CHAP.1 Rendell

Archdiocese of Tuguegarao PACUCOA LEVEL III ACCREDITED PROGRAMS:
LYCEUM OF APARRI Liberal Arts, Business Administration, Secondary Education

3515 Aparri, Cagayan PACUCOA LEVEL II ACCREDITED PROGRAMS:
High School, Nursing, Criminology, Computer Science
Telephone: 078-888-2075 Telefax: 078-888-2736
lyceumaparri@yahoo.com
AUTOMATED PAYROLL SYSTEM
FOR HOTEL DIAN – APARRI, CAGAYAN
A Project Study Presented to
The Faculty of the Undergraduate Program
College of Information Technology and Computing Sciences
Lyceum of Aparri
By:
Christian Miramonte Rabal
Rendell Guevarra Figueroa
Marc Christian Garcia Quimma
Laxate Retia
Chapter 1
PROJECT OVERVIEW
Background of the study
In today’s world, we are living in an era wherein
technology governs. but still, a lot of companies are using
manual systems. Stagnant having a manual system can prove
useful, but as for a company in which efficiency and time
is a factor, a computerized system can operate with much
more ease and store or speed – up information.
Computerized systems are made by IT professionals to
provide easier ways to manipulate. Like automated payroll
system is just one of the many computerized systems that
aims to provide an easier way to manage and process
salaries, taxes, leave days and other employment – based
information relating to remuneration.
A related study of Amrit Kadam ( Aug 13, 2014) are
include the study entitled College Payroll System & Taxation
Laxate Retia
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 College, but also to provide
full functional reports to management of College 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, checks summary and
MIS reports. It is understood that we are tired of managing
thousands 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
your payroll system by developing a customized payroll
application that suits your specific requirements.
Laxate Retia
According to the researcher of Nyanmaru Computerized
Payroll System (2013) 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 encompassing every employee of a company
who receives a regular wages or other compensation due to
each. 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
Laxate Retia
calculation and fast process of Payroll transaction but it
will secure data through security.
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
Laxate Retia
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.
According to United States Department of Agriculture
(2013), payroll system or sometimes known as personnel
system is a full-service integrated system offering a full
range of personnel and payroll processing using a database
which linked many modular subsystems. The database consists
of current and prior salary payment information, personnel
actions, name and address information, and time and
attendance data. These records are maintained so that
information can be accessed when needed. The system also
interfaces with accounting systems and various other
administrative systems, which facilitates reporting
processes.
Computer based payroll system - In an organization, there
are many departments and each department has a payroll
Laxate Retia
section to manage its payroll activities. Each section has
to perform necessary operations like data collection and
preparation, entry, updates, monitoring and reporting of
data. Many of these existing practices and procedures need
to be reassessed at this time of changing needs, changing
demands of employees and changing technologies. With this
payroll system, payroll section would be able to keep a
record of employees including their personnel data, pay
slips, allowances, deductions, leave, savings and taxes
etc… Kritika Mahajan, Shilpa Shukla , Nitasha Soni (2015).
EPIC has identified when and how workers get paid as
an untapped opportunity for building financial resiliency
and security in the face of growing volatility. This brief
explores the ways in which payroll innovation and
technology can help workers better manage volatility,
including: • giving workers quicker access to funds they
have already earned; • rescheduling paydays to better align
with lumpy expenses like rent; • customizing paychecks so
that bills, debt payments, and other expenses are deducted
automatically; and • linking paychecks to a worker’s other
financial accounts so that payroll deductions for savings
Laxate Retia
or other uses can be automatically dialed up or down based
on the worker’s current cash flow position. David S.
Mitchell (May. 2017).
Based on the research study entitled "PAYROLL ERP
SYSTEM" of Advantos Systems (2013), explains that it is
vital that a payroll system must allow the user to set up
an employee paycheck record. It also emphasized the use of
separate salary record for each employee and the proper
maintenance of data on tax rates and exemptions.
Based on the system study entitled "INFONETICS PAYROLL
SYSTEM"(2012), emphasizes that a payroll system must be
user-interactive in all its processes (including
maintenance of payroll records ad payroll reports and
checks printing). It also explains that the system must be
capable of maintaining accuracy of tax tables and
deductions using a concrete formula.
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
Laxate Retia
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.
Time Clock Wizard, Inc (2017), there are benefits from the
employee’s perspective as well. If an employee wishes to see
their total hours worked for the pay period, they can log into
his account and retrieve this information at any time. There is
no need to contact the payroll manager for this information. This
gives the employee more control over viewing their payroll
Laxate Retia
information. Manual timecards and timesheets can be misplaced. If
a punch card is missing, there is no way to recover that data.
Also, the physical timecards or timesheets have to be submitted
to the payroll manager on time. If the payroll manager does not
receive them on time, payment for that employee, as well as the
entire staff can be delayed. A computerized system uses no
physical timecards or timesheets. All information is stored on a
secure server, and the data is routinely backed up. There is no
risk of a loss in data. The payroll manager also does not have to
rely on the receipt of all punch cards before processing payroll.
That data is readily available and retrievable, whenever
required. Manual systems are vulnerable to human errors. If a
payroll clerk has to take information from punch cards and key in
that information into a spreadsheet, typing errors can be made.
If an employee is overpaid or underpaid because of errors, it
will take more time and money to fix these errors, and can result
in low morale. A computerized payroll system eliminates these
types of manual errors. The time clocked in and out is directly
fed into the software with no manual transferring of data. Time
tracking software has been updated for today’s working
conditions. When payroll functions are computerized, accuracy and
efficiency can be greatly improved. A company can save money and
time in their payroll operations.
Laxate Retia
The schools is also 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.
According to the researcher (Aguilera, Bronzas, and
Marqueses) of automated payroll system of Pamana School
(2010). A great payroll is really one of the most important
issues to pay attention in almost every companies or
school. 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.
Based on the research study entitled "PAYROLL ERP
SYSTEM" of Advantos Systems (2013), explains that it is
Laxate Retia
vital that a payroll system must allow the user to set up
an employee paycheck record. It also emphasized the use of
separate salary record for each employee and the proper
maintenance of data on tax rates and exemptions.
Furthermore, payroll system can help SMEs to reduced
HR workload which payroll system can focus on core
business, improved productivity (Mark et al, 2008).
Based on the research study entitled computerized
payroll system of Department of Health (DOH) (2007)
explains that a computerized payroll system is a window
based program which is specially designed to facilitate and
simplify the monthly preparation of general payroll and
related reports. Also that is must be flexible to provide
option which allows the user to hold additional fields for
other compensations and deduction which was unique to an
office the company.
Based on the undergraduate study made on Cagayan De
Oro City Hall entitled "Cagayan De Oro City Hall
Computerized Payroll System" stated that is important that
Laxate Retia
the system must be easily accessible, fast-tracked and
secure.
According to the book "System Documentation" (2010),
states that “a computerized payroll system must have the
ability to update and maintain employee information and to
generate required outputs including paychecks, reports to
management and to the government.”
According to a blogged article in blastasia.com
(2007), says that “a computerized payroll system is
designed to help human resource professional as well as
finance and accounting personnel to manage employee
compensation, deductions, allowances, and benefits in an
organization.”
According to the book of Trias (2010)entitled “What is
a Payroll System?”, emphasized the importance of accurate
calculations in a successful payroll system. It is that a
payroll system is defined as “a system programmed to
calculate taxes and deductions”, which can also be
internet-based or offsite.
Laxate Retia
In the book of Musa (2009), entitled Philippine Based-
Payroll System, emphasized the major elements or variables
that a Computerized Payroll System consists. The author
indicated the specific items the database of a Philippine-
Based Computerized Payroll System must have.
According to the book of Lamberte, entitled” Philippine
Payment System, stated that basic and essential parts of
any payment –related system, the flow of information
providing payment instructions and the flow of funds. He
also emphasized that this flows requires an instrument to
convey the information about the transactions, this is
where a computerized payment system (in this case a Payroll
System) comes in.
AHNEX Builders Network Based Payroll System
Dayrit, 2007, AHNEX Builder Network Based Payroll System
was designed for the newly set-up AHNEX Builders. The
company is currently using Microsoft Excel in computing net
pay which is time consuming. This proposed system will help
in the work of the users in an easier process. Visual basic
6, Microsoft Access, and Crystal Report 9 were used for
Laxate Retia
designing and creating the system. This was designed to
meet the requirements of the company for a better and more
enhanced system. Keeping track of record of employees,
computing the salary and wages of each employee and
generating reports were included in the proposed system.
This automatically computes
In our generation, computers made a significant role
to both company and the group as well. To the company, it
can help them lessen their time in using those data
required in the Payroll System. It can provide a more
accurate and efficient managed system, especially to the
person who is in charge in computing the Payroll.
In the case of HOTEL DIAN, APARRI, their payroll
systems is still done manually in giving the payments of
the Employees.
In this regard, the researchers believed that Hotel
Dian Aparri needs a change of manual payroll system to an
automated one in order to make their work easier in giving
the payments of the employees.
Company Profile
Laxate Retia
Hotel Dian Aparri is a sister company of Criselda’s
Restaurant (est. 1986) which is being managed by two young
hoteliers and restaurateurs Dian Jaycerette Dayag and Dawn
Jayda Dayag, who are both Graduates of Bachelor of Science
in Hotel Restaurant Management major in Culinary Arts and
Institutional Management. The sisters have received
trainings and gained experiences locally and abroad which
made them decide to expand their line business.
With the help of their father, Engr. Dominador Dayag,
a general contractor and real estate lessor, their mother
Engr. Criselda Alzaga, also a restaurateur and
entrepreneur, and their eldest sister Darlene Jayella
Dayag, a Sangguniang Bayan member in Aparri and broadcast
journalist, Dian and Dawn was able to conceptualize and
make their vision a reality – to share the hospitality and
to promote their Hometown Aparri, Cagayan. Their
experiences and expertise in industry provides Lodging,
Dining, and unwinding that features local, Asian and
Western Designs and Concepts.
Laxate Retia
Hotel Dian is a HOTEL, a RESTAURANT with CAFÉ and BAR,
a RESORT with POOLS and JACUZZI, and a MULTI-PURPOSE
FUNCTION HALL for CATERING and EVENTS.HOTEL DIAN. The
Biker-Friendly Hotel and Resort in Cagayan.
Although Hotel Dian is a high class hotel, they still
use the manual payroll system by using a computer through
Microsoft Excel. In this scenario, there are circumstances
wherein the payment of salary of the employees are delayed
due to errors and miscalculations. Also, using manual
payroll system is time consuming.
Importance of the Study
This study shall be expected to provide good effect
and beneficial to the following:
To the Hotel Dian. This study shall serve as a new
instrument for the technological advancement that greatly
benefits the Hotel Dian Aparri. This computerized system is
intended to lessen the manpower which will lead to a faster
and more accurate billing process of the Hotel Dian.
To the operational manager. Since the manager is in
charge to the payroll of the employees, the operational
Laxate Retia
manager shall benefit this study. The job of the manager
will more efficient and accurate through the use of the
proposed system.
To the employees. Through the use of this study, the
employees will immediately receive their salaries with less
delay since the system is already automated.
To the researchers. In this study it is a great
Achievements for the researchers because it shall improve
their skills in technical writing. The experience while
doing the research build up their characters and teach them
values like creativity, working hard, team building,
responsibility and time management.
To the future researchers. In this study it shall also
improve their skills in doing this system. They shall
improve the features of this study the Payroll system.
Statement of the Problem
This study aims to design and develop a Payroll
System of the Hotel Dian Aparri.
Specifically, the study attempts to answer the
following questions:
Laxate Retia
1. What are the existing process of Hotel Dian Aparri
along the area on payroll?
2. What are the issues and difficulties encountered by
the client along the area of payroll?
3. What are the system features of the proposed system?
Objectives of the Study
The purpose of this study is to design and
develop a payroll system for the Hotel Dian Aparri.
1. To identify the existing process of Hotel Dian Aparri
along the area of payroll.
2. To identify the issues and difficulties encountered by
the client along the area of payroll.
3. To develop the system features of the proposed study.
Definition of Terms
For the further understanding of the study, the
following terms will be used as follows:
Hotel Dian Aparri. The name of the company for the study
that the researchers would like to conduct.
Laxate Retia
Payroll. Use to pay their staffs or employees, and the
total amount of money has agreed to pay.
Researchers A group that trying to study or improve their
skills in doing the system.
System. Computerized things to make man’s life easier.
Laxate Retia

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Archdiocese of Tuguegarao PACUCOA LEVEL III ACCREDITED PROGRAMS:

LYCEUM OF APARRI Liberal Arts, Business Administration, Secondary Education

AUTOMATED PAYROLL SYSTEM

FOR HOTEL DIAN – APARRI, CAGAYAN

A Project Study Presented to

The Faculty of the Undergraduate Program

College of Information Technology and Computing Sciences

Christian Miramonte Rabal

Rendell Guevarra Figueroa

Marc Christian Garcia Quimma

Background of the study

In today’s world, we are living in an era wherein

technology governs. but still, a lot of companies are using

manual systems. Stagnant having a manual system can prove

useful, but as for a company in which efficiency and time

is a factor, a computerized system can operate with much

more ease and store or speed – up information.

Computerized systems are made by IT professionals to

provide easier ways to manipulate. Like automated payroll

system is just one of the many computerized systems that

aims to provide an easier way to manage and process

salaries, taxes, leave days and other employment – based

information relating to remuneration.

A related study of Amrit Kadam ( Aug 13, 2014) are

include the study entitled College 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 College, but also to provide

full functional reports to management of College with the

details about usage of leave facility & even deduction of

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, checks summary and

MIS reports. It is understood that we are tired of managing

thousands 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

your payroll system by developing a customized payroll

application that suits your specific requirements.

According to the researcher of Nyanmaru Computerized

Payroll System (2013) 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 encompassing every employee of a company

who receives a regular wages or other compensation due to

each. 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

It can generate numerous accounts and data accurately. A

Computerized Payroll System will not only provide accurate