Chapter II Review of Related Studies and Literature Computers nowadays are widely used in every transaction processes.

Computerizationmakes it easy for a company to do their internal and external transactions. Payroll and Financial monitoring system is one of the many transactions that are being worked on computer. The proponents worked on a custom-made payroll and financial system done for the specific need of the company. The proponents searched on related literature that would aid in developing an effective payroll system as one of the research processes followed. The related literatures are as follow.

Related Studies These are investigation that are unpublished materials like thesis, manuscript and dissertations that are conducted before to which the present study has similarity. Local Studies 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 designing and creating thesystem. This was designed to meet the requirements of the company for a better and moreenhanced 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

the basic pay of each employee. Contributions like PAG-IBIG, Philhealth, withholding taxes were also included in computing the payroll. The main objective of the proposed system was to develop a system in a more accurate efficient and secured data. The proponents would like to help the management and accountant for well-organized and efficient payroll. The proponents found out that computerization of the payroll process of all payrolltransactions in the company including the maintenance module are feasible. The related studies about AHNEX Builders payroll showed a common problem. They use Microsoft Excel in computing net pay that makes the computations time consuming. The proponents are to design a system that generates report, keeps track of files and information, and computes employeesmonthly salary. The proposed system includes the deductions of withholding tax and GSIS contributions/remittances. JBC Engineering specialists Payroll System A. Reyes, 2000,JBC Engineering specialists Payroll System was created by the proponents in order for the company to have a better way in computing their payroll. The proponents were able tomodernize their system by computerizing their manual tasks such as record keeping and computing their payroll. A database was added to the system so that the company would not have to rely on papers to store valuable information about an employee. The database system interfaces with an operating system to set-up, update and retrieve data items from a database organized as single logical and physical unit. This also helps them track of the progress of anemployee. Another advantage of the new payroll system is in generating the payroll slips, whichis printed out by the computer. The payroll slip contains all the information on how the

computation arrives on the Net Pay amount an employee receives. The system also boasts of security maintenance so that only limited people are given access to the files. The proponents main objective in developing the system is to make the companys current manual system better and more efficient with the use of computer. The proponents created a computerized payroll system that will add a database into thesystem which is likely the same as with JBC Engineering specialists Payroll System. The system lessens the use of paper outputs and paper filings. The proponents created a database the can easily be selected, inserted, updated and deleted, so maintaining their system will be a breeze. They added a print friendly reports generated through the system like pay slip for example. Included in the system is the security module that gives access to the priority user of the system and that a certain user will have featured designated to him/her. Network Based Payroll for Citimotors Las Pias L. Gawaran, 2007, the current payroll system of Citimotors Las Pias is prepared manually. Noticeably, it has an array of disadvantages. That is why a Network-Based payroll system for the CitimotorsLas Pias was proposed to facilitate fast and easy preparation of its payroll. The proponents made sure that the system would be user friendly. It assures that its features and functions are simple hence, easy to understand. But it boasts of security maintenance that ensures limited and regulated accessibility. Furthermore, the proponents objective is to make the companys current system more efficient with the aid of the computer technology. The proponents developed a system that is a network based payroll system that willlink/network 3 offices that handle the whole payroll processes namely the HRMO, Treasury Office, and the Accounting Office so that it will be easy for the 3 offices to

transfer information and files. In comparison with the system done by J. Gawaran, the proposed system is a networkbased feature and its design is developed with userfriendly interfaces and has all the features that meet the specific need of the company. Accessing the system will be easy to give an efficient help. Dasmarias Municipality Payroll System L. Lardizabal , 2006, The Dasmarias Municipality Payroll System (DMPS) was designed to address the existing inefficiency and inaccuracy of its present system. There are problems encountered like loss of files and data, slow process of salary computation, difficulty in retrieving and maintaining of records, vulnerability of the data to be lost or misused, and overall security of the payroll process. The main objective of the DMPS was to provide the municipality with a more convenient and more reliable system of recording, storing, and retrieval of data needed to efficiently run the payroll of the employees correctly and accurately. The advantage of the system is to set up, update and retrieve data items from organized database. Another advantage of the new payroll system is generating the payroll report slips and other forms included in the system, which will be printed out by the computer. The system also boasts of security maintenance so that authorized people will only be given access to the files. The language usedin making the system was Visual Basic 6.0. The proponents made sure that the system would be user-friendly, making the municipalitys current system better and more efficient with the use of the computer. The proponents study focuses on Noveleta Municipality payroll system. In comparison with Dasmarias Municipality Payroll system, the system created was from manual tocomputerized system. The proponents created a reliable, secured and convenient payroll system

from a manual system for a government office need to have this kind of system so that they can give additional focus on more important activities to be transacted. The system created by Lardizabal shows common problems with the proposed system that are normally experienced from a manual system such as loss of files and data, slow process of salary computation and difficulty in retrieving and maintaining records, vulnerability of the data to be lost or misused, and overall security of the payroll process. Security is a main function because the information in the system should be kept in its confidentiality. Foreign Literature

Biometric Time Management & Payroll Software http://www.timetrax.com.pk/#, 2007, TimeTrax is a comprehensive, integrated yet easy to use employee's Time ManagementSoftwareSuite that enables employees to record their arrival and departure providing managerswith detailed information about attendance records, absenteeism, overtime etc. Each individual'sarrival and departure time is recorded automatically via input devices such as Card Readers,Biometric devices or keyboard, depending upon environment and working practices.

Followingare some of the advanced features that TimeTrax has to offer: Hand geometry, Fingerprint, RFIDand Magnetic swipe card devices integration. Centralized payroll processing is for multiplebranches. Track employee attendance from any location, anytime, even from the convenience ofyour home. Overtime, late arrivals & early departure reports, automatic calculation of hours,leaves, taxes and deductions to generate payroll, shift scheduling & rule based penalties are thefeatures included.

Spine Payroll (ver9.4.0) Payroll Management Software http://www.spinetechnologies.com/products/payrollindex.htm, 2004, Spine Payroll is very simple, flexible and user-friendly Payroll Management softwareespecially for INDIA that takes care of all the requirements relating to accounting andmanagement of employees payroll. Spine Payroll stores complete records of the employees, generates Pay-slips and Attendance Register, computes all allowances and deductions andgenerates all Statutory and MIS reports. Spine Payroll is only salary processing software withgood no and wide-industry range of client based in Mumbai, INDIA. It offers very highflexibility in defining various allowances, deductions, leave rules etc. for the employees and allformula for P.F, PF TRUST., F.P.F., E.S.I.C., Profession Tax, Income Tax, etc. are definable andchangeable at User's end. The proponents had an idea in the computerization of the payroll. After analysing SpinePayroll, they considered adding complete records of the employees, generating Pay-slips, computing all allowances and deductions, and generating all reports. Sure Payroll http://www.surepayroll.com/default.asp, 2000, SurePayroll is the best way to eliminate payroll worries. Do you have between 1 and 100employees? Let us prove our passion for payroll to you! Add your payroll to the more than30,000 we process each month. Payroll systems have changed for the better. With online payrollsystems, like SurePayroll, you can log on to our payroll system anytime, anywhere and you'll bedone with payroll in minutes. If you'd prefer to focus on growing your small business rather thanon the tedious tasks of payroll, consider outsourcing payroll to SurePayroll's online service. Asthe nation's leading supplier of online payroll services, we can help you save time, save moneyand stay in control of your payroll. Simple,

Convenient, Smart. SurePayroll is the national leaderin online payroll processing. We focus exclusively on small business payroll solutions, and weprovide a SIMPLE, CONVENIENT and SMART way to process payroll and file taxes. This system has a commonality with the proponents proposed system in storingemployees record and ways in processing payroll and deductions. The system also generatesPay slip and attendance Register. The proponents focused on simple and convenient process ofcomputing deduction such as taxes and more. Agile Payroll Systems http://www.agilepayroll.com/products.html, 2007, We are building the finest payroll system using state-of-the-art, proven Microsofttechnologies. The Agile Payroll System will change your business, helping you to provide thehighest level of customer service. Let's face it; there are more than a few payroll systems in themarket already. But few were built to address your business needs for scale, efficiency andreliability. We are building our products using the agile software development process that putsboth clients and testing, front and center in the development process. Our system design anddevelopment are client and test driven to ensure that the resulting applications are flexible, meetour clients' requirements and are of the highest quality. Here are some of theadvantages we offer: An interface designed by users, efficiency in design that allows you to bemore effective in your business, developed in, and for Microsoft's latest .Net technologies,reliable, scalable and secure Microsoft SQL database systems, the highest level of quality basedon multi-level testing, a team with years of payroll operations, support and developmentexperience and we work with you, as partners to help you succeed. Agile Payroll Systems has similarity with the proposed system in terms of its features.The proponents created an effective design for business thatis developed in

Microsoft SQL database that will address efficiency and reliability. This will be convenient for employee to view their salary particulars including from gross pay, net pay and deductions. Related Literature