System.docx

RIZAL TECHNOLOGICAL UNIVERSITYCollege of Engineering and Industrial Technology

CVC PRECISSION TOOLING’S INCORPORATEDEXPENDITURE SYSTEM – PAYROLL

A System Development Study Presented to theFaculty of Computer Department College of

Engineering and Industrial TechnologyRizal Technological University

Mandaluyong City

In Partial Fulfillment of the Requirements for the Degree ofBachelor of Science in Computer Engineering

By:

Kathleen C. ConsulAbby Trinidad B. ChingOliver Chan S. TuazonJoe Rizaldy M. Vergara


CHAPTER I

INTRODUCTION

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 encompasses 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 calculation and fast process of Payroll transaction but it will secure data through security implementation and accordingly arrange files provided by a well designed database that will produce a paperless

environment.

Statement of the Problems1. Time consuming process of Payroll PreparationThe CVC Precision Tooling’s Incorporated is still using the manual

method of payroll process. A lot of jobs are assigned to the payroll maker and accounting clerk, with cause’s inconvenience to their services. In this method, it will need more time and manpower to

complete the payroll of each employee.


2. Laborious payroll processNobody 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(Daily Time Record), 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 understanding of employee’s dataThe logical process of manual procedure result to too much time

consumption. It often times result in misposting and understanding of each employees data of plenty of files that is hard to accommodate.

Objectives of the StudyThis study is intended to design and develop a Computerized Payroll

System for CVC Precision Tooling’s Incorporated that is made this February 2015 and can be used by the company as long as they like.

Specifically, this study aims: To minimize the effort of the accounting department 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.

Significance of the StudyTo Accounting Department and Payroll Maker of CVC

Precision Tooling’s IncorporatedThe proposed system will help the accounting section of CVC

Precision Tooling’s Incorporated 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 ProponentsThis 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.


Background of the Organization

CVC Precision Toolings Inc. was founded in 1992 by Edgardo

Consul, Ernesto Consul and Celedonio Vasquez. CVC means “Consul

Vasquez Consul”. They start the operation with just one machine and

two employees. Their only costumer that time is just some small

company and it’s not enough to support the expenses of the CVC

Precision Toolings Inc. After several months they decided to hire a

sales man, but because their company is not well known and small

it’s hard to convince other company to order.

Edgardo, Ernesto and Celedonio are in the pinch to shut down

the CVC Precision Toolings Inc. because of lack of work. But they tried

their best to survive, they decided to low their price to convince other

to order, and it work. After that it became stable and they have to

hire another employee and buy one more machine.

The company began producing many different products to meet

their client demand. Ernesto Consul said that there are no such works

that can’t be done by CVC Precision Toolings Inc and every order of

the client must done well and meet the deadline so that the client will

be impressed and trust them in the future.

In 1995, because of their hard work and determination CVC

Precision Toolings Inc got its first large project that worth

1,000,000.00php. That’s the beginning of their career and they gain

more client.

CVC Precision Toolings Inc. bought car so that they can sale

their product in different place like in metro manila, cavite, laguna,

Pampanga, etc.


There are times that they don’t have work, and because of it

Celedonio Vasquez decided to sale his share to Edgardo Consul and

Ernesto Consul and left the company in year 2000. CVC now became

“Consul Via Consul”.

After Celedonio Vasquez left, Edgardo and Ernesto decide to

hire an accounting and other employee and buy new machine. Once

again they struggle but they didn’t let go and fight. The result of it is

they get their way to other big company like San Miguel, Panasonic,

Jollibee, PnG, etc.

In 2002, they celebrate their 10th year anniversary in infanta. It

became memorable and emotional. That is the day when they didn’t

have to think about work and just enjoy the moment.

CVC Precision Toolings Inc. continues to grow even though there

are hard times and no much work. CVC is not like other company the

president is like just an ordinary employee he go to their client and

look for a project he please other for work and sometime he is the

one who deliver the product personally. Now they have their own

building, 56 employees, 3 cars, and different kind of machines.

Sometimes CVC Precision Toolings operate 24hrs because there are

loads of works to do.


Organizational Chart


Importance of the Study

The payroll system that we were going to do will help Mrs. Mendoza (accounting) to save time because in CVC Precision Tooling’s Inc right

now they use a manual payroll, A manual system requires tracking employee time by hand and it takes a lot of time to finish all of it, but our payroll system has the ability to automatically transmit employee

entries from the timekeeping system into the payroll system and it can calculate the total hours worked and to be paid, thereby saving time spent on manual calculations. These systems calculate all pay frequencies, such as weekly, biweekly, semimonthly and monthly,

based upon the input data received. Our payroll system automatically calculates employee statutory deductions, such as taxes and wage garnishments, and voluntary deductions, such as medical benefits and other deduction that require in the company. She can simply

enter the data upon which the deductions are based, such as Form W-4 information for federal income tax withholding.

Mrs. Mendoza does a manual payroll system by using a typewriter or by hand to print the paycheck. But in our program it has direct-deposit capability, which saves money spent on live checks and

reconciliation.

Additionally, computerized printing of paychecks.Payroll system generates payroll reports that allow Mrs. Mendoza to double-check the payroll before printing paychecks. A computerized system enables hard-copy printing of payroll registers pertaining to

each pay period, and also saves the information in the system indefinitely.

Our system can help to ensure payroll tax compliance by generating tax reports, including quarterly and annual wage statements and

employee W-2 forms. These systems provide Mrs. Mendoza with the data necessary to handle the company’s payroll tax and

reconciliation duties and print the necessary reports. Furthermore, these systems track benefit days, such as vacation and personal time

that are taken and paid.


In manual payroll if Mrs. Mendoza is not careful she can make errors and it will takes too much of her time to check it again if her

computation is correct or wrong so we decided that the Payroll System that we were going to do will help Mrs. Mendoza to save time

and money and helping her to avoid some errors that she can normally done in manual payroll by mistake, it’s very important to avoid the errors in payroll because it is all about the money of the

company and by using the program it will lessen her work to double check the payroll manually.

We made our program easy to use by everyone because there is some event that When Mrs. Mendoza is not present in the company and they really need the payroll at that time, everyone in the office

can easily input the necessary data in the payroll system or view the payroll as a guest.

Chapter II – A


Forms

Form No. Name Description User1 CCTV-03 Select Login Everyone2 CCTV-03A System Administrator Everyone3 CCTV-03B Change Password Everyone4 CCTV0-03C Forgot Password Everyone5 CCTV05 Add Record Admin6 CCTV06 New Account Admin7 CCTV07 Search Record Admin8 CCTV08 Edit Record Admin9 CCTV09 Deactivate Record Admin10 CCTV12 Employee New Account Admin11 CCTV13 Change Password Admin12 CCTV14 Position Admin13 CCTV15 Add Position Admin14 CCTV15 Edit Position Admin

Figure A.1 List of FormsFigure A.1 shows the list of forms created by the proponents for the New Payroll System of CVC Precision Tooling’s Incorporated this will

guide the analyst in checking the new database.

Layout

Data Dictionary

Data Dictionary of Forms shows the analyst the list of input data that will appear in the New Database of CVC Precision Inc. This Data

dictionary will give a overview, and also guide the User in what they will see in running the database.

Table: UseraccountsData Description Type Length Constraints Sample Data


Username (PK)

Username/userID Alphanumeric 15 Joevergara

password password Alphanumeric 15 Vergaratype Type of account Alphanumeric 15 admin

Figure A.2 Data Dictionary of User AccountTable:Employee

Data Description Type Length Constraints Sample Data

EmpID (PK) Employee ID Numeric 5 12345EmpName Employee

NameAlphanumeric 20 Abby Ching

EmpAddress Employee Address

Alphanumeric 25 Baranka Mandaluyong City

EmpPhoneNo Employee Phone

Number

Numeric 11 0935-111-3432

EmpEmail Employee Email

Alphanumeric 15 [email protected]

Salary Description

Salary Description

Numeric 10 12,000

Deduction Description


Numeric 10 2,500

Salary Amount

Salary Amount

Numeric 5 12,000

Figure A.3 Data Dictionary of Employee

Table: Payments and DeductionsData Description Type Length Constraints Sample Data


(PK)


Numeric 10 2,500

EmpID Employee ID Numeric 5 12345Salary

AmountSalary Amount Numeric 5 12,000

Figure A.4 Data Dictionary of Payments and Deductions


Figure A.5 Data Dictionary of Accounting

Table: SalaryData Description Type Length Constraints Sample Data



Numeric 10 2,500

EmpID Employee ID Numeric 5 12345Salary

AmountSalary Amount Numeric 5 12,000

AccountingID Accounting ID Numeric 5 3241Salary

Description (PK)

Salary Description

Numeric 10 12,000

Figure A.6 Data Dictionary of Salary

Chapter II – B

Table:Accounting

Data Description Type Length Constraints Sample Data

AccountingID (PK)

Accounting ID Numeric 5 3241

EmpID Employee ID Numeric 5 12345

Salary Description

Salary Description

Numeric 10 12,000



Numeric 10 2,500


Reports

Chapter II - C

Entity-Relationship Diagram


Entity Relationship Diagram is a major data modeling tool that will help the proponents organize the data into entities and define the

relationships of the Existing System of CVC Precision Tooling’s Inc by means of the Finalized Entity-Relationship Diagram and Normalized

Form.

Figure C.1 Entity Relationship Diagram

Normalized Form


Figure C.2 Normalized Form

Business Rules

CVC Precision Tooling’s Inc. recognizes its moral and legal responsibilities under Occupational Health and Safety (OH&S)

legislation to provide a safe and healthy work environment. This commitment means that we will:


Provide a safe and healthy workplace and working conditions for all, including employees, contractors, customers and visitors.

Provide training to enable all employees to work safely. Comply with all relevant legislation and industry standards. Provide support and assistance to employees. Consult with staff and contractors where relevant to enhance

the effectiveness of procedures. Provide adequate resources to aid employees in fulfilling their

responsibilities. Conduct investigations into all reported incidents. Ensure that appropriate returns to work programs are in place. Conduct regular reviews and evaluations of the health and

safety system in place.

What employees are expected to do? While at work, all employees – irrespective of their position – will:

Take reasonable care to ensure good health and safety procedures are implemented at all times.

Identify and support measures to eliminate or minimize unsafe conditions.

Assume personal responsibilities for their own safety and for those of other work colleagues by always operating in a safe and appropriate manner.

Concept of Operation

In a company, payroll is the sum of all financial records of salaries for an employee, wages, bonuses and deductions. In accounting, payroll

refers to the amount paid to employees for services they provided

http://en.wikipedia.org/wiki/Tax_deduction

http://en.wikipedia.org/wiki/Wage

http://en.wikipedia.org/wiki/Salary

http://en.wikipedia.org/wiki/Financial

http://en.wikipedia.org/wiki/Company


during a certain period of time. Payroll plays a major role in a company for several reasons.

From an accounting perspective, payroll is crucial because payroll and payroll taxes considerably affect the net income of most

companies and they are subject to laws and regulations. The primary mission of the payroll department is to ensure that all employees are

paid accurately and timely with the correct withholdings and deductions, and to ensure the withholdings and deductions are remitted in a timely manner. This includes salary payments, tax

withholdings, and deductions from a paycheck.

Computerized payroll systems offer several advantages than manual. These programs allow managers to see the company's financial

position in "real-time" and make adjustments to the business strategy as needed. Computerized systems can also provide instant reports on stock evaluation, profit and loss, customer accounts and payroll and

sales analysis, again, allowing faster adjustments in business strategy. In addition, transactions need to be input only once, and,

with some training, anyone in the company can handle the inputting.

Using a computerized payroll system can save you time. Payroll software allows faster data entry than manual payroll, and allows documents such as invoices, purchase orders and payroll to be

collated and printed quickly and accurately. Because of its efficiency and ease of use, computerized payroll systems also allow you to

improve inventory control and payment collection, saving time and improving cash flow. Because computerized systems update some

records automatically, your account records will always be up to date, saving time in updating.

Advantage of Using our Payroll SystemEasy calculations. Efficiency in payroll calculation is important in every company. It requires accuracy to pay employees the right

amount of money they have earned. To avoid the hassles of calculating payroll manually, you can use software to automate the process. The process is productive and effective in saving time and

http://en.wikipedia.org/wiki/Paycheck


money. Your accounting department can create reports and financial documentation easily.

Forecasting. When you have payroll software, it allows you to see and monitor all payroll expenses instantly. This helps you graph financial

data to help you create a forecast. If you have an idea of your business performance, it will be easier to decide when you need to

hire new staff for the company. You can make adjustments and calculate salary increases to help you make an assessment on how it will affect your money. It is easier to know whether your decision is

good for the business.Tax management - Computations for tax might be a headache. Using

a payroll system will minimize the stress related to employee reporting obligations. You need not to look for piles of pay-slips to see

the records for tax payments. Through an automated payroll, all records are kept in the computer. These data are easy to collect and pull-out from the system to provide you with accurate tax records. Avoid the errors of manual tax computation of salaries by using an

automatic payroll system.Reliable backup - As a business, keeping large amounts of data for payroll can be challenging. You can’t store piles of papers and data

manually. But when you are using payroll software, it is convenient to save records in databases. In case your computer or system is

destroyed, you should still have a backup to get all your records back.Less training needed - You don’t have to hire someone who is really good in payroll because everyone in the company can input some

data in the program.Security and Confidentiality - No chance to confidential papers or pay

slips lying around. Sensitive information is protected by others. Backups guaranteed.

How to Process Payroll using the program

- Gather employee wage information. Make sure it includes all wages, tips and compensation in the pay period.


- Check to ensure that you have W-4 information for each employee to determine their marital status and withholdings. This will determine their tax liability for Federal Income Tax.- Calculate employee's gross pay from employment agreement or time sheet. Include tips, commission and overtime, if applicable.- Determine withholding amount for Federal Income Tax.- Calculate employee amounts for Social Security Taxes.- Calculate employee contributions for Medicare Tax.- Deduct additional employee items such as retirement and savings plans, health insurance, charitable contributions or garnishments.- Process payroll through your system.- Print the pay slip. Data Flow Diagram

Data Flow Diagram is a representation of the processes in a system. In this study, the proponents represent the processes of the new

system of CVC Precision Tooling’s Inc. by means of the Context Data Flow Diagram.

Figure C.3 Context DiagramFigure B.3 shows the Context Data Flow Diagram of the New System.

This defines the roles of the Employees and the Accounting Department.

Chapter III

Prototype Database System


Use Case DiagramUse Case Diagram discusses the representation of the New System’s entities and processes through a Use Case Diagram and Detailed Use

Case Diagram.

Figure 3.1 System Use Case Diagram Figure 3.1 shows the New System Use Case Diagram. It represents the task done by the administrator and the User such as Daily Time

Record, Employee Data, Salary Cash and General Payroll Report.

Daily Time Record

Employee Data

Salary Cash

General Payroll Report

Daily Time Record

View and Update Employee’s Data

View and Update Salary Cash

View DTR of Employee


Figure 3.2 System Detailed Use Case DiagramFigure 3.2 shows a detailed representation of the functions of every use cases. The administrator can view and update Employee’s Data,

Salary Cash, DTR of Employee, and Generate Reports.

Screen InventoryForm No. Name Description User

1 CCTV-03 Select Login Everyone2 CCTV-03A System Administrator Everyone3 CCTV-03B Change Password Everyone4 CCTV0-03C Forgot Password Everyone5 CCTV05 Add Record Admin6 CCTV06 New Account Admin7 CCTV07 Search Record Admin8 CCTV08 Edit Record Admin9 CCTV09 Deactivate Record Admin10 CCTV12 Employee New Account Admin11 CCTV13 Change Password Admin12 CCTV14 Position Admin13 CCTV15 Add Position Admin14 CCTV15 Edit Position Admin

Figure 3.3 Screen Inventory

Screen Transition Diagram

View DTR of Employee

Log-In

Forgot PasswordSystem Administrator

Change Password

Add Record New Account Search Record

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