PAYROLL MANAGEMENT SYSTEM

A Report for the Evaluation 3 of capstone Project 2

Submitted by

SUNNY CHAUDHARY

(1713104020)

in partial fulfilment for the award of the degree

of

BACHELOR OF COMPUTER APPLICATION

IN

SCHOOL OF COMPUTING SCIENCE AND ENGINEERING

Under the Supervision of

MS. KAMAKSHI GUPTA ASSISTANT PROFESSOR;

MAY- 2020
SCHOOL OF COMPUTING SCIENCE AND ENGINEERING

BONAFIDE CERTIFICATE

Certified that this project report “PAYROLL MANAGEMENT SYSTEM” is

Bonafide work of “SUNNY CHAUDHARY(1713104020)”who carried

project work under my supervision.

SIGNATURE OF HEAD SIGNATURE OF SUPERVISOR

Dr. MUNISH SHABARWAL, MS, KAMAKSHI GUPTA.,

PhD (Management), PhD (CS) Assistant Professor

Professor& Dean, School of Computing Science &

School of Computing Science & Engineering

Engineering
 Table of Contents
Title Page no
ABSTRACT………………………………………………………. iii
LIST OF TABLE………………………………………………… xvi
LIST OF FIGURES……………………………………………… xviii
LIST OF SYMBOLS……………………………………………. xxvii
1. Introduction………………………………………………………
1.1 Project Definition…………………………………………….. 10
1.2 Project Description……………………………………………. 10
1.3 Purpose………………………………………………………... 10
1.4 Scope………………………………………………………… 11
1.5 E-R Diagram………………………………………………… 12-13
1.6 DFD…………………………………………………………… 14-17
2. System Requirements Study…………………………………
2.1 User Characteristics…………………………………………… 18
2.2 Hardware and software Requirements………………………… 19
3. Class Modeling…………………………………………………..
3.1 Data dictionary for class……………………………………… 20-21
3.2 Class Diagram………………………………………………… 21-22
4. State Modeling…………………………………………………….
4.1 State Diagrams………………………………………………… 23-24
5. Interaction Modeling……………………………………………..
5.1 Use case Diagrams…………………………………………….. 25-26
5.2 Sequence Diagrams…………………………………………….. 27-30
5.3 Activity Diagram………………………………………………… 31-33
7. Component Diagram…………………………………………….. 36-40
9. Limitation and future Enhancement…………………………… 43-45

10.References………………………………………………………….. 46
ABSTRACT

"Payroll Management System” is one of the core areas of your business.

Usually, it is pursued to manage the employees the employee’s expenses,

Allowances, salary, Gross Salary, Deduction, Tax and many more for a specific
time period. Management and Accounting are two main essential parts for
payroll.
Payroll is an area in which you do not want to take any risk because it leads to
some financial and serious legal consequences. Payroll is a serious concerns for
every SME. It is mandatory for all business to pay every employees as per the
government rules and regulations.
Furthermore, this project will develop for company management and enhance
business in market and maintain the prestigious and reputation of the company.
Others, this project to facilitate company to handle all the legal process and

employee’s expenditure properly and systematically.

 TABLES

LIST OF TABLES
1. use case1-login
2. Use case2-register employee
3. Use case3-printing
4. Use case4-backup database

LIST OF FIGURES
1 .E-R diagram
2 Data Flow Diagram(DFD)
3 .Class diagram
4 State diagram
5 Use case diagram
6 Sequence diagram
7 Activity diagram
8 Component Diagram
 INTRODUCTION
1.1 PROJECT DEFINITION

A payroll system is software designed to organize all the tasks of employee

payment and the
filing of employee taxes. These tasks can include keeping track of hours,
calculating wages,
with holding taxes and deductions, printing and delivering checks and paying
employment taxes
to the government.
Payroll software often requires very little input from the employer. The
employer is required to
input employee wage information and hours—then the software calculates the
information and
performs withholdings automatically. Most payroll software is automatically
updated whenever a
tax law changes and will remind employers when to file various tax forms.

1.2 PROJECT DESCRIPTION

The Payroll Management System deals with the financial aspects of employee's
salary,
allowances, deductions, gross pay, net pay etc. and generation of pay-slips for a
specific period.
The outstanding benefit of Payroll Management System is its easy
implementation. Other
advantages of Payroll Management System are its extensive features and reports.

1.2 PURPOSE

Payroll Management System gives you the power to:

 Manage Employee Information Efficiently.
 Define the emoluments, deductions, leave etc.
 Generate Pay-Slip at the convenience of a mouse click.
 Generate and Manage the Payroll Processes according to the Salary
Structure assigned to the employee.
 Generate all the Reports related to employee, attendance/leave, payroll etc.
 Manage your own Security
It may be difficult to decide which system to choose, but there are some factors
keep in mind when deciding. First, analyse the size of your business and decide
While it is possible for smaller businesses to handle payroll duties in-house
through a
manual process, much time can be wasted while attempting to calculate
everything
correctly. One miscalculation and the business owner could find themselves in
legal
or financial trouble. Mid-sized companies with up to 100 employees benefit
greatly
by investing in a payroll system.

1.3 SCOPE

1.) Recurring payroll services:

 Gross pay calculation (basic salary, wage supplements, occasional payments,
cost
reimbursements, etc.).
 Calculation of payroll related taxes and contributions.
 Recording and processing of garnishments [NO SUCH WORD IN
ENGLISH
DO YOU MEAN DISBURSEMENTS] and other deductions.
 Preparation of payroll slips and other outputs broken down by employees or
by
cost centers for managerial and operational use.
 Data recording and processing in connection with voluntary pension and
health
insurance funds, reporting to the pension funds.
 Recording of wage and labor-related data (registration of personnel
information,
holiday and sick leave balances).
 Providing data and information for posting into the General Ledger.
 Data reports and certificates related to payroll processing (to the tax and social
security authorities, the Statistical Office, etc.).
 ADMIN

2.) Full range of Social Insurance management

3.) Tasks related to new comers and departing employees
4.) Annual services connected to payroll processing and social security
administration
5.) Preparation and submission of tax declarations
6.) Payroll disbursement services:
 Movement of all payments, calculated during the pay processing cycle (net
salary,
 TABLES

1. Log-In

This is the beginning of the process, where the users are required to log in to be
able for them to use it.

Table 1. Use Case 1 – Log In

Name Log In
Description The actors must log in to have an
account.
Desired Outcome The actors can view the whole content of
the payroll system.
Actors Admin, User
Precondition The actors must log in to view the whole
content of the system.
Scenarios  Log In
 View
 Done

Work Flow
Admin, User

Post Condition The number of users who used the

system will increase by one.
Business Rule Registered Users
Table 2. Use Case 2 – Register Employee

Register Employee

Name

Description The user will add new employee data in

the database.
Desired Outcome The admin will secure the personal data
of the employee.
Actors Admin
recondition Admin must click the register employee
button.
Scenarios  Click Employee Register button.
 Fill up the form.
 Save.

Work Flow
User, Employer, Admin

Post Condition The employee will increased by one.

Business Rule User must fill up all the information
needed by the form.
  Printing

This is the process where the system in the admin will print out the salary.

Table 3. Use Case 3 –Printing

Printing

Name

Description The system where print out the salary of

the employee.
Desired Outcome It will be automatically print out the
deduction of tax and etc of the
employee.
Actors Admin
Precondition User must check if the desktop time is
correct.
Scenarios  Click to view
 Input date, ID, status and time.
 Fill-up Form
 Save.

Work Flow
Admin

Post Condition Emoployees will have their daily time

 record.

Table 4. Use Case 4 – Backup database

Backup database

Name
Description The user will backup data to avoid data loss.
Desired Outcome The user will get a copy of the data base in his/her
desired file location.
Actors Admin
Precondition The user must choose where to put the database.
Scenarios  Click back-up database
 Browse for folder
 Click ok
 Done

Work Flow
Admin

Post Condition User must click Back-up database button.

Business Rule User must log in to the system.

1.5 E-R DIAGRAM:

An entity relationship diagram (ERD) shows the relationships of entity sets

stored in a database.
An entity in this context is a component of data. In other words, ER diagrams
illustrate the
logical structure of databases.
When documenting a system or process, looking at the system in multiple ways
increases the
understanding of that system. ERD diagrams are commonly used in conjunction
with a data flow
diagram to display the contents of a data store. They help us to visualize how
data is connected
in a general way, and are particularly useful for constructing a relational
database

Fig 1.1 diagram

1.6 DFD (DATA FLOW DIAGRAM)

A data flow diagram (DFD) illustrates how data is processed by a system in

terms of inputs and
outputs. As its name indicates its focus is on the flow of information, where data
comes from,
where it goes and how it gets stored.
DFD Layers: Draw data flow diagrams can be made in several nested layers. A
single
process node on a high level diagram can be expanded to show a more detailed
data flow
diagram. Draw the context diagram first, followed by various layers of data
flow diagrams.
DFD Levels: The first level DFD shows the main processes within the system.
Each of these
processes can be broken into further processes until you reach pseudo code.

DIAGRAM
DATA FLOW LEVEL 1 DIAGRAM

DFD(level2) diagram
 SYSTEM REQUIREMENT STUDY
2.1 USER CHARACTERISTICS:
 A payroll system that is computer driven offers to manage and automate the
functions of
payrolls systems in a particular organization. Before emergency of the computer
systems,
most organizations calculated the payroll manually.
 The use of the computer in payroll calculation has de it easier for the
management to
make and retain the information relating to payroll. Among the main
characteristics of
payroll systems, include the heightened security with regard to storage of
sensitive
company information and automatic calculations in employee payments.
 An organization’s payroll system ought to effectively accommodate all its
workers and
the hours worked by each in an accurate manner. In essence, a good pay roll
systems is
the once which ensures that the hours worked by each employee in the firm are
accurately kept. Although human is to err, an automated system minimizes the
potential
of such error as the only factor employed is the reporting and departure of these
employees.
 In the case when the time clock malfunctions or when certain employees
forget to go out
for lunch, the correction can easily be made by the administrator or the
accountant using
the payroll system. Therefore, the payroll system is the third party which could
effectively and accurately keep and record the hours for outsourcing the payroll
functions
2.2 SOFTWARE AND HARDWARE REQUIREMENTS:
SOFTWARE REQUIREMENTS:-

REQUIREMENTS ANALYSIS

Disk Drive: 1.44MB Floppy Disk Drive

Monitor : 1024

Windows Operating system

 Software requirement
Microsoft Visual Professional (2013)
Microsoft Visual Studio (2008)
Microsoft windows
MS –Access

HARDWARE SPECIFICATION

Processor : Intel Pentium or more

Motherboard : Intel
Chipset Motherboard.
Ram: 128 MB or more
Cache: 512 KB
Hard disk: 16 GB hard disk recommended
 3. CLASS MODELING

3.1 Definitions for Class Diagram:

 Administrator: This Class Contains the Information of administrator details.

 Attributes: Admin name, admin e-mail id.
 Employee: This class contains the information about the user background.
 Attributes: Name, Address, Email-id, Department Number and
Name
 User: This class contains information about the user (Employee).
 Attributes User Id, Password, and Login address
 Admin: This class handles and checks every details of the employee added or
removed. (Holds the main position when it comes in handling the data of
the
company and employee).
 Attributes: Add _emp, Dep_emp, Gen_Salaryslip and Edit_Emp.
 Department name: this class contains department information.
 Attributes: Department Id, Department name, Description.
 Add_emp:- requires the new emp_name, emp_id, department name,
gross salary and HRA.
 Final sheet: - Contains all details of the employees after being paid.(All
the updates are carried out and then entered in the final sheet of the
Company).
 User check: - Confirms the username and password when the employee
logins into the system. (Specially carried out by the admin Department of
the company).

 Category: contains information about the employee’s related (personal &
professional data).
 Attributes: department id, department id, position name, job description.
 Update-Sheet: - Contains emp_id, emp_name, no. of work days.
 Gen_Salary Sheet: - update the salary sheet after each transaction.
3.2 Class Diagram:

A class is a set of objects that share a common structure and

Common behavior (the same attributes, operations, relationships
and semantics) . A class is an abstraction o real-world items. When
these items exist in the real world they are instances of the class and
are referred to as objects the attribute and operation sections of the
class box can be suppressed to
Reduce detail in an overview. Suppressing a section makes no statement.
CLASS DIAGRAM
 4. STATE MODELING

Valuable technique for modelling behaviors that can be described in terms of:
States
Events

Transitions

STATE DIAGRAM
 5 .INTEREACTION MODELING

5.1 Use Case Diagrams:

The requirements of a system can be captured by Use Case Diagrams. They are
moded to capture the intended of the system. Use Cases interact with
human or actors that use the system to accomplish some work. They set of
sequence of actions that a system performs to yield an observable result of value
to an actor. An actor represents a role that a human, a hardware device or
another system plays with a system.

 Identify the actors that interact with the system.

 Organize actors according to their roles.
 Identify the primary ways in which an actor interacts with the system
elements.
 Organize these behaviors as use cases.
5.2: Sequence Diagram:

Sequence diagram describes an interaction by focusing on the sequence of

messages that are
Exchange , along with their corresponding occurrence specifications on the
lifelines.
SEQUENCE DIAGRAM (3)
5.3 Activity Diagrams:
An activity diagrams essentially a flowchart showing flow of flow of control
from activity to activity. We use activity diagram to model the diagram aspects
of a
system. For the most part this involves modelling the sequential (and possibly
concurrent) steps in a computational process. With an activity diagram, you can
also
model the flow of an object as move from state to state at a different points in
the flow of
control activity diagram may stand alone to visualize, specify, construct and
document
the dynamics of a society of objects, or they may be use to model the flow of
control of
an operation.
Basic Notations for Activity Diagram:

 Initial node: The filled in circle is the starting point of the diagram. An initial
node isn’t required although it does make it significantly easier to read the
diagram.
 Activity final node: The filled circle with a border is the ending point. An
activity
diagram can have zero or more activity final nodes.
 Activity: The rounded rectangles represent activities that occur.
 Flow/edge: The arrows on the diagram. Although there is a subtle difference
between flows and edges we have never seen a practical purpose for the
difference although we have no doubt one exists. We’ll use the term flow.
 Fork: A black bar with one flow going into it and several leaving it. This
denotes
Join: A black bar with several flows entering it and one leaving it. All flows
going
into the join must reach it before processing may continue. This denotes the end
of parallel processing.
 Condition: Text such as [Incorrect Form] on a flow, defining a guard which
must
evaluate to true in order to traverse the node.
 Decision: A diamond with one flow entering and several leaving. The flows
leaving include conditions although some modelers will not indicate the
conditions if it is obvious
Component Diagram
A component diagram describes the organization and wiring components in a
system. Component diagrams are often drawn to help model implementation
details and double
check that every aspect of the system's required functions is covered by planned
development. In
the first version of UML, components included in these diagrams documents,
database table, files, and all physical elements with a location. In the world of
UML
2, these components are less physical and more conceptual stand-alone design
elements such as a
Business process that provides or requires interfaces to interact with other
constructs in the
The physical elements described in UML 1, like files and documents, are now
referred to
as artifacts. A UML 2 component may contain multiple physical artifacts if they
naturally belong
together.
COMPONENT DIAGRAM
OUTPUT
1.REPORT GENERATION

2.EMPLOYEE LOAN
3.SALARY
4.PAYROLL MANAGEMENT SYSTEM SALARY

5.PAYROLL SALARY
6.PAYROLL SYSTEM USE CASE LOG IN
7.GENRATE PAYROLL
Literature/Studies

The proponents made a relative comparison of the studies and literature in

earlier sections of this chapter. As concluded, this proposal has based some of
its concepts from such documents. The proposed system uses master lists
coming from the Human Resource Department, yet the attendance relies on the
system itself.

Foreign studies

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 definition of Enterprise Resource planning on Wikipedia.com,

stated that "organizations perceive ERP as a vital tool for organizational
competition, as it integrates dispersed organizational systems and enables
flawless transactions and productions". This statement serves as basis of this
proposed systems capability and flexibility to integrate to other subsystems
within the airline system.

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.
Significance of the study

The PAYROLL SYSTEM within Surgiaodel Sur state University is primarily

focused on the staff and personnel’s salaries, taxations, etc. The system’s
processes accuracy and legitimacy.

 Employees 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.
 Accountant will able to manage employee services, hours, pay rates it
also includes elimination of time cards and unauthorized overtimes.
 Future researchers the proponents will gain knowledge about the system
existing inside the administrative office, with this; skills in the system
analysis will be improved and also it helps the future researcher to have
an idea about payroll system and develop their own system. They can
learn about the proponents system and at the same time develop a greater
system with the help of the proponent study.

Definition of terms

Basic Pay – This refers to monthly rate divided by the number of working days
multiplied by number of days worked.

Overtime hours – is the amount of time someone works beyond normal working
hours. Normal hours may be determined in several ways.

Database – This refers to a organized collection of data for one or more

purposes, it is usually digital form.

Deduction – This refers to business expenses or losses which are legally

permitted to be subtracted from the gross revenue of a firm in computing its
taxable income.

Employee – This refers to a person who is hired to provided services to

accompany on a regular basis in exchange for compensation.

Gross Pay – This refers to total of an employee`s regular remuneration

including allowances, overtime pay, commissions and bonuses, etc. before any
deductions are made.

Loan –This refers to funds transferred from one party to another as payment
purchased goods of services.
Net Pay – This refers to the remaining amount of an employee`s gross pay, after
deductions, such as taxes and retirement contributions, are made.

Payroll – This refers to a 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 during certain period of time

Payslip – This refers to a detailed breakdown on how much an employee is paid

during a specific period.

Salary – This refers to wages received on a regular basis, usually weekly bi-
weekly or monthly.
Limitations and Future Enhancements:

Accurate and correct payroll is very important to your employees and important
to you as a

business owner. Payroll is more than just sending out paychecks every two
weeks. You need to

comply with and make sure you pay all of the federal, state and local taxes that
are tied to having

employees. A payroll service will handle the details and keep you out of trouble
with the taxman;

however, such a service does have some drawbacks.

Advantages:

Control vs. Outsourcing:

The decision to use a payroll service could be a personal choice dictated by how
much

control you want to have over the different aspects of you company. If you keep
payroll in

house, it is easy to make changes and answer questions concerning the pay
information of

your employees. The decision to use a payroll service means giving up some
control of that

portion of your business. However, payroll is primarily a repetitive operation, so

letting
someone else handle the details can free up time for more productive tasks.

Costs:

A payroll services adds another cost to your budget. If you are a small business
with few

employees on a tight budget, paying for the service may not fit into the budget.
The cost of a

payroll service for a small business will be proportionately larger than for a
bigger business.

You need to compare the cost of the service to the time required to complete the
payroll in

house and what that time would be worth doing other work.

Access to Data

Using a payroll service means your employee pay data will be on some other
company's

computer system. This may be an issue if you need to make a change or if an

employee has a

problem with her paycheck. How much the fact that pay information is not kept
in your
business depends on how much access the service provides. You may want to
compare

services with this need in mind as wells comparing costs.

Compliance

Possibly the biggest benefit of using a payroll service is that the service will
keep your

business compliant with payroll tax laws and changes. While you are an expert
at your

business, unless your business is a CPA firm, you probably don't have the time
to become a system.

Disadvantages:

Manual:

The manual payroll system requires payroll processing to be by hand

Therefore, time card, wages and payroll tax computations; wage garnishments;
and voluntary

deductions are done manually. Furthermore, paychecks and pay stubs are
handwritten or

printed on a typewriter. The main disadvantage with this system is its high room
for error.

result in penalties from federal and state tax agencies.

Outsourced/External:
The employer uses the outsourced or external payroll system when it hires a
payroll service

provider. The latter has a payroll staff that, for a flat fee, processes its client’s
amp; risqué;

payroll. Services vary by provider, but most payroll service providers perform
paycheck and

direct deposit processing. Many also offer payroll tax and benefits
administration. Because

the employer is entrusting its payroll tasks to an off-site company, it can suffer
from not

having immediate help when needed. If the payroll service provider has many
clients, the

On-Site Computerized:

The in-house computerized system enables the employer to use an on-site

payroll staff and

payroll software to process its payroll. The employer must invest in and
maintain the

software, which can be expensive. Depending on the complexity of the

employer may have to pay for training for the payroll staff. Furthermore,
depending on the

size of the payroll, the employer may have to employ a full payroll staff.
SCOPE:

The System is designed for the enhancement or development of Computerized

Employees information, Delete Employees record, print / Save the Pay Slip of
each employee

and Updating Employees information as well as the Weekly Salary, Cash

advance, the rate per

day, overtime, Gross payment, Net pay, and Deduction such as withholding tax
and SSS, adding

up with a log-in log-out process for security purpose. Moreover, with help file
can be used by the

users to know how to use the payroll software.

 REFERENCES:

Steven M. Bragg. Essentials of Payroll: Management and

Accounting. ISBN 0-471-26496-2.

1. "Automated Salary Payment and Billing". Retrieved 2.5.2020. Check date

values in: |access

date= (help)

2. Jump up^ Grace, Natalie, Demand Media. "What are the Benefits of
Automating a Payroll System?".

Retrieved 2.5.2020. Check date values in: |access-date= (help)

3. Jump up^ "How Many Ways Can You Save Money With an Automated Time
& Attendance System?

in: |access-date= (help)

5. www.bulwarks.com/PDFS/Payroll%20Management%20System.pdf

6. www.employeesalarysoftware.com
7. www.xiphiastec.com/payroll.html

8. www.payrollsoftware.co.in/

9. www.navayugainfotech.com/payroll_management.html