Payroll System Essay Example for Free

Payroll System Essay Chapter 1 INTRODUCTION Background of the Study Nowadays all establishment are becoming modernized, they use modern technologies to make their transaction fast, easy, and accurate in order to avoid waste of time and for the sake of safety and security. It also helps human to solve and understand complex problem and analysis such us the computational need of humans. Especially to business establishment or corporation processing enormous data and complex transaction. Payroll is an example of a complex transaction because it is a critical business operation dealing with numerous accounts and produce plenty and confidential files. Payroll is encompasses every employee of a company who receives a regular wages or other compensation due to each. In a company, payroll is the sum of all financial records of salaries for an employee, wages, bonuses and deductions. In accounting, payroll refers to the amount paid to employees for services they provided during a certain period of time. Payroll plays a major role in a company for several reasons. From an accounting perspective, payroll is crucial because payroll and payroll taxes considerably affect the net income of most companies and they are subject to laws and regulations (e.g. in the US payroll is subject to federal and state regulations). From an ethics in business viewpoint payroll is a critical department as employees are responsive to payroll errors and irregularities: good employee morale requires payroll to be paid timely and accurately. The primary mission of the payroll department is to ensure that all employees are paid accurately and timely with the correct withholdings and deductions, and to ensure the withholdings and deductions are remitted in a timely manner. This includes salary payments, tax withholdings, and deductions from a paycheck. Companies typically generate their payrolls at regular intervals, for the benefit of regular income to their employees. The regularity of the intervals varies from company to company, and sometimes between job grades within a given company. Common payroll frequencies include: daily, weekly, bi- weekly (once every two weeks), semi-monthly (twice per month), and to a somewhat lesser extent, monthly. Less common payroll frequencies include: 4-weekly (13 times per year), bi-monthly (once every two months), quarterly  (ones every 13 weeks), semi-annually (twice per year), and annually. Payroll Systems reduces employer costs, liability, and administrative burden through integrated solutions. Advantages include: Flexible and comprehensive solutions that organize, integrate, and simplify complex business processes Liability reduction through diligent compliance systems, support, and oversight Accurate and reliable processing and reporting Secure data management and transactions Applying manual procedure on a Payroll transaction involving the vast beat answer in that problem would be computer because computers can simulate enormous data and can process complex transaction in a fast and efficient way. It can generate numerous accounts and data accurately. A Computerized Payroll System will not only provide accurate calculation and fast process of Payroll transaction but it will secure data through security implementation and accordingly arrange files provided by a well-designed database that will produce a paperless environment. The municipality of Sta. Josefa was created on March 1, 1965 under Republic Act. No. 1515. The municipality, as a political and corporate body, is mandated to ensure and support the preservation and enrichment of culture, promote health and safety, enhance the right of the people to a balanced ecology, encourage and support the development of appropriate and self- reliant and technological capabilities, improve public morals, enhance economic prosperity and social justice, maintain peace and order, and preserve the comfort and convenience of its people. Sta. Josefa’s primary vision is to grow as a prosperous and progressive agri-industrial municipality wherein people live peacefully in a just-clean and ecologically balance and God-loving community. Her mission is to promote genuine and active peoples participation in local development and governance geared towards equitable and stable economic growth based on agri-industrialization, accessible service delivery and sustainable environmental management. The municipality maintained three types of fund, namely; General Fund, Special Education fund, and Trust Fund. The general fund includes the economic enterprises which the municipality runs, such as  the Farm Level Grain Center (FLGC), the Sta. Josefa Water Development System (SJWDS), the Motorpool Operations and the utilization of the 20% Municipal Development Fund. Presently, Local Government Unit (LGU) of Sta. Josefa, Agusan Del Sur is practicing the manual process on their Payroll System. It has separate manual process for the Regular Employees and J.O (Job-Order) employees. The total number of employees in the Local Government Unit (LGU) of Sta. Josefa, Agusan Del Sur is 90 regular employees and 50 job-order employees. Statement of the Problems 1. Time consuming process of payroll preparation The LGU of Sta. Joefa still using the manual method of payroll process. A lot of jobs are assigned to the payroll maker and accounting clerk, with cause’s inconvenience to their services. In this method, it will need more time and manpower to complete the payroll of each employee. 2. Laborious payroll process Nobody could admit the inescapable fact that what makes the manual procedure take a long time to finish the task is due to the many steps and processes to undergo. There is the collection of data such as DTR, REMITTANCES, and individual manual calculation of payroll. Individual data is transferred through sheets, encoding and double checking after calculating. All this process requires labor and effort to complete the task. 3. Misposting and understating of employee’s data The logical process of manual procedure result to too much time consumption. It often times result in misposting and understating of each employees data of plenty of files that is hard to accommodate. Review of Related Literature Payroll System Development and Integration. The client provides Employee Benefits Consulting, Human Resource Services, Benefits Administration, and Payroll, Property and Casualty and other services for client companies, enabling them to focus on their core businesses. The Challenge The client had payroll as part of their vast array of services, but wanted to provide clients with a single system of entry to manage and process payroll data.  Ã¢â‚¬Å"We needed to make a truly payroll integrated product from two separate systems with different programming, different databases and different technologies,† said the company’s Director of IT. â€Å"It was critical to have the solution developed for us in a timely manner in order to maximize the benefits for our valued clients.† The new solution would have to integrate a recently acquired nationally recognized payroll application — ExecuPay — with the client’s already already-established Web-based human resources and based a benefits system, AccessHR. The solution needed to share data between the two databases of each product as well as provide web based screens to expose all the payroll functionality to the web-based users. All of this needed to be accomplished behind behind-the-scenes, without any loss of existing thought information or any complications for legacy users of the legacy HR benefits system, during or after integration. â€Å"Our biggest challenge was that we specialize in HR benefits administration and consulting, not in software development,† the Director of IT said. â€Å"We chose Arris because the company had payment,† insurance industry experience with some of their other clients.† The Solution Arris identified the detailed requirements for the payroll functionality by analyzing the ExecuPay client application and then reverse engineering it to seamlessly integrate a single environment reverse-engineering that would give the client the desired single point of access.