DESIGN AND IMPLEMENTATION OF A COMPUTERIZED PAYROLL SYSTEM
A CASE STUDY OF EKET LOCAL GOVERNMENT - DESIGN AND IMPLEMENTATION OF A COMPUTERIZED PAYROLL SYSTEM
1.1 BACKGROUND OF THE STUDY
A payroll is a company’s list or records of its employees, which is often used to refer to the total amount of money that a company pays to its employees, which is often refers to the total amount of money that a company pays to its employees.
A payroll system is software which organizes and arranges all the tasks of employee payment and the filing of employee taxes. These tasks may include keeping tracking of hours, calculating wages, withholding taxes and deductions, printing and delivering checks and paying employment taxes to the government. Payroll software play several roles for the user, the employees and the company such as giving you supper easy ways to manage employee calendar e.g. sick leave, absences and overtime) gives you latest tax updates you when by notifying you when the updates arrives allows you to quickly and easily generate pays lips for all your employees, serves as a reminder. Payroll also makes deductions from employees’ wages for taxes, health and life insurance, spending accounts and retirement investment.
Payroll works with your accounting department to ensure that wage deductions and other payroll expenses are paid and properly reported.
1.2 STATEMENT OF PROBLEM
Manual system of payroll always put pressure on people to be correct in all aspect of their work with manual systems the level of service is dependent on individuals and this puts a requirement on management to run training continuously for staff to keep them motivated and to ensure they are following the correct procedures. It can be all too easy to accidentally switch details and end up with inconsistency in data entry or in hand written orders. This has the effect of not just causing problems with customer service but also making information unable be used for reporting or finding trends with data discovery. Reporting and checking that data is also a problem and can be time consuming and expensive.
Other problems caused by the manual payroll system are inconsistency in data entry, and give room for errors.
It also result in sharing information and customer services, time consuming and costly to produce report, lack of security of data, duplication of data entry.
1.3 OBJECTIVES OF STUDY
1. The objectives of this study are to design and implementation of a computerized payroll system for an organization.
2. To compare the workability of the computerized payroll system with the manual system
1.4 PURPOSE OF THE STUDY
With the following purposes;
1. To design a computerized payroll system that will enhance the ability to calculate large volume of data faster.
2. To design a computerized system that will create more security to both the employee and the company’s data
3. A computer payroll system is to design to evacuate the manual payroll system at (Eket local government) which is prone to error and time wasted
4. To design a computerized system that will eliminate inefficient in managing of payroll at (Eket local government).
1.5 SIGNIFICANCE OF THE STUDY
The study will aid in reducing error fraud, increase speed and also aid growth in organization if successfully implemented. Manual payroll system in organizations will be totally eliminated with this computerized system in place.
The study will also serve as a guide to other student research who may want to conduct further research on the subject matter. Findings and recommendations from this system will aid in developing newer version to serve optimally.
1.6 SCOPE / LIMITATION OF THE STUDY
The scope of this study is centered on the design and implementation of a payroll system.
a. Financial constraint – insufficient fund tends to obstruct the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet questionnaire and interview)
b. Time constraint: the researcher will at the same time engage in this study with other academic work. This consequently will cut down on the time devoted for the research work
1.7 DEFINITION OF TERMS
A payroll is a company`s list or records of its employees, which is often used to refers to the total amount of money that a company pay.
Payroll system is software which organizes and arranges all the tasks of employee payment and the filling of employee taxes.
Pay slips: A note given to any employee when they have been paid, detailing the amount of pay given, the tax and insurance deducted.
Employer: A person or organization that employs people.
Employee: A person employ for wages.
W-4 from: Tells the employer the correct amount of tax to withhold from an employee’s pay check.