Management System with DTR and Payroll 1

Chapter 1

THE PROBLEM AND ITS SETTINGS

Introduction

Attendance plays an important role in every organization. It helps determine whether

or not a business can be successful in the future. And through the attendance monitoring,

the employees will also help train themselves to become more punctual, thus resulting to

a day-to-day task being fulfilled on time. Attendance will also serve as a basis in deciding

which employees are most likely to stay in the company for a longer time.

Other than being a basis on determining the possible effects for the company and its

employees, attendance also serves as an aspect that can affect the relationship of its

employees. Some employee might fabricate their attendance records which would be

unfair to others because the ones who fabricated their records would earn more or just the

same as the others without rendering the same time or amount of work that should’ve

been done. This kind of situation greatly affects the work environment and can change

the mood or work attitude of anyone.

Also, the attendance of the employees will serve as a basis on computing the

employee's’ pay slip more accurately. Thus with a proper attendance monitoring, the

generation of every employee's’ salary would be made in an accurate way.

Management System with DTR and Payroll 2

Background of the Study

In this day and time, using the old ways of monitoring records, specifically using

time-card, might leave a company at a disadvantage, thus affecting the business

negatively. As technology continues to progress and innovate, new methods continue to

pop up everywhere from security systems down to the payroll every single thing focuses

on the advancement in improving the current system an organization has.

In the study of Consumo(2009), she developed a system to monitor the attendance of

the employee and to compute the payroll automatically. In her study she used password

to login in the system and get the attendance data but she had a problem in getting the

accurate time upon logging in and logging out of the employee.

With the proposed system, it will help utilize a precise, accurate, and error-free

attendance and payroll records of the employees. Since it would not be practical for an

organization to use old ways of monitoring an employee’s attendance, such as time cards

and log books, and do the pay slips manually, for it would not be reliable and can be

fabricated. With the use of the Facial Recognition functionality of the system, the

company would be able prevent record fabrication, thus providing a more reliable

monitoring for the business’ attendance. Through this system, it would be aimed to solve

such problems integrating the words “precise, accurate and error-free” within the system.
Management System with DTR and Payroll 3

Objectives of the Study

The General Objective of this Study is to build a Daily Time-Recording and Payroll

System for Government Institutions

Specifically, it aims to:

1. Design a system with the following features:

a. Monitor Attendance of employees using Facial Recognition

b. Checks for Leaves, Absences

c. Calculates Deductions (SSS, PhilHealth, Pag-ibig, etc.), Gross Income,

Total Salary, and etc.

d. Generate Pay slip

e. Notify Employees of their salary via SMS

f. Create a forum or board for Announcements and Event Scheduling

2. Create the system using:

a. Sublime Text 3
Management System with DTR and Payroll 4

b. Adobe Photoshop CC

c. XAMPP

d. Visual Studio 2015

3. To test and improve the system’s functionality, efficiency, maintainability

and portability.

4. Determine acceptability level of the system using ISO 9126.

Scope and Limitation of the Study

The study focuses on designing, creating, testing and improving of the Daily-Time

Recording and Payroll System. The users can access the system through their laptop,

desktop and cellular phones, it will be responsive on any medium. The access level of

each feature/sub-system differs:

The Attendance and Payroll System is WAN/LAN Based and can only be accessed if

the user within the vicinity of the network in the organization.

The Forum part of the System can be accessed even if the user is outside the network

of the organization, he/she just need to have an internet connection.

All employees will have their own account with an access level. This system centers

on the advancement of the organization through the use of modern technology. Also a

camera is attached as the device to capture image and identify the employee. The

proposed system as much as possible suggest to use a high-definition camera so that there
Management System with DTR and Payroll 5

will be no inconsistency and poor lightning background problems which can result into

an inaccurate result of comparing the face templates.

Significance of the Study

The system’s purpose is for the benefit of the organization as it will help improve the

punctuality of employee, speed-up work and will help produce a precise computed

employee salary. Another aspect that the organization will benefit from is that the reports

of the employees’ attendance and pay slip won’t be fabricated. The process in getting

each employees’ salaries would then be more reliable. In this manner, every result will be

produced in an easier and faster way, thus, will increase the productivity in the

organization.

Chapter 2

CONCEPTUAL FRAMEWORK

Review of Related Literature

Computers nowadays are widely used in every transaction processes automation

makes it easy for a company to do their internal and external transactions. Payroll and

Attendance monitoring system is one of the many transactions that are being worked on

computer. The proponents worked on a custom-made payroll and attendance system done

for the specific need of the company. The proponents searched on related literature that
Management System with DTR and Payroll 6

would aid in developing an effective payroll system one of the research processes

followed. The related literatures are as follows:

A. Foreign Literature

According to Thomas Primer on his article “Automated Computerized

Process”, in Reader's Digest Magazine, May 2005, Page 45, for many businesses

automating collection of employee attendance data when employees begin their

shifts is still a manual process. Even business that has automated or computerized

processes such as scheduling, inventory, purchasing, general ledger and payroll

processing still use manual method such as time card sheets to collect time and

attendance data.

NOVAtime a group system developer, on last May 2007, the system that will

give management power to not only utilize tools we have available to us today,

but will continue to grow and evolve, giving it the capability to incorporate and

utilize the tools the new millennium promises to bring us. NOVAtime has a

system designed for growth while maintaining the maximum in flexibility. Where

the sophistication lies within the programmed mechanism of the system, allowing

for a quick and simple implementation and employee training cycle, after all the

true test of a system is not only in the production and wealth of reporting, but in

the simplicity and ease of its operation in conjunction with a simple and

accommodating implementation program

Management System with DTR and Payroll 7

Many facial biometrics-based systems have been deployed over recent years

but with varying success – variability of lighting conditions often leads to

unreliable performance. Dr Thomas Heseltine, a biometrics consultant for Aurora

Computer Services and Dr Nick Whitehead, Airport Developments Programme

Manager at Atkins, describe the technology behind a new approach that resolves

these problems using infra-red instead of visible light images.

Post-September 11, myriad US airports installed biometric systems in a bid to

protect against and reassure travelers and employees about potential terrorist

threats. But the facial recognition systems trialed at numerous airports, including

Logan airport in Boston, Oakland International Airport in California and TF

Green Airport in Providence, were not a success. Failure to identify a high

percentage of passengers raised question marks over the validity of the

technology.

Nearly a decade later, security systems developed by Atkins are being rolled

out that promise to improve on this reputation. These systems use facial

recognition software developed by Aurora Computer Services. But rather than

performing facial recognition using visible light images, as had taken place in

previous systems, these systems use infrared images. In recent trials conducted

with thousands of people, no-one was falsely rejected, that is, incorrectly turned

away by the system, nor were there any false acceptance events where the wrong

person was allowed to proceed. This was achieved by improved system design
Management System with DTR and Payroll 8

and the advances made by the development of infra-red facial recognition. So

what exactly is the technology and why choose infra-red?

Biometrics are the digital analysis – using cameras or scanners – of biological

characteristics to match profiles to databases of people. Facial recognition as well

as fingerprint readers, retina and iris scanners are all examples of reliable

biometric technologies. However, many in the biometrics industry believe that

face recognition is the most promising technique for busy transport terminals as it

is deemed more acceptable to the general public

Rather than using fingerprint scanners or other devices that require people to

touch, click or stand in an exact position, facial recognition systems use relatively

‘distant’ cameras, and therefore, are less intrusive. After extensive trials this has

led to higher levels of public acceptance than other forms of biometric – an

important factor in any deployment of such security systems.

The American Payroll Association (APA)

The American Payroll Association (APA) estimates that automation reduces

payroll processing costs by as much as 80 percent, much of that from reducing

errors in invoices and paychecks. A 2009 study commissioned for APA by the

Hackett Group found that 90 percent of organizations now have paperless payroll

distribution because of the advent of direct deposit and payment cards. In

addition, the study found that 58 percent of employees nationwide were taking
Management System with DTR and Payroll 9

advantage of self-service features to enter personal data into automated payroll

systems.

Reference: http://www.inc.com/guides/

B. Local Literature

John Aquilan made a comparable thesis entitled “Automation of time

attendance system” in 2004, it stated that the automation of the time attendance

records, time in and time out of every employee using barcode 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.

Ramon Floran in the Philippine Daily Inquirer, wrote on his article “The

Computer Edge of the New Employment and Opportunities” He stated that

computer gives a different feeling about what is happening in the company.

Business will be highly competitive and innovative because the computer

provides instant information. According to Andrea Cantoma, March 2004 entitled

“Computer Library System for St. James Academy” Stated that, in a manual

system in retrieving, maintaining security and piling records take place because of

the years gone by. Furthermore, these files were only kept in envelopes and

folders, prone to being misplaced. There are also instances when the right

information is given to a wrong person, which affect quality of the service.

Management System with DTR and Payroll 10

Related Studies

A. Foreign Study

A Study of Face Recognition as People Age

Haibin Ling, Stefano Soatto, Narayanan Ramanathan, and David W. Jacobs

Face recognition across ages is an important problem and has many

applications, such as passport photo verification, image retrieval, surveillance, etc.

This is a challenging task because human faces can vary a lot over time in many

aspects, including facial texture (e.g. wrinkles), shape (e.g. weight gain), facial

hair, presence of glasses, etc. In addition, the image acquisition conditions and

environment often undergo large changes, which can cause non-uniform

illumination and scale changes.

Face recognition and detection has been widely studied for several decades. A

lot of work has been done to handle the problem under different conditions,

including lighting, pose, expression, etc. The aging process and its effect on face

analysis, which we are interested in, has recently attracted research effort. Most

work has focused on modelling the aging process [20], age estimation [10, 12, 19,

27], and simulation [11, 21]. In comparison, face verification across ages is far

less studied. Ramanathan and Chellappa adapted the probabilistic eigenspace

framework [16] for face identification across age progression, which is most

closely related to our work. Instead of using a whole face, only a half face (called

a PointFive face) is used to alleviate the non-uniform illumination problem. Then,

eigenspace techniques and a Bayesian model are combined to capture the intra-
Management System with DTR and Payroll 11

personal and extra-personal image differences. Targeting the same task, our work

differs from their work in both the representation (we use gradient orientation

pyramids) and the classification frameworks (we use SVM).

Modelling face verification as a two-class classification problem is not new.

Moghaddam et al. used a Bayesian framework for the intra-personal and extra-

personal face classification. Phillips used SVM for face recognition problems and

observed good results on the FERET dataset compared to component based

approaches. Jonsson et al. used SVM for face authentication problems.

Our work is different in that we use the gradient orientation pyramid instead of

intensity differences or the intensity itself as a face description. Furthermore, we

are more interested in passport photos with age differences. Image gradients are

widely used for feature building and image representation. In most of these works,

the gradient magnitude information is included (e.g. to build a weighted

histogram). The direction of image gradient has been proposed for lighting

insensitive recognition and was shown to be insensitive to changes in lighting

direction under a Lambertian assumption. Recently, Hammond and Simoncelli

proposed a nonlinear image representation using only the orientation information.

Inspired by these works, we propose using the gradient orientation for robust face

representation with age variation. To the best of our knowledge, it is the first time

the gradient direction is combined with SVM for face verification problems. Our

experiments show that by discarding magnitude information, the gradient

orientation achieves significantly better recognition performance. We also

Management System with DTR and Payroll 12

propose using hierarchical structure to further improve discriminability. Our work

also relates to work on skin appearance. It is known that melanin and hemoglobin

are the two most important factors that determine human skin color. Tsumura et

al. used independent component analysis (ICA) to separate the effect of melanin

and hemoglobin as two independent components from skin color. They showed

that the logarithm of skin color can be decomposed as linear combinations of two

components corresponding to melanin and hemoglobin respectively. We show

that this fact is closely related to the insensitivity of gradient orientation across the

aging process.

Payroll System

Payroll System designed to produce payroll checks with appropriate

withholdings, benefits, allowances, and deductions for employees in multiple

companies, departments, and/or sub-departments. It has been designed to handle

up to 1,000,000 employees in 100 companies, 1,000 departments in each

company, and 36 Sub-departments in each department. Some of the features and

benefits of the Payroll System are multiple cost centers for payroll reporting, will

handle special non-taxable benefits for ministers, flexible withholding capability,

ability to split payroll expense between different cost centers, complete

governmental reporting; FICA, FUTA, SUTA, Workman's Compensation, W-2's,

and 1099's, Payroll check reversal, One check capability, Salaried, hourly, and

contract employees in the same payroll run, Combined processing for weekly, bi-
Management System with DTR and Payroll 13

weekly, semi-monthly, or monthly, Taxable and non-taxable benefits and

deductions, Multiple hourly rates for each employee, General ledger interface,

Check list UFD file for check reconciliation, Extensive personnel information for

each employee, Accrual of sick, vacation, and holiday hours, Flexible federal,

state, and local taxation, Multiple company, department, and sub-department

capability, Flexible benefit and deduction capability, Easy federal, state, and local

tax table maintenance, Split income over multiple companies, departments, sub-

departments, Payroll accrual/reversal capabilities, Time card data entry function,

Special message function for printing on check stubs.

Reference: http://www.titusinformationsystems.com

B. Local Study

Benefits of having an automated and computerized Payroll system

Cagayan de Oro City Hall Computerized Payroll System

The City Accounting Department has introduced an upgraded computerized

payroll system for permanent employees in a bid to improve its services and

maximize resources. This project, which was conceived two years ago, basically

aims to improve our services particularly in the processing of payrolls for

permanent employees, City Accountant Wilma Polley-Rugay told payroll in-

charge of the different departments and offices at City Hall during a briefing and

orientation on the concept of the one-month payroll system held Friday last week
Management System with DTR and Payroll 14

at the City Council session hall in Cagayan de Oro City. With the added features

of the new computerized payroll system, Rugay said the preparation, processing

and payment of payroll system to permanent employees would be hastened and

fast-tracked.

Adopting of the one-month payroll system is also beneficial, not only to the

City Accounting Department, but also to the payroll-in-charge as it would save

time, energy and resources. “Employees who handle payroll preparation and

processing can now attend to other office needs and concerns as the new payroll

system will lessen their workload,” she added. Under the new payroll system,

preparation of payroll, which reflects the accrued, amount payable every 15th and

30th day of the month, done only once. Unlike the time-consuming old payroll

system, preparation and processing of payroll is done twice a month covering the

first half and second half of the month

Computerized Payroll System of the Department of Health(DOH)

The Computerized Payroll System is a window based program especially

designed to facilitate and simplify the monthly preparation of general payroll and

related reports such as Standard computerized payroll system for use in all DOH

offices. It allows faster and more accurate computation of monthly gross income,

deductions and net salary, less-resource-consuming generation of General Payroll

and other payroll related reports and security and integrity of payroll data and

information. The features of computerized payroll system of DOH are graphical

user interface interactive and menu-driven program, systematic maintenance and

Management System with DTR and Payroll 15

retrieval of employee records. It is flexible as it provides options to include

additional fields for other compensation and deductions unique to an office or unit

and could do automatic computation of monthly net income, GSIS, PAG-IBIG,

Withholding Tax and other deductions, Y2K compliant, Fast and easy generation

of the General Payroll and all other payroll related reports which include Monthly

reports like GSIS and PAG-IBIG remittances, Denominations Report and Leave

Credits Report and annual Year-end Tax Reports. It has password security to

ensure the integrity of data. General payroll reports such as Payroll Summary

sheet, pay slip, Leave Credits Report, Withholding Tax Statement (W-2), BIR

Remittance Reports, GSIS Remittance Reports, PAG-IBIG Remittance Reports,

Other User-defined Reports (PERA, ACA, PNB, etc..) could be generated by this

system.

Andrew Mendrez (2007) a programmer, made a similar study for Vision

Designer Inc. It has an identification machine aimed at verifying a person entering

through the swiping of identification cards. After entering their given code

number, the identification cards are swiped in the machines card reader to trigger

the verification. If access granted the micro switch will then automatically unlock

to allow enter. This will help a lot in monitoring attendances accurately and more

precise. A group of computer engineers in Rebisco Biscuits 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 record as an alternative for Bundy clock. The means of getting inside
Management System with DTR and Payroll 16

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

of each employee then monitor and displays the time a particular employee logs

in and out.

Conceptual Model of the Study

The Figure below shows the conceptual model of the study. This indicates the

software and hardware requirements including the necessary skills needed to develop the
Management System with DTR and Payroll 17

system.

INPUT PROCESS OUTPUT

Knowledge Requirements
Web Development Project Design
.NET Languages
Database Management System Management
Project
Software Requirements Development
System w/ DTR
Operating System:
Windows 7, 8 or 10 and Payroll
6 Project Testing
Development tool:
Sublime 3, Visual
Studio 2015 Community
Edition

Languages: HTML,
PHP, CSS, C#/VB

Database: XAMPP

Hardware Requirements
Processor: Intel i3 or Higher
EVALUATION
Monitor: 18” Colored or

higher 32-bit

RAM: 4GB or higher

HDD: 500gb or higher

Camera: 20mp+ Camera

Figure 1. Conceptual Model of the Study

Operational Definition of Terms

Management System with DTR and Payroll 18

Facial Recognition refers to a biometric identification system which through pattern

analyzation and comparison can be used for identifying or verifying a specific person

from a digital image.

Sublime Text 3 is a code editor that is clean, functional and fast, that supports many

markup languages and programming languages, which also have built in features and

supports plugins and snippets.

Adobe Photoshop CC is the world’s most advanced image-editing software which was

published and developed by Adobe Systems for Windows and Mac OS.

XAMPP (Cross-Platform, Apache, MySQL, PHP and Perl) is an open-source and free

web server package, which was designed to help developers to review their work using

their computers even without connection to the internet.

Visual Studio 2015 is an integrated development environment used to create applications

for Windows, Android, iOS and modern web applications, which was developed by

Microsoft.

ISO 9126 is a standard used for evaluating software quality, which is divided into four

parts, which are quality model, external metrics, internal metrics, and quality in use

metrics.

Responsive refers to an approach on web designing that is aimed at making dynamic

changes to the website based on the size of the device being used to view it.

Access Level is a predefined access category for users of the system.

Management System with DTR and Payroll 19

WAN Based (Wide Area Network Based) refers to services or applications that are

accessible over a computer network, which typically consists of two or more local-area

networks, that are often connected through public networks, such as a telephone system.

LAN Based (Local Area Network Based) refers to services or applications that are

accessible over a computer network in which devices share a common wireless link or

communications line to a server.