PAYROLL MANAGEMENT SYSTEM

FRANCIS MUTHOKA MUSYOKI

SC200/0162/2019

BACHELOR OF SCIENCE IN COMPUTER SCIENCE

CHAPTER ONE: INTRODUCTION

1.1 BACKGROUND TO THE STUDY

Payroll Management is a program that has been designed for maintaining details of various
allowances and deductions that needs to be given to the employees of the organization or
company. It generates the salary sheet of the employees of the company that assists the accounts
department in many ways It is the sum of all financial records of salaries for an employee,
wages, bonuses and deductions. Some employees may be paid a steady salary while others are
paid for hours worked. All of these different payment methods are calculated by payroll
specialist and the appropriate pay checks are issued. By law, employers are required to pay
employees for their services rendered; through the payroll system, the processing of this payment
is possible.

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, loans, allowances, 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 efforts, the manager
provides direction by activities that are described as management functions (drucker, 1985)

There is no business process that’s more unfavourable towards employees satisfaction than
incorrect and improver payroll management. And this very same business function can help
reduce the impact on the environment through a paperless system. Introducing electronic or
online payroll programs does not only make your payroll management more efficient, it is also a
move to go green. With online payroll solutions, you ensure timely processes and become more
earth friendly, inside from increasing staff productivity and cutting costs.

Shifting to an online payroll service offers many benefits to the employees, the employers and
the environment. Whether you’re a big enterprise or a small and medium business with several
staff on the payroll, electronic payroll management system is a good investment for you.

PROJECT STATEMENT

The existing systems provide the basic functionalities needed to handle the in payroll
management system environment. The current systems involves numerous paper forms in
calculating, recording and documenting the employee’s payment records. This has led to
spreading of payment files in the financial management offices. There is no intelligence
of software in such case. However, to solve the above problem of using paper form of
calculating, recording and documentation, the project I intend to develop will solve by
calculating and documenting salaries electronically to reduce cumbersomeness of files in
the financial offices.

The existing payment system involves lots of paper work and manual calculating and
documentation. Since the calculation is done manually, it has a high rate of errors and
 subsequently high percentage rejection by insurance companies, taxation body and
encourages corruption. In addition, reimbursement for the performed services can take
long time hence delayed payment of the employees. Introduction of my software to the
organization will solve the issue of minor errors and late payment of employees.

Computerizing all records of each employee can be of great positive impact to the
organization management and administration. Computerized employee’s record keeping
provides accurate, up-to-date and complete information about employees. It also reduces
paperwork.

OBJECTIVES

In the course of this project, I intend to build a payroll management system with the aim of
developing more accurate program.

General Objective

The main objective of the Payroll Management System is to manage the details of the
employees, payments and salary. It also manages all information about the Employee, Payroll
and salary slips. Payroll efficiency saves time and money, ensures that paychecks go out on time
with the correct amount for each. It reduces the time needed for distributing the pay checks
manually, and also manual calculations of the additional, and deductions.

Specific Objectives

The proponents of the system project specifically aims;

a) To provide user-friendly system that will compute accurately the salary of the employees.
b) To store up-to- date information of the employees.
c) To reduce manual counting and distributing paychecks.
d) To save time and avoid errors.
e) Transparent and high security system of employee records
 PURPOSE OF THE PROJECT

Before, all payrolls used to be calculated manually without any help from a computer.
Professionals’ 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. They did all this by keeping numerous files filled
with track records for each and every person employed.

Nowadays, however, things are far simpler than they used to be. Because technology is always
dedicated to make things easier and better, quite a variety of computerised payroll system is
available to save us from the 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.

SCOPE O F THE PROJECT

Electronic 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 the statutory obligation.
The system is designed to Improve on the manual method of payroll processing. It includes the
features that can add employee’s records, edit employee’s information, delete employee’s
records and print/save the pay slips of each employee and updating employee’s information.

LIMITATIONS OF THE PROJECT

ON the other hand, this study limits only to the proposed automation of the basic manual payroll
management system. A proposed system that can only be accessed by authorized persons. It does
not support network topology implementation, online program or online transactions.