Title:

Daily Time Record and Payroll System with SMS Notfication of KCP

ABSTRACT:

The aim of this project is to identify and solve the problems concerning the traditional daily time record and
Payroll system. The institution experiences some concerns on monitoring the attendances of their employees and the
computation of the payroll of each employee. The traditional daily time record and Payroll system could no longer cope
with the number of employees. Through the analysis made by the proponents, it has been found that Payroll System DTR
and Payroll System with SMS may solve the current problems of the administration. The study covered the cost of the
proposed system, its operational functions, its benefits and its impact towards the institution. After the survey and
evaluation, it was concluded that the DTR and Payroll System with SMS is really beneficial to the institution. The system
facilitates the generation of payroll and monitoring of attendances in a cheaper, easier and faster way. It could reduce
failure of reporting and analysis, and could provide timely and accurate reliability/quality reports.

School Profile

CHAPTER 1. INTRODUCTION

Background of the study

As computer technology changes at such fast phase, many business sectors try to cope up by upgrading computer
system constantly in order to stay competitive. The multi-function ability of technology for its advance system is also an
important factor for a company to use software. It makes efficient use of the advance technology and has ambition to
discover more. Computers have the great impact on the profession of accounting and payroll process. However, in the
present time, other companies today do manually processing of payroll. Traditionally, this payroll process usually
happens during the payroll period in every each company. Since this process is a time-consuming effort, it must improve
and innovate.

Components
Determining the timekeeping and Calculation of gross salaries and deductible amounts is a tedious task which
involves risk. An institution opts for any of the following processing methods available:
a. Existing System. The system is the traditional payroll system which involves pen and ink, adding machine,
spreadsheet, etc. instead of computers, software and other computerized aids. The process was very popular when
there were no computerized means for payroll processing.
b. Proposed System. The system facilitates the generation of payroll and monitoring of attendances in a cheaper,
easier and faster way.
c. Accountant. Accountant is a professional having a degree or diploma in finance or accountancy. He /she is
responsible for all activities related to payroll accounting. He/she has sound knowledge of accounting principle and
globally accepted standards. The process add cost and value to the organization.
d. Daily Time Record. To monitor the attendance of an employee, having a DTR system allows a company to
effectively manage its employees by providing adequate data.
e. Payroll. Pay roll outsourcing involves a third party in the calculation of salaries and
deduction.The data is provided to the consultants/outsourcing firms.
 The various payroll functions undertaken by the outsourcing organizations are as follows:

•Analysis of Payroll records, payroll taxes

•Medical claim processing
• Employee Insurance & Provident fund processing
• Quality Audit procedures & planning
f. SMS. A system that can send a pay slip form with a total computation of salary and summary information of
employee for their employees via SMS.
ROLE OF EMERGING TECHNOLOGIES IN THE STUDY
In the history of technology, emerging technologies are contemporary advances and innovation in various fields
of technology. Various converging technologies have emerged in the technological convergence of different systems
evolving towards similar goals. Convergence can refer to previously separate technologies such as voice, data and video
that now share resources and interact with each other, creating new efficiencies. Emerging technologies are those
technical innovations which represent progressive developments within a field for competitive advantage; converging
technologies represent previously distinct fields which are in some way moving towards stronger inter-connection and
similar goals. However, the opinion on the degree of impact, status and economic viability of several emerging and
converging technologies vary.

1. Cloud Based Powerful Technology

Cloud-based interfaces will dominate the HR and payroll software environment, bring massive revolutionary
changes. Cloud-based technology will enable small-mid sized organizations in making radical automation to their payroll
processes. Both timekeeping and payroll processes will be computerized, thus providing decision makers better quality
information to make decisions on. Moving payroll administration to the cloud brings secure, seamless integration
between your organization’s core HR system and benefits providers. It is more reliable, accessible, data-enriched and
makes your company gain better visibility worldwide. Cloud-based technology mobilizes all human resource functions
and provides a propelling thrust that enhances business performance.

2. Enhancement of Mobile Employee Engagement

One of the biggest challenges of modern employers is engaging the tech-savvy millennial workforce in a creative
manner. The mobile phone is now a universal device, which can be innovatively used to be a communication touchstone
between an organization and its employee. Easy-to-use, attractive and convenient applications can aid workers to
maintain a steady bonding relationship with their HR Departments. Employees can access important information such as
monthly pay slips, tax deduction and leave applications at the touch of their mobile screen! In the coming years, the
mobile phone is going to be utilized as a power device through which all employees can access their sensitive HR data
such as personal details, records, performance appraisals, ratings & training feedback. It is surely a great way to stay
connected to employees on the go!

3. Aid to Strategic Decision Making

Manual inputs and management of data is a difficult, time-consuming process and the authenticity of the data
can be questioned as it could be riddled with human errors. However, payroll software guarantee that your data is 100%
accurate and error –free. High-level HR analytics can be performed on the highly accurate data churned in by payroll
software. It can help in making strategic human resource decisions about talent management, retention, training, and
compensation management and performance appraisal. Best payroll software can also be used a tool to categorize,
arrange and organize vast repositories of employee data.  It also helps in maintain data integrity at all levels and does not
compromise on security. You gain reputation with the industry auditors, and you can rely completely on the information
to make better decisions based upon it.

4. Integrated HR System
All human resource functions are completely integrated under automated payroll software. An integrated HR
solution has a better impact on organizational drivers and also engages the employees better. Another huge benefit of
having integrated software is the reduction of data duplication and elimination of data redundancy. In a cohesive
software system you have a single database, hence you input data once which can be shared and used by different
departments and processes. In addition, an integrated system is useful in giving a holistic bird’s eye view of the human
resources in an organization – right from their on-boarding process to training, talent development & performance
management. A payroll software can empower the employer to constructively manage the entire human resource
population of the firm through just a single interface!

5. Helps in managing compliance challenges

Payroll software handle large amounts of sensitive data, which is highly prone to being misused and exploited for
personal gain. Another big advantage of HR and Payroll software is that it has options which allow you to restrict the
accessibility to the software. A user can set up stringent visibility parameters to allow nominated persons to access the
data which reduces the risk of illegal manipulation or misuse of the data. The software tracks employees’ movements as
it captures the login entry of the employees accessing the data and making changes to it. Hence, a payroll software is a
great way to ensure the protection of data and enhance data security.

6.Time Saving
A payroll software is a boon for human resource managers as it helps them save the valuable time of employees.
Manual inputs and payroll calculation is a mammoth task for human resource employees and is tiring, arduous and
cumbersome. The software automated system does the back end calculations and produces periodic reports and
paychecks in quick turnaround time. Payroll software are competent enough to track all the employees’ activities right
from their job applications to retirement efficiently. Retrieving a single document from cluster of documents can also be
done easily which saves production hours.

Statements of the Problem/research problem

The proponent’s interest to conduct an investigation has led them to understand proposed system present
problems:
1. What Information requirements are needed in the design and development for the proposed DTR and Payroll System
with SMS Notification?
2. What features shall be incorporated in the proposed DTR and Payroll System with SMS Notification?
3. What is the usability level of the proposed DTR and Payroll System with SMS Notification?

Implication/ Significance of the Study

• To the administration. The proposed system will help the accounting section of KCP especially the Payroll
maker/bookkeeper and the Finance Officer. It will help to lessen the time and effort of the payroll
maker/bookkeeper preparing payments of employees. The System develop can accommodate changing figures
and produce a paperless environment through well design database.
 To the employees. The Employees will benefit in the system. They will find it easier to transact about their records
since searching in the system is faster than tracking in the record book or log book. Further determining or
computing the payroll manually will be eliminated that will lead to faster transaction.
• To the Proponents. This study will help the proponents to enhance the ability on how to create an
understandable computerized system in an easy way. This will serve to the proponents as a challenge to do a
better system.
• To the Future Researchers. This study gives 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.

CHAPTER II- REVIEW RELATED LITERATURE

Local Literature
Nowadays, many payroll system implemented in different companies here in the Philippines because payroll system
is one of the most important in establishing a business firms on how you provide the right and appropriate benefits for
the employees in the company. Business firms must operate within the boundaries of laws and government regulations,
Laws have been developed not only to protect consumers but also to promote competition among business and
industries. Over half a century on, it’s fair to say that payroll is now one of the most commonly automated business
operations; and certainly the most frequently the most used HR Solution that maintaining payroll record is one of the
most important financial tasks in any business.
According to the researcher (Aguilera, Bronzas, and Marqueses) of automated payroll system of Pamana Medical
Center (2010). A great payroll is really one of the most important issues to pay attention in almost every company. It is
impossible to handle payroll responsibilities with a pen, ledger sheet and calculator, but nowadays it is more convenient
for most companies to use computerized payroll software. The schools is also not exempted in using a payroll system
namely the study of payroll system for the teachers and staff of Liceo De Calamba (2010) the researchers (Maligaya,
Opeña, James Jordan) viewed that Liceo de Calamba aims to provide high quality of education for their students and to
establish great relationship with their employees by providing them with the right and appropriate benefits they must
enjoy as population of Liceo de Calamba increases, its system must perform competitively, Payroll system is needed in
order to have an accurate and error free in their payroll process and services.

Researchers (Alvarez, Aldrine, Gecolea ) of Krizalen enterprises(2014) uses a biometrics with online data analytics
dashboard to give krizalen enterprises an efficient payroll system that can automatically monitor the attendance and trip
tickets of the employees, drivers and helpers with the biometrics technology and data analytics that would help them in
the security and accuracy of the company payroll and information. Summing up the past situation of payroll inside
krizalen enterprises, there was need for a system that could help them with employee information management
attendance, monitoring, payroll processes, and assistance for the manager decision making. With this idea, the
proponents conducted a study for the development of software that can minimize data redundancy, inconsistency, and
manipulation. Employees can view their current pay and review their information from the database. And with updating
of the reports that can be viewed through the internet, the manager can view the recent activities within the proposed
system.

Foreign literature
Other studies that used a different programming language like Aishwarya Gupta in (2013) AMITY University UTTAR
Pradesh that develop a system entitled with employee payroll system. According to the researcher Employee Payroll
system is an application that enables users to create and store Employee Records. This application also provides a facility
which enables an administrator or an employee to generate a Pay slip. This application is helpful to the organization as it
maintains data of employees related to that organization. Java is used to create this application as it is a platform
independent language and can be used on a standalone machine as well as on a distributed network. Furthermore
applications developed in java can be extended to Internet based applications. Thus java was chosen to do the front end
task to design this application. That insisted the benefits of the application Easy calculations. Accuracy in payroll
calculation is necessary in every company. It requires efficiency to pay employees the right amount of money they have
earned, Reliable backup, Keeping large amounts of data for payroll can be challenging. This application stores your data in
the database of your system because you can’t store piles of papers and data manually, It can be easily handled by the
person who has basic knowledge of computer because it provides a user friendly environment, its hardware and software
configuration is not very expensive.

Also related study of Amrit Kadam (Aug 13, 2014) are include the study entitled Payroll System & Taxation the
purpose of this study is to aim of developing Employee Payroll Management is to provide an easy way not only to
automate all functionalities involved managing leaves and Payroll for the employees of institution, but also to provide full
functional reports to management of institution with the details about usage of leave facility & even deduction of income
tax & related taxes can be done by this system. 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 College, 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 reports. It is understood that we are tired of managing
thousands of odd papers, payslips, 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 your payroll
system by developing a customized payroll application that suits your specific requirements.

CHAPTER III- METHODOLOGIES

We used the Quantitative research, because the study aims to measure the levels of rating scale of  the
respondents to our proposed system.
Methods Used in the Study
1. The Descriptive Research Method. The proponents conduct a personal interview with employees. We talked to
the security personnel, HR, accountant for gathering of data about the system specification, needed for creating
our proposed system that can help them for their security, timekeeping and payroll system in an efficient
manner.
 2. Internet Research Method. The proponents also conduct an internet research to gather more data and topics
that are related to our study.
3. Library Research Method. The proponents also used library materials like thesis documentation and books that
are related to our study in gathering significant information and validation of our study.

Data Gathering Instruments

1. Interview. During requirements gathering stage, the proponents conduct interview with security personnel, HR,
accountant of KCP Campus, who gave the resources about the flow of the current system and the process of
computing the salaries, monitoring and timekeeping of the employees.
2. Survey questionnaire. The proponents conduct a survey to derive interpretations and inferences. The survey is
presented in accordance with the statement of the specific problem.

3. System Evaluation. The proponents led a collaborative assessment with accounting office about the existing
system and the development of the proposed system to generally provide the best overview of the project.
4. Observation. The proponents initialized a through observation of accounting office. Through this process, the
proponents gained knowledge to design that is usable and is not existing in the institution.
Tools used Development of the study
System Development Method
System development and project design shows how the DTR and Payroll System with SMS develops agile. The
proponents gathers all the information about the proposed system, analyze and plan for solution on how it works.
The proponents design and code the program trying every possible way to translate the solution into code finally
debugging and maintaining the program.

EVALUATE MEET

TEST Agile PLAN

DEVELOP DECISION

Figure 1.0 Agile Software Development Model

Meeting and Planning Phase

The proponents conducted and discussed the study information Management System. They came-up with School
to pioneer their study within KCP-Bambang Campus, hence, the proponents surveyed the said area/place as to the
compatibility of the proposed system. The problem with slow processing of information and payroll probed to diverse
quick and comprehensive information system device to store and retrieve significant records in a single database.
Design Phase
 There are many different ways on how the problem would solved. The team designed a program that would able
to secure their information specially in storing and retrieving data. This way the clients won’t be having problems in
keeping their documents.
Developing Phase
Through communication, the researchers start -to-end the development of the staff request in an iterate manner to see
all the functionalities of the study and realize progress of the DTR and Payroll System with SMS Notification.
Testing Phase
In this phase, the researchers tried to test and run the proposed system to access and to assure if it is free from
error.
Evaluate Phase
This phase, the researchers assessed and ensured that the requirements were met.

Language in the Development of the System

General Problem
The company does not have an existing computerized attendance management and payroll system. As such they can
have inaccurate computations for the wages of the employees, time consuming process and also security and reliability
of employee’s attendance issues often occurs
Specific Problems
• Time consuming process of payroll preparation
• Laborious payroll process.
• Misposting and understating of employee’s data.
• Inaccurate attendance for employee.
Objectives
This study is intended to design and develop a Computerized Payroll System with Biometrics Fingerprint Scanner for De
Leon Enterprises.
• To minimize the effort of the bookkeeper in processing the Payroll Slip and Payroll Form.
• To make an efficient and accurate computation of Payroll.
• To create a well-arranged database and to implement strong security of the system for data security.
• To provide more reliable time monitoring for the employees.
Scope
• preparing the Pay slip of each employee
• keeping of records safety and computing the exact wages of each employee
• Including the stored report list of employee
• Easily and efficiently track your employee time.
• Manage your time & attendance data and employee profiles.
• Eliminate buddy punching.
• Reduce the headaches and time associated with payroll.
• Log-in log-out process for security purpose
• Produce summary reports
Limitation
• Does not support network topology implementation
• Online program or online transaction