagram represents user's interaction with the system that

shows the relationship between the user and the different use cases in which

the user is involved,. The researchers prepared a Gantt chart to determine

the requirement planning, User Design, Contraction and Cutover, In order to

determine the cost to start a budgetary was prepared,

C. Construction

The system was developed using Microsoft Visual Basic 2010

programming language. Figure 3 below shows the Microsoft visual studio

2010 environment where different transaction of the system was developed.

It is where the researcher designed and coded the developed computerized

payroll system for the business office of West Celebes College of

Technologies, Inc.

Figure 3. Visual Studio Environment

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 Microsoft SQL Server 2008 R2 was also utilized in developing the

system. It is where all the data inputted in the system were stored.

Figure 4. Microsoft SQL Server 2008 R2

Figure 5 below shows the Visual Basic 2008 Environment where the

system was designed and coded. It consists of tools, objects and other

properties that were used for the program. It was also used in creating the

different forms of the system such as employee registration, deduction

registration, user registration, absences registration. Other Data included in

the designing of the system were based on the desired output of the business

office personnel.

Figure 5. Visual Basic Windows Form

Figure 6 below shows the code window of the programming language

that was utilized. The codes were encoded in order to make the system

14
functional and were able to attain its desired output. All transaction that was

included in the system as well as data elements used was coded.

Figure 6. Visual Basic Code Window

D. Cutover Phase

Several test was conducted in order to ensure that the system function

according to the desired output. Errors occurred was automatically fixed.

During this phase data conversion and implementation of the system were

undertaken.

Evaluation Process

An evaluation was conducted in order to determine the Functionality,

Design, Content and Security of the developed system. There were 10

respondents that served as evaluator of the system. It is composed of

Bachelor of Science in Information System instructor and Information

Technology support staff.

Liker 5-point rating scale was used to determine the response of the

ten (10) respondents during the conduct of evaluation. The rating scale to

use during the conduct of evaluation can be seen on the next page.

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Table 1.Rating Scale

Numerical Mean Descriptive Interpretation

Description Range Meaning

5 4.20 – 5.00 Excellent Expectations were fully

met and complied
perfectly
4 3.40 – 4.19 Very Expectations were met
Satisfactory with minor deficiency

3 2.60 – 3.39 Satisfactory Expectations were

partially met with visibility
of errors and deficiencies.
2 1.80 – 2.59 Needs Expectations were fairly
Improvement met with various
deficiencies.
1 1.00 – 1.79 Poor Expectations were partly
not met at all.

The weighted mean was computed after the conduct of evaluation to

weigh the response of the respondents. Below is the formula to be used in

computing the weighted mean.

Formula:

Where:

X = Mean

Σx = Sum of all data values

n = is the number of data items in sample

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 CHAPTER IV

PRESENTATION, ANALYSIS AND INTERPRETATION OF DATA

The study was conducted to determine the operational, technical

reliability of the Payroll System of West Celebes College of Technology,

Incorporated in terms of using payroll data throughout the process of

generating the required output.

Respondent of the Study

The respondent of the study is Mrs. Angelina M. Gindap, the

bookkeeper of West Celebes College of Technology, Incorporated. She

prepared payroll manually using a record book.

Questionnaire answered by the Respondent (Post- Implementation)

Table I: Result of the post- implementation questionnaire

answered by the bookkeeper of West Celebes College of Technology, Inc.

Respondent- Bookkeeper Yes No

1. Does the system did minimize redundancy of data?

2. Does the system makes it easy for you to perform

calculations?

3. Does the system provides reliability in doing the payroll?

4. Does the system helps to lessen your workloads in doing

payroll transactions?

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 The table above shows the result of data gathered by the

researcher from the bookkeeper of West Celebes College of Technology,

Incorporated. The “Yes” answer means favorable and “No” answer means not

favorable.

In question # 1, the bookkeeper answered “Yes” which means

that the computerized payroll system of West Celebes College of Technology,

Incorporated did minimized the redundancy of using data in every payroll

transactions which are the general payroll and the pay slip.

Question # 2, is answered “Yes” by the respondent which means

that the system helped the bookkeeper in performing calculations quick and

easy.

Question # 3, is answered “Yes” by the respondent which means

is reliable in doing payroll transactions which are general payroll and the pay

slip.

Question # 4, is answered “Yes” by the respondent which means

the system helped lessen the workloads of the bookkeeper in doing the

payroll transactions.

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Feasibility of the Study

Operational Feasibility

The operational aspects of the proposed system must be

considered. It determines the possibility of the user to adopt the proposed

system and specifies the importance of computerization of doing payroll

transactions in minimizing the workloads of the bookkeeper and to minimize

also the time consumption in terms of calculation process.

The researchers determine that the proposed system provides

reliability in doing the payroll. The primary user of the Computerized Payroll

System of West Celebes College of Technology, Inc., is the bookkeeper. She

is responsible in making the payroll of the said institution.

Technical Feasibility

The researchers have determined the availability of technology

needed to implement the system. The bookkeeper has a computer unit which

is suitable to implement the system.

Hardware Specification

The following are the minimum requirements to implement the

system:

1. Hard Disk Drive

-500 GB

2. Central Processing Unit

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 -Intel(R) Core(TM) i3-6006U CPU @ 2.00GHz, 1992 Mhz, 2

Core(s))

-2GB of RAM

3. Input/ Output Devices

- Keyboard

- Mouse

- Monitor

- Printer

Economic Feasibility

The equipment’s are already available and the cost for maintaining

the functionality of the equipment’s is considered assuming. The researchers

can conclude that the system is economically feasible.

Cost Estimation of the Proposed System

1. Estimated System Development Cost

a. Programmer Cost………………………………………..10,000.00

b. Miscellaneous Fees……………………………………..1,000.00

c. Bond Paper……………………………………………….1,000.00

d. Ink Refilled (Black and Colored)………………………..1,200.00

Total Cost of the System………………………………………………..13,200.00

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SCREEN DESIGNS (COMPUTERIZED PAYROLL SYSTEM)

Data Entry Screen

Figure 1.0 User Login

This form shows the two way authentication process of the software; the user
can choose between admin user and normal user. Admin users have all the
privileges to control all the capability of the software while normal users have
certain restrictions in accessing the software.

Figure 2.0 Admin User Login and Normal User Login

This figure shows the Login Form of the system. The user can input his/her
username and password on the textbox above.

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Figure 3.0 Main Form

This is the main form of the Computerized Payroll System, Wherein you can
navigate to Register New Employee, To Modify Pay-Slip, Manage Staff and
you can switch user on this form.

Figure 4.0 Employee Registration Form

On this form the user can add new employee’s information such as name,
contact number, email, blood type, department, designation, position, and the
basic salary of the employee.

22
Figure 5.0 Pay Slip Generation Form

In this figure the user can input employees information needed to make a pay
slip.

Figure 6.0 Sample Pay Slip Generated by the Payroll System.

23
Figure 7.0 General Payroll Form

In this figure the user can generate the general payroll of all employees.

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 CHAPTER V

SUMMARY CONCLUSIONS AND RECOMMENDATIONS

This chapter presents the summary of the system, the formulated conclusions

and the researcher’s recommendations.

Summary

The main objective of this study is to solve the problems identified

in the manual system which was discussed in Chapter I. In order to solve the

identified problems, The researchers developed a Computerized Payroll

System of West Celebes College of Technology, Inc. to achieved its goal in

minimizing the workload of the bookkeeper, Mrs. Angelina M. Gindap, who is

the respondent of the study and the source of information that was needed to

finished the study. The system is significant to the bookkeeper.

The researchers was able to identify problems in the current

system of preparing payroll because of the information gathered from the

bookkeeper as the result of the interviews, observation and investigation that

was done.

The list of identified problems:

1. Repetitive use of data every payroll station which are the payroll

itself, payroll ledger and payroll slip.

2. Complexity of work in terms of preparing payroll ledger because it

was prepared manually by the use of record book.

3. Complexity of calculation of individual pay slip.

25
 These problems were solved by the researchers in the

Computerized Payroll System of West Celebes College of

Technology, Inc.

Findings

Based on the tough investigation and observation, the researcher

was able to identify problems which already mentioned in chapter I. The said

problems were solved by the Computerized Payroll System.

The findings identified by the researchers are:

1. The Computerized Payroll System is useful in minimizing time

consumption in preparing the general payroll and pay slip.

2. The system is reliable in making the workloads of the bookkeeper easy

and convenient in terms of doing the general payroll and the pay slip.

3. The Computerized System is helpful in performing calculations.

Conclusions

As the result of all the gathered information and tough investigation,

the researcher was able to formulate conclusions based on the findings that

were derived.

1. The system helps minimized time consumption in doing the payroll and

pay slip through automatic calculations.

26
 2. The system helps lessen the workload of the bookkeeper through

automatic generation of reports.

3. The system helps in utilizing the use of data in every payroll station

which are the general payroll and payroll ledger only because it already

contain the required information and reports for compilation purposes.

Recommendations

After the further review of the findings and analysis of data, a

recommendation is presented.

The researchers recommendation that the bookkeeper would make

use of the Computerized Payroll System by implementing it as soon as

possible to lessen the workload of the bookkeeper and also to minimized time

consumption for faster and easier doing of specified transactions.

27
 BIBLIOGRAPHY

BOOKS

 Gordon, David T. (2001). The Digital Classroom: How

Technology is Changing the Way We teach and Learn.

Cambridge, MA 02138:

Harvard Education Center.

 Beekman, Brent, Rathswohl (1997). Computer Influence

Exploring Tomorrow’s Technology. Canada: Addison Wesley

Longman Inc.

 R. Thomas Wright (1990). Manufacturing Systems. The

Goodheart Willcox Company, Inc.

INTERNET

 Machado, F. (1997). Technology Information; St. Michael’s

Hospital. Health Management Technology.

 https://www.academia.edu/13793760/Chapter_2_Related_Lite

rature_and_Studies_2.1_Foreign_Literature_2.1.1_Records_Ma

nagement

 Design and Implementation of Payroll Management System

Source: https://www.projecttopics.org/design-implementation-
payroll-management-system.html

28
APPENDICES

29
 APPENDIX A

(LETTER OF PERMISSION)

30
 WEST CELEBES COLLEGE OF TECHNOLOGY, INC.
Aurelio, Freires Sr., Lebak Sultan Kudarat

Mr. Jimmy J. Gindap

President
West Celebes College of Technology, Inc.
Aurelio Freires Sr., Lebak, Sultan Kudarat

Dear Sir:

Greetings!

We, Jessa A. Baba and Regine D. Soriano, a Bachelor of Science in

Information System(BSIS) Students of West Celebes College of Technology,
Inc.(WCCTI), would like to ask permission from your office to conduct our
thesis/research entitled “Computerized Payroll System for Business
Office of West Celebes College of Technology, Inc.”. This study aims to
create a computerized payroll system that will compute all payroll transactions
automatically.

We are hoping for your positive response upon this request.

Thank you very much.

Respectfully yours,

Jessa A. Baba and Regine D. Soriano

Researchers

Noted by:

Davy Johns M. Gindap, MIT

Program Head

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 APPENDIX B
(PROPOSED SYTEM PAYSLIP)

32
 APPENDIX C

(QUESTIONNAIRE)

Name: ___________________________ Date: _______________

Address: _________________________

YES NO

1. Does the system did minimize the redundancy of data? [] []

2. Does the system makes it easy for you [] []

to perform calculations?

3. Does the system provides reliability in [] []

4. Does the system helps lessen your workloads [] []

In doing payroll transactions?

33
 APPENDIX D

(PROPOSED SYSTEM GENERAL PAYROLL REPORT)

34
 APPENDIX E

(PROPOSED SYSTEM CONTEXT DIAGRAM)

35
 CONTEXT DATA FLOW DIAGRAM

Pay Slip and General Payroll

0 Retrieved Employee
Information

Bookkeeper Computerized Payroll System for Business

Office of West Celebes College of
Retrieve Employee Employees Information
Technology, Inc.
Information Database

Employee Information

36
 APPENDIX F

(PROPOSED SYSTEM TOP LEVEL 0 DIAGRAM)

TOP LEVEL 0 DIAGRAM

37
 Employees Information

1.0 Encoded Employees

Bookkeeper Employee Information
Information

Verified Employees Encode Employee

Information

2.0 Search
Employee Information

Create Payroll Employee Profile info

Transaction Process

Pay Slip and General

Payroll

3.0 Retrieve Employee

Payroll Transaction

Retrieved
Generate General Payroll Payroll Transaction
Payroll Transaction
And Pay Slip
Process

38
 APPENDIX G

(GANTT CHART)

39
 Jan 2019 Feb 2019 Mar 2019 Apr 2019
ID Task Name Start Finish Duration
1/6 1/13 1/20 1/27 2/3 2/10 2/17 2/24 3/3 3/10 3/17 3/24 3/31 4/7 4/14

1 Observations and Data Gathering 1/8/2019 1/30/2019 17d

2 Data Analysis 1/30/2019 2/28/2019 22d

3 System Design 2/28/2019 3/29/2019 22d

4 System Implementation 3/29/2019 4/29/2019 22d

40