Chapter 2 Reviews of Related Literature and Studies

Related Studies
Local Studies
According to Olivar (2012), Payroll System is heart of Human Resource System of an
Organization. The solution has to take care of calculation of the salary as per rules of the
Company, Income-Tax calculation and various deductions to be done from salary based on the
daily time record using the Biometric Attendance Record System including statutory
deductions like Income Tax and Provident Fund deductions. Another study, the main focus of the
system should handle employees records such as Employee List, Add New Employee, Edit New
Employee, Attendance, Bonus and Pay slip for the administrator. [1]
In relation with the system that the researchers are developing, they choose this study because it
is similar to the system they want to develop. A system that takes care of calculation of the salary
including the deductions and taxes. Also registration for new employees and updating employee
status records.
According to Macario & Escalante III (2013) the aim of general payroll system is to
provide easier and faster way to monitor the movement of salary in the business. It is a proper
way to get an exact salary of employee regarding their minimum income. From this documents
of payroll the salary will be illustrate the name of employee, the rate, the deductions for their
benefits, deduction from damages and cash advance, computing a gross and giving the amount of
net income. [2]

The proposed system is similar to this study because the researchers want to develop a payroll
system that provides easy access and faster way of monitoring the salary of the employees it will
also have the same entities for the database.
According to Annie Mae Vargas (2012), Payroll, at its most basic, is the process by which
an employer pays an employee for work performed. If you own your own business, but don't
have any employees, then you don't have to worry about payroll. But as soon as you hire your
first worker, you have a responsibility to pay that employee on time and the correct amount.
The researchers proposed system choose this study because payroll system is a simple process
that provides specific amount of salary that the employee will receive. It can help to keep track
of the salary of the employee by inserting or inputting it into the system.
Foreign Studies
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. The researchers choose this study because it
resembles our system.
The proponent system also shows the employee paycheck record for them view if they have any
question or reactions about their salary. Also each employee will have different paycheck records
to avoid unmanaged records.
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.
This study is resemblant to the proposed system since the payroll that we are making is
guaranteed easy to use and user friendly even though the user has little or no experience handling
computers.
Based on the system KPPayroll(2008), is a complete payroll solution in human resource
needs. It provides automatic calculation of CPF Contribution and other liabilities, while also
compiling and printing the IR8A and the CPF Payment Advice. Bank GIRO transfer features are
also included with the program. Below are some features for the KP Payroll system:
a. Easy navigation to all features of the program.
b. Multi-level password protection, plus built-in backup and restore.
c. Track personnel information including start and termination dates as well as salary reviews,
annual leave and sick time.
d. Tracks and automatically calculates statutory requirements such as CPF contributions,
Donations and SDF.
e. Supports multiple pay frequencies including daily, weekly, semi-monthly and monthly.
f. Calculates earnings, deductions and liabilities for all payroll frequencies.
g. Performs salary pro-ration.
h. Auto compute for no pay leave.

i. Handles unlimited earnings and deductions pay codes.

j. Generate vacation, sick, bonus or commission pay with or without generating regular pay.
k. Performs after-the-fact, irregular and nonstandard payrolls.
This study is can help the researchers to improve their learning based on the given features
above.
Related Literature
Local Literature
According to Manalaysay Stephanie in her article entitled Payroll System for Human
Resources Technology Incorporated stated that Payroll processes are the perfect place to begin
when looking to control costs. New developments in software, such as allowing the integration
of payroll system info into existing HR systems, mean you can look beyond traditional ERP
options.
In relation to the proposed system, this study is similar to us because the administrators can view
or lookup records of the employee. They can also improve their software because they have the
right to do so.
According to Lagod, Junald Astronomo in his article entitled Basic Payroll. Stated that
Any small business owner can tell you that paying employees involves a lot more than writing a
check every two week. There are dozens of laws governing employee compensation. If you dont
want to run afoul of various government agencies, you have to be well organized and stay up to
date on federal and state guideline.

The proposed system is alike this because there are step the you need to follow before you add a
new employee or update his/her status. And there are rules and instructions to follow regarding
that process.
According to Esteban, Gabriel in his article entitled The Accidental President stated
that Payroll systems are simple to use, easily affordable and compliant with all new tax laws.
These systems can be programmed to calculate taxes and deductions to your specific area. Most
systems have an internet database that can be accessed for updates to tax codes and changes in
the law.
Much alike to the proposed system this payroll system can also implement tax laws and calculate
deductions to a specific record.
Foreign Literature
According to Rooney and Hodgens in their blog entitled Payroll stated that The
manual payroll system means doing everything by hand, while a computerized one will enable
its users to store unlimited data, keeping track of everything. In a manual payroll system, you'd
have to keep track of all employees' time by hand. The computerized payroll system is payroll
software you can automatically transfer all punches or swipes directly into the system, which
will store them instantly. So instead of wasting valuable time with the tedious accounting tasks,
let the software calculate the paychecks, while you work on developing your business and
increasing production.
Like the proponent proposed system by using computerized system the users will be able to
easily view and edit their payroll because it is easier to keep track of their record and not waste
time and effort.

According to the book "System Documentation" 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.
Like the researchers proposed system it can also has the ability to update, add, and delete
records. But administrators only the right to do so.
According to Jim Symington in his blog Chiltern Business Computing states that
Every business needs its computer systems to be reliable. System crashes can waste huge
amounts of time and also carry the risk of data loss. This guide highlights some of the key factors
in making systems reliable. It is intended for smaller systems where stand-by equipment, cluster
servers or other more elaborate precautions are unrealistic. It is perfectly possible these days for
Windows-based computer systems to run with very high levels of reliability and minimum
unplanned downtime. Following the guidelines below will help you achieve the reliability that is
essential for your business to work efficiently. The factors influencing system reliability are
hardware, operating system, networks, application software, system intrusion and maintenance.
This project is similar to the proposed system because the researchers proposed a simple payroll
system that can be reliable in making payroll for the company. It is easy to use and user friendly.

References
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