Payroll Notification System

INTRODUCTION

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.

On the other hand, through the innovation of the technology, there are many things that has been developed, discovered and improved by human minds. Mobile phones are one of the technologies which have a rapid development in today’s generation.

The fast rising and growth of this technology makes it more useful to the users because of the new advance features that can use for sending messages, information gathering and also for personal management. Moreover, this kind of technology can be more useful in the field of payroll system by utilizing this.

1.1 Project Context

This project will be based from the accounting department of RAK & ACO Manpower Agency of South Osmenia Street, General Santos City. The accounting department of the company processes the entire employee information regarding to their payroll and also for the reports for their employees.

The accounting department of the company has an important role during payroll period, they prepared for the payroll transactions and distribution of pay slip for their employees that can cause a lot of paper works. The accounting department also helps the company to make sure the payments and pay slip of the employee will be made in period of time.

Accounting department of RAK & ACO Manpower agency is having a problem on making a preparation for the payroll transaction and salary computation for their employees. They have to spend more time in making the payroll slip, reports and other payroll transactions. This happened because of the agency’s manual processing of payroll.

Since the present payroll system of the agency is time consuming, more manpower required, and the calculation of salaries need to be double checked, there is a need that the current system to be replaced with an automated payroll system. The conducted research aim to solve the problem encountered to ease the employees and staffs burden by developing an automated payroll system and utilizing the SMS – based feature of mobile technologies.

1.2 Purpose and Description

The main goal of this research is to create a system that will solve the current problem encountered in payroll processing in the Accounting Department of RAK & ACO Manpower agency. Based o the existing payroll system of the agency, the research creates a system that can automate a payroll process for the company and at the same time, a system that can send a pay slip form with a total computation of salary for their employees via SMS.

The research’s system gives usefulness and significance to the whole process of payroll to the employee, and to the company’s payroll staffs and at the same time, also to the company. The research system will create a faster process of transaction that will lessen the stress and burden of both parties. Aside from that, the employee will be properly updated and automatically notified regarding of their pay slip in period of time.

1.3 Objectives
The main goal of this study is to develop a Payroll Notification System via SMS. Specifically this study would like to:
generate a automated payroll process for the company.
generate a pay slip information of employee.
Provide Payroll summary information of employee via SMS.

1.4 Scope and Limitations

The research study conducted is intended only for RAK & ACO Manpower agency. The system is intended only for generating a payroll for the company and generating employee’s pay slip form and It can send payroll summary information reports via SMS to the employee in every payroll date after the system computed and process the payroll of the company.

The employee will automatically notified and receive his/her pay slip in an abbreviated form of text. This is happen because of SMS feature limitation that cannot create a text more than 160 characters in one send. The whole payroll activity of the Agency will be covered by the system, and will provide payroll summary Data particularly in the accounting department of the agency,

Chapter 2
REVIEW OF RELATED LITERATURE

Payroll system from past up to the present time has same purpose and goal, especially in dealing with the salary computation of a certain company’s employees. In recent years, companies and different institution have been using computerized system for their different business activities and this computerization involves computer hardware and software applications that help the company achieve specific goals, and these goals often falls into two categories, to increase worker productivity and improve record keeping capability (Williams,1997).

In addition, one of the more complex activities for companies falls to financial services like creating payroll. Related to this activity is keeping track of payrolls throughout the business cycles. Concerning in improving record keeping capability, companies and institutions have developed computer systems that does not only record information, but also provide facilities to report those information to employees in a variety of ways (Williams,1997).

Applying a SMS based payroll system in a company or other institutions will take a lot of things to consider. Many researchers had already conducted their studies regarding on how to automate the payroll transaction and how SMS be applied to make the distribution of payroll details be more easier and more faster. SMS based payroll system has the capability that can automate the distribution of payroll details of calculation to the employees and in paperless manner. It will be a useful tool to use for all business transaction like payroll processes that would be fasten the transaction and lessen the burden of personnel and staffs in a company or institutions (Furstenberg & Patterson,2008).

Using the advance technology and mobile communication technology, the web application for managing payroll transaction has been more useful on a personal computer or internet capable device such as cellular phone (Daughtery,2009). Nowadays, Cellular phones are very useful in businesses and an another faster and easier way of sending information.

A study shows that mobile technologies and email processing is very useful on any business transactions (Jones, 2005). The research’s system will be able to apply the use of Mobile phones and involve it in payroll process, the employee will be able to receive payroll notifications including the payroll details via SMS which is easier for the staffs and more paperless.

In addition, the increasing penetration of mobile phones and the increased usage of mobile messaging such as short messaging service (SMS) have combined to make cell phone and other mobile communicating with employees in an efficient manner (Schauer,2008).

Therefore the research conclude that applying the use of Mobile phones in payroll process particularly in distributing payroll details to the company’s employees will be considered as an effective manner for the whole system operation, provided that the payroll personnel had double checked and reviewed the details before pushing it to the employee’s mobile phones to avoid conflicts and confusions.

Chapter 4
DESIGN AND METHODOLOGY

This study consists of the step by step process in developing the system. In solving the problem, the researcher establish three phases that must be completed for any system development project- problem seeking, information gathering, system design and constructing the system.

Information Gathering
The researcher had conducted interviews with the company of RAK & ACO Manpower Agency and was able to gather important details regarding the payroll process of the company.

Problem Seeking
The researcher seeks the problem of the organization and seeking the areas that need to be improved to determine the purpose of the system. In this research, the payroll system of the company was the main focus of the study.

System Design
After all the needed information that has been gathered, the system’s design will be based from the gathered information, and the problem that had been found. The researcher was able to create Diagrams and choose an algorithm that makes the understanding of the whole system be understood.

Constructing the System
The gathered information and the designed system are put together to build the system software. This consists of writing codes and constructing the design. The researcher will construct the system according to the algorithm that fits the system and according to the proposed improved system.