chapter IV

Chapter IV

THEORETICAL FRAMEWORK

This chapter includes the theoretical framework which served as the anchor for the study. It discussed the system theory which served as the basic in the development of the study.

Systems theory was introduced by biologist L. von Bertalanffy in the 1930s as a modeling devise that accommodates the interrelationships and overlap between separate disciplines. The reality is that when scientists and philosophers first tried to explain how things worked in the universe, there were no separate disciplines. Related components of a problem were investigated in isolation from one another. The Systems Theory introduced by von Bertalanffy states us of the value of integration of parts of a problem. Problems cannot be solved as well if they are considered in isolation from interrelated components. Enormous advantage systems analysts have in knowing the definitions of systems theory is that they present us with ideal guidelines for initial familiarization with a new problem, which of course is a new system.

The History of Payroll in the U.S. is the definitive chronicle of the evolution of the profession and the process from Colonial America through the end of the 20th century. Discover the astounding, and heretofore unpublished, history of payroll, compiled through painstaking research into the people, organizations, and historical milestones that transformed the Paymaster of the past into the Payroll Professional of the future. This important addition to every payroll library includes rare photos and illustrations.

Leonard A. Haug, CPP, has had a passion for payroll ever since he assumed his position as Payroll Manager for Digital Equipment Corporation in the mid-1980s. Over the next 15 years he would build and lead his payroll team to recognized payroll "best in class" status in areas of quality, customer service, and cost. For almost as long, Leonard has been an active member of the American Payroll Association, serving as both member and chairperson of many boards and committees.

He has received numerous accolades for his contributions to the profession, including the APA's Payroll Man of the Year Award in 1994. He has authored articles, publications, and books and is a frequent speaker on payroll and related topics.

Chapter V

DATA GATHERING PROCEDURE AND OUTPUT

Data gathering is one of the requirements to complete the proposed system. Data gathering is not an easy task because the proponent does not have enough knowledge when it comes to payroll. The proponents conducted several methods that would provide idea and information to accomplish the task. These methods includes conducting series of interview and online and library research.

There were options in order to come up with result and also to gather information needed to support the development of the system, the proponents made a plan of algorithm. It is a throught step by step procedure of gathering data and output. Primarily, the proponents conducted preliminary investigations to the possible business functions having manual practice on their system. From the three chosen business function for the proposal, namely Website for Twin Hearts Realty Corporation, Online Bible Stories and Computerized Payroll System for Capiz Electric Cooperative, Computerized Payroll System for Capiz Electric Cooperative best suited the standards required by the proposed system.

After rigid selection, the proponents submitted a letter to set an appointment with the Capiz Electric Cooperative for a formal interview to the General Manager. After one and half weeks of waiting, the respondents finally granted the proponent an interview. The proponents were first introduced to the general manager and then to the finance manager of finance department and to the payroll maker for the history, function and current development of payroll of capiz electric cooperative. The methods used for data gathering were conducting interview to the finance manager. The objectives of this interview are to be acquainted with the actual procedure in conducting their transaction to develop the system.

The proponents also implemented a series of research about computerized payroll system. This study gives knowledge to the researcher on how to create a computerized system in an understandable way. This will serve as a fresh ground to the researchers whose study will be related in the field of information technology.

Chapter VI

ANALYSIS


In this chapter, the proponents started gathering information about computerized payroll system that can help the users to lessen the time, effort and the problem encountered in the payroll process in terms of generating reports of each employee. The proponents used Fourth Generation Techniques as the methodology of the study to provide comprehensive guidelines to follow for completing activity including specific model, tools and techniques.

Requirements Gathering

In this phase, the proponents interviewed the respondents and other people who have extensive idea and knowledge to gather the data and the proponents knew and understood the flow of information in the specified system. The proponents analyzed the gathered data or information and the gathered data was translated into operational prototype.

Design Strategy

In this phase, the proponents translated the gathered data into set of presentation that described the data, architectures, algorithm procedures and interface characteristics. The proponents used 4GT because without design for large project it will cause difficulties such as poor quality and poor maintenance ability.

Implementation using Fourth Generation Languages (4GL)

In this phase, the design drafts of data or information gathered from CAPELCO were implemented using the appropriate language. The developers used the design representation converted into artificial languages and resulted into instruction that can be executed by computers. The gathered requirements and design were executed using the programming language, Microsoft Visual Basic 2008.

Testing

In this phase, the proponents develop a meaningful documentation and tested the system in the computer hardware, software and overall process to determine that the system will not create errors during runtime, especially when it is being used.

Chapter VII

SYSTEM DESIGN SPECIFICATION


The Computerized Payroll System for Capiz Electric Cooperative was developed with the use of Microsoft Visual Basic 2008. The developed system offered a user friendly feature that would enhance the current Payroll System of Capelco. The splash screen that will display the log-in form and that in turn ask the user name and password from the user before he/she could access the system as a security precaution of all the data stored in database.

The main form will be shown and this contains the menu bar. The menu bar is displayed through the use of menu editor and also buttons and labels that are arranged accordingly to its usage including Files, Reports, Tools and Help.

The File menu contains the make payroll, compute payslip and employee information command. Make payroll is used to compute the salary and deductions of all employees every first period and second period of the month. The compute payslip is used to compute the salary ad deductions of each employee every first period and second period of the month. Employee information used to add, edit and delete the new and old employee records. Reports will show the preview of payroll proof list, payroll register and payslip for regular and job order employees. Tools Menu includes change user which could change the user name and password of the user. It provides back up files. Help Menu includes the Programmer Form and About the Program.

Chapter VIII

SYSTEM REQUIREMENT SPECIFICATION


Hardware Requirements

Minimum Recommended
Processor 1.0 GHz 1.5
DRAM 256 MB 1 GB
Hard Disk 300 MB of free space on system drive
Monitor any model
Printer Required
Ink InkJet
Software Requirements
Windows XP/Windows Vista/Windows 7
Microsoft Visual Studio 2008
Microsoft Access

Human Resource Requirements

The user must be computer literate and posses the skills to operate or interact with the programs or application.

Chapter IX

SUMMARY, CONCLUSION and RECOMMENDATION

SUMMARY

Capiz Electric Cooperative is the most common source of Electricity in Roxas City. Due to the increasing numbers of people whose using electricity every year, the cooperative requires some support. This increasing of number of people who used electricity means more task and transaction to be processed, record to be stored and the increase of task for the employees and the personnel of the said cooperative. With the help of the modern technology and by the use of internet, the proponents learned more about the importance of a computerized payroll system. With the help of the proposed computerized payroll system, the proponents can help the respondents to lessen the problem encountered in the payroll process in terms of generating reports of each employee. This system will provides fast, reliable and efficient computerized payroll transaction. By this study, the Capiz Electric Cooperative will be given significant contribution especially for the improvement of their payroll transaction.

CONCLUSION

The Capiz Electric Cooperative renders inevitable standards of high quality of services for their employees. The Accounting Department of CAPELCO still uses manual method in doing their payroll tasks, because it takes lots of time and efforts and also focuses in recording, calculating, and generating reports. It is a pressure for the Payroll Maker to do the task to avoid committing errors and revisions.
Through the Computerized Payroll System, the Capiz Electric Cooperative will be able to generate accurate records and reports since it is stored in database. The system also provides security where it is only accessible to the authorized user or the person in charge using its own password.

RECOMMENDATION

The Proponent developed a Computerized Payroll System for Capiz Electric Cooperative (CAPELCO) to know the needs and the problem encountered of the Accounting Department, especially the Payroll Maker when it comes to security, the date efficiency of generating necessary reports. The proponents highly recommended the online payroll site for Capiz Electric Cooperative. The employees can search online about their payroll slip and other reports. The proponents recommended also to CAPELCO to implement the system using Local Area Network (LAN). The proponents recommend networking connection to the proposed system to connect and shared data from one Computer to another.

chapter III

Chapter III

METHODOLOGY OF THE STUDY

This study employed the Fourth Generation Technique also known as 4GT. This is a suitable method used in developing a system.

Fourth Generation Technique (4GT) best suits the system developed because it has a characteristic that makes the system methodical and systematic. Fourth generation techniques (4GT) encompasses a broad array of software tools that have one thing in common each enables the software engineer to specify some characteristic of software at a high level. The tool then automatically generates source code based on the developer's specification. There is little debate that the higher the level at which software can be specified to a machine, the faster a program can be built. The 4GT paradigm for software engineering focuses on the ability to specify software using specialized language forms or a graphic notation that describes the problem to be solved in terms that the customer can understand.

Technique (4GT) involve different phase such as Requirements Gathering, Design Strategy, Implementation using Fourth Generation Languages and Testing.

Requirements Gathering

The first phase of 4GT is the Requirements Gathering. This is the phase where the definition of requirements necessary in building software is defined. This is where the gathered data is translated into operational prototype, which is necessary in developing a design strategy for the system. This phase was done by interviewing the respondent and other people who have extensive knowledge in developing a specified system.

Design Strategy

In this phase, the gathered data is translated into a set of presentation that describes data structures, architecture, algorithmic procedures and interface characteristic. This is the phase where the proponents defined how the system is to be developed. The use of 4GT without design for large project will cause difficulties such as poor quality, poor maintenance ability, and poor customer acceptance that are often encountered when developing software using conventional approaches. All this necessary in order to proceed to the next phase called implementation.

Implementation using Fourth Generation Languages (4GL)

This the third phase of 4GT wherein the design presentation is translated to an artificial language that result in instruction that could be executed by the computer. The gathered requirements and design are put into a machine executable form using the newest programming language the Microsoft Visual Basic 2008 as a tool.

Testing

The last phase is testing, in computer hardware and software development is used at key checkpoints in the overall process to determine whether objectives are being met. This is required to ensure the system quality and that it will not create errors during run time, especially when it is being used.

chapter II

Chapter II

REVIEW OF RELATED LITERATURE

This chapter includes related studies and literature that have similar concepts to the study being conducted. This chapter covers the conceptual literature, foreign studies and local studies.

CONCEPTUAL LITERATURE

Payroll System is a flexible compensation administration solution. It is designed to help human resource professionals as well as finance and accounting personnel to manage employee compensation, deductions, allowances, and benefits in an organization. The system is integrated with the Employee Information System, offers efficient features and functionality to manage company's expenses (www.blastasia.com).

Payroll is an application that lends itself well to the computer because of its repetitive procedures and calculation. A Computerized payroll system can perform the same basic function as those performed manually by payroll clerk. The important differences are the computer’s speed, accuracy, reliability, and ability to easily generate reports. In a computerized payroll system, the computer stores data such as an employee’s name, address, social security number, marital status, number of withholding allowances, pay rate and voluntary deductions. At the end of each pay period, the operator enters all payroll transaction data, such as regular and overtime hours for each employee and deduction into the computer. The computer calculates all withholding taxes and other deductions and accumulates and updates the earnings and withholdings (Www.wadsworth.com).

FOREIGN STUDIES

Titus Information Payroll System

Titus Information Payroll system is 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-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. (Www.titusinformationsystems.com)
Canadian Payroll System

Sage Accpac Canadian Payroll is a flexible module that gives you complete control over employee earnings and benefits, special payroll situations and government reporting, ensuring that your company's payroll requirements and personnel policies are accurate to the penny. You can enter or import timecards, enter after-the-fact paycheques, run automatic calculations or even combine all three methods to get your pay data into the system and your paycheques deployed on time. Payroll handles all pay frequencies; multiple work states; unlimited earnings, deductions, benefits and taxes; and other pay factors such as expense reimbursements, accruals and advances
(www.2020software.com).

LOCAL STUDIES

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 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. (www.sunstar.com.ph).

Computerized Payroll System of 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 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. (www2.doh.gov.ph).

This studies on the payroll system of DOH and Cagayan de Oro City Hall bears a resemblance on this study because they focus on the development of a similar system.

capelco documentation 1st cretic

Chapter I

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 helped human to solve and understand complex problem and analysis such us the computational need. For 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 that deals with numerous accounts and produces plenty of confidential files. Payroll encompasses every employee of a company who received regular wages or other compensation from the company.
Applying manual procedure on a payroll transaction involving a vast number of employee is a difficult and time consuming process. The answer in that problem would be computer because computer can process enormous data and 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 also secure data through security implementation and accordingly arrange files provided by a well designed database that will produce a paperless environment.

Capiz Electric Cooperative is government regulated by Electric Regulatory Commission (ERC). Capiz Electric Cooperative is headed and managed by a General Manager from National Electrification Administration (NEA).
Capiz Electric Cooperative is formed by the National Electrification Administration last June 07,1971 and registered with NEA last June 16, 1971. Several projects were proposed and granted by NEA and the cooperative rapidly expanded. On February 16, 1978, National Electrification Commission (NEC) certificate of franchise NO. 004 issued to Capiz Electric Cooperative the license to operate electric light and power for 50 years in area comprising Roxas City and the sixteen town of Capiz namely Panay, Panitan. Pontevedra, Maayon, President Roxas and Pilar, Ivisan, Sapian, Jamindan, Mambusao, Sigma, Dao, Cuartero, Dumarao, Dumalag Tapaz and the City of Roxas. Capiz Electric Cooperative has six Area Offices: Roxas City, President Roxas, Mambusao, Dao, Dumalag and the main office is in Timpas, Panitan.
Presently, Capiz Electric Cooperative (CAPELCO) is practicing the manual process on their Payroll System. It has separate manual process for the Regular Employees and Job-Order employees. The total number of employees in Capiz Electric Cooperative is 339. The regular employees are 299 and 40 job-order employees.

The proposed Computerized Payroll System for Capiz Electric Cooperative needs to have a methodology because methodology will provide comprehensive guidelines to follow for completing activity including specific model, tools and techniques. The proponents choose Fourth Generation Techniques as the methodology of the study.

Statement of the Problems

1. Time consuming process of manual payroll preparation.

The Capiz Electric Cooperative is used the manual method of payroll process. A lot of jobs were assigned to the payroll makers which cause an inconvenience to their services. This method it will needs more time and manpower to complete the payroll of the employees.

2. Laborious payroll process that results to the delay in generation of payroll reports.

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 resulted to too much time consumption. It oftentimes resulted to misposting and understating of each employee’s data that are hard to accommodate.


Objectives of the Study

This study intended to develop a Computerized Payroll System for Capiz Electric Cooperative for calendar year 2010.

Specifically, this study aim to:


1• Minimize the time consumed in processing and preparing Payroll Slip, Forms and reports.
2• Automate the process of payroll computation for an accurate and convenient generation of payroll reports.
3. Organize employee’s data and payroll records through a well-managed database and a reliable security scheme for proper storage of all payroll-related information.



Significance of the Study


Accounting Department and Payroll Maker of Capiz Electric Cooperative

The proposed system would help the Finance Department of Capiz Electric Cooperative especially the Payroll maker and the Finance Officer. It will help lessen the time and effort of the payroll maker in preparing the payments of employees. The System can accommodate changing figures and produce a paperless environment through well design database.

Proponents

This study would help the proponents to enhance their ability on how to create an easily understandable computerized system. This will serve as a challenge for the proponents to do a better system.

Other Researcher

This study gave knowledge to the researcher on how to create a Computerized System in understandable way. This will serve as a fresh ground for the researcher whose study will be related in the field of Information Technology.

Scope and Limitation

Scope

This study is designed to develop a Computerized Payroll System for Capiz Electric Cooperative. It covers the processes of preparing the pay slip of the regular and job order employee, keeping of records, computing the wages and generating. The stored report list which includes monthly salary, basic salary, overtime, gross payment, net pay, and Deduction such as withholding tax, SSS and Medicare, SSS loan, Advances, Multi-purpose Loan, PAG-IBIG Contribution, CAPELCO Loan, Cash Advance, Bond, Energy Sales, Motorcycle Loan, Canteen, Under time, WEBECA, Union loan, Lot/housing loan and Maxicare.

The proposed Payroll System for Capiz Electric Cooperative is expected to generate Pay Slip of Employees, Report list of employees, Payroll register of regular and job-order employees, and Payroll form for every pay period.

Limitation

The proposed Computerized Payroll System for Capiz Electric Cooperative does not support network topology implementation and online program or online transaction.