EMPLOYEE MANAGEMENT SYSTEM

A Project Presented by

BSIT – COMPTECH STUDENT OF

CEBU TECHNOLOGICAL UNIVERSITY – MOALBOAL CAMPUS

MOALBOAL, CEBU

In Partial Fulfillment of the requirements of the

BACHELOR OF INDUSTRIAL TECHNOLOGY

MAJOR IN COMPUTER TECHNOLOGY

FRANCISCO R. RABOR JR.

APRIL 2019
 ACKNOWLEDGEMENT

I am greatly indebted to the following for their contribution to my work:

The Almighty God, who gave me the insight and perseverance to accomplish this work. My

parents for all the support. My Instructor, Mr. MARNELL ESCABAS who’s sounding advice

helped me steer this project in the right direction, a work I will forever cherish.

Members of staff at the Computer Studies department for the solid knowledge-base that enabled

me carryout the research.

Finally, my classmates who’s technical and moral support throughout my stay at the Computer

Studies department was of great help.

Thank You and God bless!

ABSTRACT

Employees are the backbone of any company therefore their management plays a major

role in deciding the success of an organization [1]. Employees Management System makes it easy

for the employer to keep track of all records. This software allows the administrator to edit

employees, add new employees, transfer/promote/terminate employees. Each employee in the

database is associated with a position can be added and edited when need arises. Employees can

be transferred between positions easily without having to retype back their information in the

database. You can check to see if there are duplicate positions/employees in the database. Most of

all, the employer can assign tasks to employees and assess their progress in order to keep track of

employee performance. A flexible and easy to use Employee Management software solution for

small and medium sized companies provides modules for personnel information management

thereby organization and companies are able to manage the crucial organization asset – people [2].

The combination of these modules into one application assures the perfect platform for re-

engineering and aligning Human Resource processes along with the organizational goals. This

system brings about an easy way of maintaining the details of employees working in any

organization. It is simple to understand and can be used by anyone who is not even familiar with

simple employees system. It is user friendly and just asks the user to follow step by step operations

by giving easy to follow options. It is fast and can perform many operations for a company. The

goal of this project is to design and develop an employee management system to fill existing gaps

in the electronic management of employees.

TABLE OF CONTENTS
TITLE PAGE
ACKNOWLEDGEMENT
ABSTRACT
TABLE OF CONTENTS
LIST OF FIGURES
LIST OF APPENDICES

CHAPTER I PAGE
THE PROBLEM
Introduction
Rationale
Theoretical Background
Statement of Purpose
Objectives of the projects
Significance of the Study
Definition of Terms

CHAPTER II: REVIEW OF RELATED LITERATURE

CHAPTER III: RESEARCH METHODOLOGY AND PROCESS
Method
Flow of the Project
Environment

CHAPTER IV: Summary, Findings, and Recommendation

References
Curriculum Vitae
LIST OF TABLES AND FIGURES
 Chapter 1

THE PROBLEM

INTRODUCTION

The entire system of employee management system(EMS) is designed to remove problem

in existing system and the organization will meet its specific aims. One of the most important aims

from the system to provide detail profile of each employee. As a result, the system is most

important for improving other system of organization like human resources management. The role

of EMS is to centralize the repository of staff data including recruitment, attendance and salary.

An effective Employee Management System helps to generate accurate and timely. EMS keeps

the record of employee joining date, leaving date, assets provide. It manages salary of employee

according to the attendance. It also focuses on the capabilities and facilities provided by the

company.

RATIONALE

Computer has change the way of the people to work. In the field of computer and

technology, there is always an option to automate things like payroll system. With the advance

technology, payroll system provides an efficient way of calculating pays than a manual system.

By this proposed system simplifies and updates employee information, generate reports

and minimize manual efforts. The simplicity and effectiveness of payroll system provide great

advantages to organizations. This system allows easy management of employees’ salaries, wages,

taxes and other deductions. Calculating accurately builds trust among employees, easy to use. This
payroll system is quite helpful in providing accurate calculations. Also provides complete solutions

of payroll needs.

Theoretical Background

One of the most important tasks in running a small business is completing payroll. Payroll

affects every aspects of a business from the morale employees to the financial stability of the

company.

G-Team (2015) states that payroll is an integral part of all organizations. The payroll

department is not only responsible for employees’ salary compensation, but it also plays a vital

role in protecting the company’s reputation by ensuring compliance with various legislations. A

critical aspect of payroll is it impact on the morale of the employees. Employees need to feel

assured that they can be paid on a consistent and timely basis.

According to Charles Read (2017) payroll system for a company covers many things. Let’s

assume a company with hourly and salary people. Some commissions but no piece work.

Collection of time accurate and timely for both, hours for hourly and days worked for salary.

Collection of commission and information including back charges and calculation of commission

amounts by dollar and date earned and if necessary type. Collecting, maintaining and updating

rates of pay to apply to hours and days worked. Calculating gross pay for each employee. Don’t

forget overtime calculations which can vary by State and municipality. Collecting, maintaining,

updating, verifying fringe benefits.

Other potential deductions to numerous to contemplate (a) Calculate all payroll related taxes.

Company paid and those withheld from the employee’s pay. (b) Create payments for employees.

This can be cash, check, direct deposits, debit card deposits and in certain unusual cases other
mechanisms. (c) Create and provide for payment of all employment taxes. Create and file all

required forms on a timely basis. Crate and make all deposits on a timely basis. (d) Provide all the

dollar information to accounting for proper recording on the company financials on a timely basis.

This is a rough outline leaving out numerous things that complicate the system to the extreme at

times. Sometimes certain duties are assumed by HR or Accounting Departments but they are still

functions of the Payroll System.

Million Business Software (2019) states that payroll software enables calculating timely

salaries and keeps track of monthly, quarterly, and annual pay cheques. Salary is paid in various

forms that include cash, cheques, or direct transfer. A great payroll software allows multiple

payment option, which makes payroll processing efficient. It enables paying salary in their

preferred mode of payment. Payroll software computes employee salaries every month. It can

generate different kinds of reports such as monthly report, tax report and overtime report. Income

taxes are needed to be paid by the employee based on the employee salary. Manual calculation is

prone to errors therefore, it is critical to use payroll system for efficient and accurate payroll

processing as accurate calculation builds trust among employees.

Million Business Software (2017) Managing accounts and maintaining proper records of all

employees’ time and attendance to prepare payroll manually is a complex and time consuming

process. Payroll system developed for small business has made the tasks easier. Now, most of the

companies prefer to use payroll software for their small business to calculate employees’ salaries

accurately and quickly. A payroll system is an important software program that calculates payroll

accurately in compliance with taxing authority. Payroll software developed for small businesses

in Malaysia are simple to use and affordable. These systems can calculate taxes and deductions

according to the Malaysian tax system.

 According to Jennifer F. Bender, Every small business owner performs more than one role

for his company. One of the most important task in running a small business is completing payroll.

Employees need to be able rely on being paid on a consistent basis without delays. Payroll affects

every aspect of a small business from the morale employees to the financial stability of the

company.
THEORITICAL FRAMEWORK OF THE STUDY

The proposed system is mainly involved in calculations, computing and summarization of

all financial records and of salaries of the company’s manpower.

SALARY
COMPUTATION

PAYSLIP GENERATION
PAYROLL REPORT

PAYROLL
SYSTEM

ATTENDANCE FINANCIAL
RECORD REPORTS

DEDUCTION AND
TAXATION CALCULATIONS

Figure 1.
FLOWCHART DIAGRAM OF THE STUDY
Statement of Purpose

The main purpose of this system is to handle multi-company transactions because people

nowadays are highly generated and adapted by technology. Now, most of the companies prefer to

use payroll software for their small business to calculate employees’ salaries accurately and

quickly. Generates and distributes salary slips in just a few clicks. And deposit withheld taxes in

timely manner and reduces compliance risks.

Objectives of the Project

The proposed system is intended to provide a user – friendly system that will compute

accurately the salary of the local government employees. It also designed to secure payroll

information by the means of database and security module. To provide a payroll system that will

rapidly processed payroll computation. To designed a one click management of salary and

employees records. To create a payroll system with varied level access control. (weebly.com)

Significance of the Project

This project is to have a better service for the employees and less error of their payroll

system, the employer or the business companies and other person who are involved in this system

will also benefits from this proposed system

To the management will benefit from the system, this will help them to have better service, to

update their record easily and this can also keep track of the performance of their employees.

To the accountant will able to manage employee services and help them to have a faster way of

retrieving and updating of employees’ records.

To the employee will benefit in the system. They will find easier to transact about their records

since searching in the system is faster than tracking in the record book or log book.

To the manager or the department head will benefit from this system because this will make

checking of employees’ payroll and even attained to their needs in case of problems.

To the students, it adds their information about the education and information process of this

system and how important it is to their study and to their lives when they have a job.

To the future researcher, it adds knowledge and interest to have a better idea of this system and

gives them information and references to the latest studies aligned to the present information.
DEFINITION OF TERMS

Payroll – is the sum of all financial records of salaries, wages, bonuses and deductions. In

accounting, payroll refers to the amount paid to employees for services they provided during a

certain period of time

System – is a set of interacting or interdependent entities forming an integrated whole.

Reports – this refers to give an official account or statement of as a treasurer reports on the receipt

and expenditures.

Employee – one who engage to perform an activity in a desirable course of business being hired

of the employer under the terms of employment.

Accountant – one who keep the financial records of the business companies.

Pay Slip – refers to a detailed breakdown on how much an employee is paid during a specific

period.

Salary – refers to a wages received on a regular basis, usually weekly, bi – weekly or monthly.

Deductions – refers to the business expenses or losses which are legally permitted to subtract from

the gross revenue of a firm in computing its taxable income.

 CHAPTER II

REVIEW OF RELATED LITERATURE AND STUDIES

Related Literature

The present study bears some relationship to the previous studies conducted. These studies

are given as follows:

According to Ramon Floran in the Philippine Daily Inquirer, page 14 October 2005 wrote

on his article “The Computer Edge of the New Employment and Opportunities. He stated that

computer gives different feeling about what is happening in the company. Business will be highly

competitive and innovative because the computer provides instant information.

John Aquilan made a comparable thesis entitled “Automation of time attendance System”

in 2004. It stated that the automation of time attendance records, time in and time out of every

employee using a bar code system. It tends to eliminate the manual recording system of time and

attendance and also include salary computation of each employee based on the time and attendance

reports.

Related Study

A group of computer engineers in Rebisco Corporation, August 2007 proposed a thesis

report entitled “Computerized Daily Time Record System” for what is the same Innodata Corps is

implementing right now a computerized daily time as an alternative for Bundy clock. The means

of getting inside the company premises is by swiping cards into a machine that reads every record

of each employee then monitor and display the time a particular employee logs in and out.
 According to Olivar (2010), “Payroll System is a heart of Human Resource System of an

Organization”. The solution has to take care in calculation of the salary as per rules of the

Company, Income Tax calculations and various deductions to be done from the salary based on

the daily time record using the “Biometric Attendance Record System” including statutory

deductions like income tax and provident fund deductions. Another study, the main focus of the

system should handle employee’s records such as Employee List, Add New Employee, Edit New

Employee, Attendance, Bonus and Pay slip for the for the administrator.

By these studies, the proponent will receive experience specifically in high – technology

materials synthesis, and characterization. This experience will include the operation and design of

the equipment used to make integrated system.

History

Primarily, payroll can trace its roots back to bookkeeping in most industrialized nations. In

the first instance bookkeeping was a way for merchants to keep track of their sales and outgoings,

but over time as trade and business has developed on a large scale it has developed into something

much more complex. These days companies need to keep track of their employees pay as well as

their own buying and selling, and with tax and legislation ever changing it the need for accurate

and efficient payroll solutions has become paramount.

The Greek system is the first known system which bears some resemblance to the HR and

payroll systems we use today. The Athenians developed a system for managing pay in which public

servants, treasurers and clerks kept records by chiseling payment details and financial records into

stone! Payroll as we know it today largely came about during the industrial revolution of the 19th
century. With the onset of mass employment and production in the country the need arose to keep

accurate records of workers and their pay. Without financial documentation it would have been

impossible to keep up with outgoings. According to the dictionary this is when the term “payroll”

was first used. Another step towards the payroll that we use is the development of the first

computerized payroll system. This early IT based payroll system began to take shape in the 1950′s

when the first computerized LEO (Lyons Electronic Office) was developed in order to handle

clerical tasks. Whilst it was first used for valuations, it was soon used to manage other clerical

tasks including payroll services.

These days companies no longer need to manage their own payroll as there are companies

that specialize in payroll management who can take care of it for you. In today’s workplace any

business which employs staff needs a fluent and effective payroll system. It enables you to comply

with legal obligations and to ensure that you are deducting the right amount of income tax and

national insurance contributions. It’s important for companies to keep on top of this as failure to

comply can land businesses in trouble – and end up costing them a lot of money, and the larger

your company is the more difficult it will be to manage your payroll. Payroll has moved on a lot

since the industrial period.

 CHAPTER III

PROJECT METHODOLOGY AND PROCESS

This chapter discuss the research methods available for the study and what is applicable

for which is directed to the payroll system. Likewise, this chapter presents various procedure and

strategies that will be used in the study in order to identify varied information that will help to

supplicate payroll system.

Method

Descriptive method is being used in making his project. It is where the person doing this

project describes and presents it in a descriptive manner.

Flow of the Project

The flow of the study made use of the input, process, and output.

Input Process Output

Understanding
Process
 Codes and Proposed
components  Understandi
Payroll
ng the
 Procedure Concept of System
the Task
 Specific
Purpose or  Knowledge
Objective and Skills
required
 Preparing
 Skills related
to the Task

 Analyze

Figure 2. Flow of the Project

Research Environment

This study implemented at AB 102 located at Cebu Technological University-Moalboal

Campus. It was approximately 89 kilometers away from the City of Cebu. It has neighboring town

of Alcantara and Badian.

 CHAPTER IV

SUMMARY, FINDINGS, CONCLUSIONS AND RECOMMENDATION

This section presented the summary of findings, conclusions and recommendations.

SUMMARY

The study deals with the proposed payroll system which main purpose is to calculate

employees’ salaries accurately and quickly. Generates and distributes salary slips in just a few

clicks. And deposit withheld taxes in timely manner and reduces compliance risks. And descriptive

method was used to attain the purpose of this project.

CONCLUSION

This chapter dealt with the user’s needs and expectation for the new system. The next

chapter deals with requirements analysis that is requirements needed to solved the problem being

faced by the workshop in Rwanda. An employee management system will be the best solution for

the problem. It will provide easy online access to the employees that are currently at work and

what are working on. Also easy to allocate jobs to the employee that are done with what they

doing.

RECOMMENDATION

This project which is the “Payroll System” is highly recommended that it can be

implemented to any other possible branches or any business companies, also with its dependable

performance and easy to use procedures. This project system can be a great help for companies or

organizations concerning their payroll system.

CHAPTER

OUTPUT OF THE STUDY

 REFERRENCES

Charles Read (November 3, 2017). What are some purposes of payroll system?. Retrieved from
www.qoura.com

CPS – HR and Payroll Solution (October 7, 2013). History of Payroll. Retrieved from
www.payroll-solution.co.uk

G – Team (December 8, 2015). The Importance of Payroll in an Organization. Retrieved from

www.gpayrollsystem/blog/payroll/the-importance-of-payroll-in-an-organization.html

Jennifer F. Bender, The Importance of Payroll, n.d Retrieved from

http://smallbusiness.chron.com/importance-payroll-23271.html

John Aquilan (2004). Automation Of The Time Attendance System.

Million Business Software (May 26, 2017). What are the importance of Payroll System in an
organization? Retrieved from www.million.my

Million Business Software (April 4, 2019). What are the features of the great payroll Software?
Retrieved from www.million.my

Objectives of Payroll System. Retrieved from: http://payrollsystem-

lgu.weebly.com/objectives.html

Olivar (2010). Payroll System is a heart of Human Resources System of Organization

Rebisco Corporation (August 2007). Computerized Daily Time Record

Roman Floran (October 2005). The Computer Edge Of The New Employment And Opportunities.
pp. 14. Retrieved from http://phillipine-daily-inquirer.org
CURRICULUM VITAE

Personal Data

Name : Francisco R. Rabor Jr.

Address : Tomonoy Moalboal, Cebu

Contact No. : 09496128263

Date of Birth: Nov 2, 1998

Place of Birth: Tomonoy Moalboal, Cebu

Age : 20

Nationality : Filipino

Religion : Roman Catholic

Hobby : Playing basketball

Educational Background

Elementary: Sulop Central Elementary School

Sulop Davao Del Sur

High School: Badian National High School

Pob, Badian Cebu

College : Cebu Technological University – Moalboal Campus

Poblacion West, Moalboal, Cebu