Payroll has been designed to remove the time and effort that is normally associated with payroll and to provide a direct and seamless operation that enables the employer to handle all staff and payment processes in a simple and accurate manner. Payroll software allows organization to generate pay slips and salary register, based on the attendance of the employees taking care of leaves, overtime, allowances, loans, advance, bonus, encashment and other standard deductions. By definition, management consists of all activities undertaken to secure the accomplishment of work through the efforts of other people.
Both large and small firms require good management in order to achieve success. In the typical small business that entails group effort, the manager provides direction by activities that are described as management functions (Drucker, 1985). Information and database system projects are initiated to improve the accuracy of the processing data and ensure the procedure prescribing how to do a specific task. A computer program can maintain accurate and consistent database, hence resulting in an improved performance. The program efficiency can be increased considerably by including automatic calculations and fast data retrieval capabilities.
This will dramatically reduce the manual error and permit more study at lower cost and effort. The administration section of any organization is responsible for maintaining the pay records of all the employees. One of the main jobs of administrative section is to generate pay roll for all the employees and their payment reports. Due to the non-availability of a proper database management system all the data is handled manually. Because of large volume of payroll data and calculations, it is very difficult to handle the data manually and delayed the pay roll process.
This created an immediate need to develop a new computer based pay roll data base system to avoid the delay in generating pay bills, loan schedules, payment reports, pay slips and so on. So this new Pay roll Management System (PMS) is developed. 1. 2 STATEMENT OF THE PROBLEM Preparation of payroll manually as earlier said is a cumbersome and boring task encountered by the account personnel in the account department of any organization due to the calculations involved and its repetitive nature. After an extensive interview with an account personnel on the existing payroll system, I discovered the following problems within the system: Calculating salaries through manual operation is burdensome and stressful. • Errors such as transposition of figures in the journal • Overpayment/Underpayment of salaries • Delay in payment of staff salaries because too much time is spent in preparation of the payroll. • The use of paper to keep pay details about each employee which results in too much paper work. • There is less security in the manual system 1. 3 OBJECTIVES In the course of this project, I intend to build a system that will ensure the following benefits of a computer based payroll management system: 1.
Timekeeping o Payroll software often has an accounting feature that enables integration of the timekeeping system being used. If the employer uses a time clock, the employee’s punches or swipes can be transferred automatically into the payroll software. 2. Processing o Payroll software generally enables complete payroll processing. The employer enters the relevant employee data, including pay rate, pay frequency, tax information such as filing status and number of allowances, and deductions such as health premiums. The system calculates the wages and deductions based on the inputs.
This saves the payroll person from having to do the calculations himself. But he must verify them. The software allows him to generate reports that allow him to see exactly what employees will be paid before he prints, checks or sends the direct deposit file to the bank. If there are errors, he can make the change beforehand. 3. Record-keeping o Record-keeping is an important payroll function. This is particularly true when the employer must undergo a payroll or accounting audit. A computer based payroll system can store payroll data indefinitely.
It keeps a copy of all payroll transactions performed and they are easy to retrieve. It also stores personnel records, which saves the employer from having to search through hard copy files if she needs an employee’s personnel information. 1. 4 SIGNIFICANCE OF THE PROJECT Not so long ago, all payrolls used to be calculated manually, without any help from a computer. Professional accountants invested a lot of time and energy into keeping track of all employee data, files and information, calculating monthly salaries, hourly remunerations, bonuses, sick leaves, benefits, taxes, deductions and so on.
And they did this all by keeping numerous files filled with track records for each and every person employed. Nowadays, however, thing are far more simple than they used to be. Because technology is always dedicated to making things easier and better, quite a wide variety of computerized payroll systems is available to save us from this tedious task. Now, instead of keeping dozens of files and spending endless hours calculating, all you have to do is get a payroll software system and let it do all the nasty work. 1. 5 SCOPE OF THE PROJECT Payroll management system is the heart of any Human Resource System of an Organization.
Efficiently manage employee information with easy to use interfacing and process monthly payroll shortest time frame and keep employees up to date on his statutory obligation. The System is designed to improve on the manual method of payroll processing. It includes the features that can Add Employees record, Edit Employees information, Delete Employees record, print / Save the Pay Slip of each employee and Updating Employees information. 1. 6 LIMITATIONS OF THE PROJECT On the other hand, this study limits only to the proposed automation of a basic manual payroll management system.
A proposed system which can only be access by authorized person. It does not support network topology implementation, online program or online transaction. 1. 7 METHODOLOGY MATERIALS AND METHODS Before designing the PMS, necessary objectives of the system were established. The objectives were created after the detailed analysis of organization structure, limitations and concerns in the existing manual system. The various necessary details in the report generation also gathered from the concerned authorities. This helped us to plan an effective PMS system.
