Design and Implementation of Payroll Management System

Introduction

Payroll system is the heart of any Human Resource System of an organization. The solution has to take care of the calculation of salary as per rules of the company, income tax calculation and various deductions to be done from the salary including statutory deductions like Income tax and provident fund deductions. It has to generate pay-slip, cheque summary and MIS report

1.1 Background Of The Study

It is understood that we are tired of managing thousand of odd papers, pay slips, payroll reports, and salary details and so on. Imagine that we have a payroll processing system which will generate our pay slips and payroll reports within seconds. We can help others automated payroll system by developing a customized payroll application that suits their specific requirements.

1.2 Statement Of The Problem

Over the years, manual method of payroll has been used. This method has its disadvantage. It has been proven to be very ineffective and inefficient. Some of the disadvantages are

The job of preparing salary payment annually is tedious and causes delay.

As a result of the problem above, manual methods have a lot of discrepancies and raise doubts in the voucher.

This method encourages fraud figures are easily manipulated and changed. The manual method requires people who are competent in mathematics related computation to do a reliable job. As a result people of such are very scarce.

1.3 Objective Of The Study

The main aim of developing the Payroll Management System is to provide an easy way not only to automate all functionalities involved, also managing leaves and Payroll for the employees of the Federal Polytechnic Nekede. To provide full functional reports to the management of the school with the details about usage of leave facilities.

1.4 Significance Of The Study

The major importance of the study is to improve the efficiency of payroll management and to quickly find out information of an employee details to provide easy and faster access information, also to provide user friendly environment for staff workers during payroll activity. Department can use it sitting at different locations simultaneously.

1.5 Scope Of The Study

This application works in multiple pc’s installed on multiple computers but sharing same database by which users of different department can use it sitting at different locations simultaneously.
But in future we can make the application where the database will be hosted in order to manage all the departments which will be located in different places and by keeping domain of application online.

1.6 Limitation Of The Study

In the process of carrying out this research work, some factors tried to hinder the free flow of work. The researcher met with many problems and setbacks during this research work. Prominent among such problems was financial handicap. In view of the economic realities the researcher found it difficult to raise enough money in order to do a thorough work.

1.7 Definition Of Terms

EPM:

Employee Payroll Management

Payroll:

List of employee and all their wages and salaries including their allowance and deductions.

Salary:

This is usually a monthly payment for regular employment on a yearly basis.

Shift Allowance:

This is the allowance granted to an employee who works on shift basis.

Arrears:

This represents the accumulation of staff entitlement.

Rent Subsidy:

These represent the rent given to an employee for his or her house.

Flowchart:

It is a pictorial representation of information in data processing by means of symbols and interconnecting linking the generations.