SHP 3423 HUMAN RESOURCES INFORMATION SYSTEM

SEMESTER II SESSION 2010/2011

TOPIC: PAYROLL SYSTEM

GROUP MEMBERS NAMES AND MATRIX NO:

1. MOHD NASRUN FISDAUS BIN AZMI SX085778HRD04

2. OTHMAN BIN MOHD SAID SX091141HRJ04

3. NORMALA BINTI ABU HASSAN SX091061HRJ04

4. MOHD SYAIFULLAH BIN JAMALUDIN SX091117HRJ04

5. ZURATUL JANNAH BINTI ZUHAIRON SX091163HRJ04

6. SHARIL IZWAN BIN LEMAN SX091145HRJ04

7. RUWAIDIYYAH BINTI MD. NOR SX091143HRJ04

Student
Item Full Marks Comments
Marks
Introduction

Components and Functional Area

Activities summary

Clarify of information

Format

Implications

Presentation

Total

Lecture Signature:

Date:

Overalls Remarks:
HUMAN RESOURCES INFORMATION SYSTEM

-PAYROLL SYSTEM-

PREPARED FOR: DR. NUR NAHA BT ABU MANSOR

SEMESTER II ACADEMIC SESSION 2010/2011

SHS3423 HUMAN RESOURCES INFORMATION SYSTEM

FACULTY OF MANAGEMENT & HUMAN RESOURCE DEVELOPMENT

UNIVERSITI TEKNOLOGI MALAYSIA

APRIL 2011
DEDICATION

This Assignment Is From Our Group Paper Work

Especially Dedicated To Dr. Nur Naha Abu Mansor

Human Resources Information System

UTMspace
 APPRECIATION

Assalamualaikum w.b.t.

Praise to Allah S.W.T in finally, we have finished completed this group assignment with

executed smoothly.

Special appreciation to Dr. Nur Naha Bte Abu Mansor as lecturer for this course SHS3423

Human Resource Information System for helping us with the guidance and consults how to

complete this assignment in perfect way.

Thank you to all the parties involved either directly or indirectly in the preparation of the

report which was carried out. Contribute ideas and reference materials are very helpful

in producing a good paper work and properly report.

Thanks to classmates for their support and assistance

Salam 1 Malaysia

Best Regard
 GROUP MEMBERS PARTICULAR

TEAMWORK GROUP MEMBERS

FROM LEFT NASRUN, ZURA, NORMALA, DIYA, OTHMAN & SYAIFUL

NO. NAME MATRIX NO.

1. MOHD NASRUN FIRDAUS BIN AZMI SX085778HRD04

2. HJ. OTHMAN BIN MOHD SAID SX091141HRJ04

3. NORMALA BTE ABU HASSAN SX091061HRJ04

4. MUHAMMAD SYAIFULLAH BIN JAMALUDIN SX091117HRJ04

5. RUWAIDIYYAH BTE MD. NOR SX091143HRJ04

6. ZURATUL JANNAH BTE ZUHAIRON SX091163HRJ04

7. SHARIL IZWAN BIN LEMAN SX091145HRJ04

 ABSTRACT

Payroll system is a very important and it need to be addressed by the organization.

Through the efficient payroll system, the organization can serve the wage plans by hours or

monthly, incentive plans, deduction of tax, loan or zakat and etc. With the application

of payroll systems the organization will be able to effectively manage the human resource

needs very well. In recent of years the managing cost payment of salaries and

allowances have been increased. The management of organization need to accept the changes

of technology by using Human Resource Information System to facilitate the administration

of human resource management within the organization. This paper work will explain how to

implementing the payroll system, what the payroll system benefits and implications the

payroll system to the management.

 CONTENTS IN BRIEF

TOPICS PAGES

DEDICATION

APPRECIATION

GROUP MEMBERS PARTICULAR

ABSTRACT

CONTENT IN BRIEF

CHAPTER 1 PRELIMINARY

1.1 Introductions

1.2 Payroll System Definition

1.3 Payroll System Benefits

1.3.1 Cost Effective

1.3.2 Flexible

1.3.3 Accurate

1.3.4 Data Security

1.3.5 Increase Productivity

1.3.6 Easily Accessible

CHAPTER 2 PAYROLL SYSTEM

2.1 Implementing The Payroll System

2.2 Advantages

2.2.1 Allows Timekeeping

2.2.2 Enables Payroll Processing

2.2.3 Coordinates Departments

2.2.4 Meets Compliance Criteria

2.3 Disadvantages

2.3.1 In-House Computerized System

2.3.2 Out Of Office

2.3.3 Internet Provider Down

2.3.4 Retraining Employees

2.3.3 Possible Set up Costs

2.4 Payroll System Management

CHAPTER 3 PAYROLL SYSTEM COMPONENTS

3.1 Payroll System Applications

3.2 Payroll System Functions

3.2.1 Input, Processing And Output

3.2.2 Payrolls System Feedback

3.3 Payroll Advance System

3.3.1 E-Payroll System

3.3.2 Web Base Payroll Service

3.4 Globalizing Payroll System

3.4.1 Multinational Payroll System Model

3.4.2 Global Payroll System Model

 3.4.3 International Payroll System Model

3.4.4 Transnational Payroll System Model

CHAPTER 4 INVOLUCRES

4.1 Implications Payroll System To The Management

4.2 Traditional Payroll System

4.3 Conventional Payroll System

4.4 Suggestions

4.5 Critical Analyses

4.6 Conclusion

CHAPTER 5 JOURNAL ARTICLE

Enhancing Staff Payment Systems At Hughes Supply

By Jay Romans, Caryl Lucarelli and Lindsay Graham

CHAPTER 6 STUDENT PERSONAL REFLECTIONS

6.1 Mohd Nasrun Firdaus Bin Azmi

6.2 Hj. Othman Bin Mohd Said

6.3 Normala Bte Abu Hassan

6.4 Muhammad Syaifullah Bin Jamaludin

6.5 Ruwaidiyyah Bte Md. Nor

6.6 Zuratul Jannah Bte Zuhairon

6.7 Sharil Izwan Bin Leman

BIBLIOGRAPHY
 CHAPTER 1

PRELIMINARY

1.1 Introductions

The payroll system enables the employer to process its payroll through a

computerized system. A manual payroll system requires that the payroll be processed by hand

and is therefore a considerably slower procedure than using payroll system. The former

makes payroll processing simpler, and reduces errors, which are more likely with the manual

system.

Hourly workers are paid according to hours worked during the pay period. The

employer uses a time-keeping system to track hours and pay hourly employees accordingly. It

is critical, therefore, that each employee’s time is computed accurately. Many employers use

a time clock to track work hours. A manual payroll system requires computing the time clock
data by hand; this increases the likelihood of mistakes. The automated time-keeping system

allows the employer to import time clock data into payroll software. Specifically, the

employee uses a swipe card or badge, or the hands print or fingerprint method, to clock in

and out. Once the entries are transported into the payroll software, the software computes the

time worked. All the payroll staff member has to do is ensure the time is transported

appropriately and make the necessary edits.

The payroll system uses payroll software to computer all wages. Payroll software,

such as QuickBooks, PenSoft, Z-Pay, Ultipro and Sage Peachtree calculate gross-to-net

earnings based on the data the payroll representative inputs. Therefore, the result depends on

the accuracy of the input. Thus, if a terminated employee is due severance pay but the payroll

representative neglects to make the entry, the system will not pay it. Typically, the system is

reliable so long as the entries are correct. The automated system performs all types of

payments: hourly, overtime, double-time, salaries, commissions, bonuses, pay raises,

retroactive pay, wage deductions, auto payments and tuition reimbursements. Notably, the

automated system eliminates manual pay check writing. The system automatically generates

pay checks and stubs and enables direct deposit.

Salary and wage deductions are a necessary part of payroll processing. The employer

must take mandatory withholding from employee pay checks, including income tax, loan

payment, insurance and zakat. These taxes can be time-consuming and perplexing to compute

manually. A number of rules are attached to withholding tax calculations. With an automated

payroll system, the software has the tax rates hard-coded in the system. It calculates the

withholding tax for each employee based on the withholding conditions data input. This

reduces the likelihood of payroll tax errors.

1.2 Payroll System Definition

Payroll is the means by which a company pays its employees for services rendered.

The most common payroll frequencies are once per month or twice per month. The manual

payroll system typically serves small business well. Employers with up to 10 employees tend

to go with this system. It is inexpensive to set up however it results in longer payroll

processing and is prone to making errors. Wages, taxes and accounting information must be

documented, and checks must be printed. All this is done by hand with a manual payroll

system.

A company with up to 50 employees can benefit from a computerized in-house

payroll system. Once an employer invests in one, he has a program that will do his

calculations for him. Still, he must enter the information. The system pays the employee

based on his input. The time involved in this type of payroll processing is less than with a

manual system, but he must ensure his calculations and records are correct.

A payroll system is the method used by payroll professionals to pay employees for

their services. Regardless of the type of system used, there are basic functions that must be

performed calculation of salary, allowance, incentive and mileage or deduction of tax, loan

payment and zakat.

1.3 Payroll System Benefits

Diagrams 1.1 Payroll System Benefits

The payroll system created was base on the growing number of employees in an

organization whereby no longer suitable done manually. It is time consume and human error

is unavoidable. However, every system created it does produce benefits to the employees and

organization as a whole. The benefits are more of enhancing employee payment system.
1.3.1 Cost Effective

It saves cost on printing/ writing pay check and it distribution. When authorized

signatures were not around to the check, then the delay was costly, expensive and

cumbersome.

1.3.2 Flexible

The new payroll system was convenience and peace of mind when come to

their pay. For sure late payment and out of control can be overcome. For new

employee, who join the organization on the middle of the month will still get his or

her pay on time. The flexibility on the payroll auto system makes it possible for the

pay to be credited into the bank account on time.

1.3.3 Accurate

All employees are to enjoy prompt payment convenience and peace of mind

when come to their pay. All types of payments such as over time, EPF payment,

income tax, salary adjustment and etceteras. All the date are key in into the system

before the cut off date for payment and the claim money and payments to various

agencies will appear in their pay slip. The purpose of electronic payroll system is the

accessibility to all employees and they can key in the data themselves.
1.3.4 Data Security

The payroll department will then have the supervisors checking every data key

in are accurate and are according to their entitlement. Thus every part of the payroll

payment process check and balance will be there to ensure safety.

1.3.5 Increase Productivity

The rapid growth of the company in the recent years had stretched manual

payroll system and any other types of payment to various customers, suppliers to the

breaking point. If so the payment was late, delay and etceteras, the supply of goods

will be distorted and so the production line. But if all the payment make are in time

then production will increase accordingly with the regular supply.

1.3.6 Easily Accessible

The main purpose of the payroll system is the accessible to all levels

employees. Interested employees were asked to select one of the options available that

suit them. There must be a compelling purpose behind the new system. The main

objective was to ensure that every employee received their pay on schedule date.

Accessibility makes them more convenience and effective in making claims from the

company. The employees are allowed to key in into the system with the given

password at any time of the day during the authorized period.

 CHAPTER 2

PAYROLL SYSTEM

2.1 Implementing Payroll System

Employers are responsible for paying their workers correctly and on time. To simplify

the payroll process, the employer needs a payroll system. A payroll system streamlines the

payroll aspect of the business. Without one, it is difficult to track and pay employees' time

and to adhere to the changing payroll and tax set by the government. When implementing a

payroll system, the employer must perform eight steps:-

1st Step

Determine the type of payroll system you want to establish. The payroll

system you choose should be based on the size of your business and how much

payroll responsibility you would like to maintain. The three main payroll systems are

manual, computerized in-house and external.

2nd Step

Use a manual payroll if you are comfortable doing your payroll by hand. If

you have only a few employees, this system may work for you. But keep in mind that

all wages and taxes are computed manually, which can result in payroll errors.

3rd Step

Purchase payroll software and hire a payroll staff. Depending on the size of

your company, you can hire one payroll person and buy affordable payroll software,

such as Quick pays, or you can hire a full payroll staff and purchase a more expensive

in-house computerized system, such as Ultimate Software. Unlike a manual payroll

system, a computerized in-house payroll system saves on time and gives you access to

an onsite payroll staff.

4th Step

Use an external payroll system if you do not want to be bothered with payroll

at all. The external payroll system is an increasingly popular method, which includes

outsourcing all of your payroll duties, including taxes and benefits administration, to a

payroll service. For a small fee, the payroll service handles the entire payroll

processing, eliminating the need to pay salaries and benefits to a payroll staff.

5th Step

Establish a pay date. Pay frequencies are up to you; however, weekly and

biweekly are most common for hourly workers, and biweekly and semi-monthly are

most common for salaried workers.

 6th Step

Decide on a time-keeping method, such as a time clock. According to the

Department of Labour, an employer can use whichever time-keeping strategy he

chooses as long as it correct and complete.

7th Step

Train the payroll staff on the payroll system, if necessary. If you have a more

complicated in-house system, such as Ultimate Software, consider hiring specialists to

train the payroll staff. Have the payroll department do a mock payroll before running

the first payroll. A test run will pinpoint any system glitches. Address issues before

the time for doing the actual payroll arrives.

8th Step

Ensure your payroll department and your finance department are working

together, if applicable. Some payroll personnel are responsible for wage reporting and

tax matters. However, some companies have a finance department that handles tax

issues and payroll accounting. If so, ensure the two departments are properly

streamlined.

2.2 Advantages

For employees to get paid, the employer must have a payroll system in place. The

type of system is up to the employer and should be based on his needs. He may use a manual,

in-house computerized or external (outsourced) payroll system. The advantages by using the

payroll system:-
2.2.1 Allows Timekeeping

Generally, salaried employees do not punch time clocks because they are paid

a firm wage each pay period. Therefore, employers often do not track salaried

employees' time. Hourly workers are paid based on hours worked and may qualify for

overtime pay. Consequently, the employer must enforce a timekeeping system, which

allows him to monitor hourly employees' time and pay them accordingly. The

employer can use the timekeeping system of his choice as long as it is correct and

complete. A payroll system allows the employer to incorporate a timekeeping system,

which ensures that employees are paid according to their hours worked.

2.2.2 Enables Payroll Processing

A payroll system allows the employer to perform the tasks necessary to ensure

accurate and timely pay checks. Payroll processing duties include coding and paying

employee hours. For instance, if an employee takes others incentive or personal hours,

the hours should be coded and paid as such. Payroll processing may also include

direct deposit, payroll taxes and benefits processing. Depending on the system used,

tasks may vary. Manual payroll processing may include manually calculating time

sheets and printing employees' pay checks on a typewriter. In-house computerized

payroll processing may include an on-site payroll staff and using payroll software to

process the payroll. External payroll processing includes entrusting the payroll to a

payroll service provider; the employer ensures the latter receives the necessary data to

process the payroll.

2.2.3 Coordinates Departments

If the company has an accounting department and/or a human resources

department, the payroll department usually has to work closely with these sub-

divisions. For instance, accounting may handle payroll reconciliation, and human

resources may handle benefits administration. Through the payroll system the

employer creates procedures that coordinate the payroll department with these other

departments. For example, for each pay period, the payroll department forwards the

necessary reports to accounting for reconciliation. In addition, it assists human

resources with tracking employee's benefit days, such as vacation time, personal time

and sick time.

2.2.4 Meets Compliance Criteria

Payroll tax law are ever changing and can be quite complex. The employer

must withhold federal, state (if applicable) and FICA taxes from employees' pay

checks. Plus, he is responsible for his own portion of taxes. Furthermore, the DOL

notes that employers must maintain payroll records for a minimum of three years. A

payroll system allows the employer to structure his payroll so he complies with

payroll tax laws and meets record-keeping requirements. For instance, if he uses the

external payroll system, he may give the payroll provider "Power of Attorney" to

handle the company's payroll tax matters.

2.3 Disadvantages

Employers have to ensure their employees and taxes are paid in an accurate and timely

manner. Consequently, they use a payroll system that best suits their needs. Although payroll systems

can provide payroll services that are advantageous to the employer and his employees, they also have

disadvantages

2.3.1 In-House Computerized System

An in-house computerized payroll system is equally as popular as an

outsourced system. The employer simply purchases the payroll software and hires an

in-house payroll staff to do the payroll processing. The disadvantages of this system

include the employer having to pay salary and benefits to his payroll staff, as opposed

to paying a small fee to outsource his payroll. The in-house computerized payroll

staffs generally have additional tasks such as quarterly and annual income tax, direct

deposits and payroll database maintenance. When glitches in the system occur, the

payroll staffs have to work overtime to help solve the problem, which can be costly to

the employer. The stress level on the payroll staff can be considerable when payroll

issues occur. Employees can approach the payroll person directly as opposed to

having to rely on their superior to contact the off-site payroll supplier.

2.3.2 Out Of Office

The major disadvantage of using the online payroll system is your services are

provided by an outsourcing company and you do not have direct control over the
function of your payroll. It is out of your business and you must have complete trust

and confidence in your payroll system in order to have peace of mind.

2.3.3 Internet Provider Down

Using an online payroll system required you to reply on the internet for all of

your data transfers and communication. If your internet service is down, your

information transfer is inhibited. This is a major disadvantage when computing online

services to in house processing where data entry and information access is never a

problem.

2.3.4 Retraining Employees

Staff payroll will need to be retrained on the new system is elect to use an

online payroll system. This can only be time consuming but also expensive. Would

not be necessary if we continued using current payroll system.

2.3.3 Possible Set up Costs

We will face with some type set up cost for a new computer system. These

costs can be avoided if we maintain with the current payroll system.

2.4 Payroll System Management

Diagram 2.1 Payroll Management System Flow Chart

Step 1 of 4

From SELECT PERIOD, choose the current payroll processing Period. For example,
end month of March 2011.
Step 2 of 4

From EMPLOYEE MASTER, update employees' personal particulars. For example,

salary increments, new fixed allowances or fixed deductions, increment date,
resignation date, change of EPF or taxation, etc.

You need to update EMPLOYEE MASTER only when :

 There are new employees being hired

 Changes in employees’ salary (eg. increment/decrement)

 Changes of fix allowances or deductions

 Changes of salary computation method for the employees (eg. EPF groups)

 Finally, if there are changes in employees’ personal particulars

Step 3 of 4

Then, execute PROCESS PERIOD. Process Period will transfer basic salary and fixed
allowances and fixed deductions into SALARY ENTRY. You only need to execute
this function once. Then, you may proceed to update individual employees' salary for
the month in SALARY ENTRY.

Step 4 of 4

From SALARY ENTRY, proceed to enter employees' overtime hours, unpaid leaves,
annual leave taken, commissions, claims, etc. When SAVE button is selected, the
payroll system will immediately calculates EPF, SOCSO, PCB and Nett salary and
stores the ACTUAL salary for the month.

NOTE: Before proceeding to print reports, ensure all salary items in the SALARY
ENTRY module are correct. All report figures are retrieved directly from
SALARY ENTRY module.
 CHAPTER 3

PAYROLL SYSTEM COMPONENTS

3.1 Payroll System Applications

Payroll system is a standalone window based applications. It provides a wide array of

functionalities, from registering or managing basic information on companies and employees

to salary processing, bonus processing and up to year-end adjustment for employees.

Payroll system applications empowers to:-

∞ Manage employee information efficiently

∞ Define the emoluments, deductions, leave, tax etc

∞ Create own salary structure and formulae

∞ Generate Pay-Slip at the convenience of mouse click

∞ Generate and manage the payroll processes according to salary

structure assigned to the employee

∞ Generate all the reports related to the branch, department or employee

∞ Manage own security.

3.2 Payroll System Functions

Payroll system includes the management process of employees' salary and other

deductions, overtime allowances, the remuneration of contractual employees, the payment

arrears of salaries and so forth. Payroll system also helps organizations to manage and

produce monthly salary payment system for all employees. This function also includes the

production system of salary payments, bonus payments and others.

3.2.1 Input, Processing And Output

Diagram 3.1 Payroll System Method

An information system is typically considered to be a set of interrelated

elements or components that collect (input), manipulate (process) and disseminate

(output) data and information and provide a feedback mechanism to meet an

objective. These are the basic functions of a computer system. Nowadays most of the

payroll system has using this model. Data must be feed into the computer (input),

which is then analyzed and reorganized (process), and then it is displayed or printed

(output).
 Diagram 3.2 Payroll System Component Functions

Input

Diagram 3.3 Example Of Data Input

 In Information System fundamentals, input is the activity of gathering

and capturing raw data. In producing pay checks, for example, the number of

hours every employee worked must be collected before pay checks can be

calculated or printed. Input can take many forms. In an information system

designed to produce pay checks, employee time cards might be the initial

input. Input can be a manual process or it may be automated. Regardless of

the input method, accurate input is critical to achieve the desired output.

Process

Diagram 3.4 Example Of Data Processing

In information systems, processing involves converting or

transforming data into useful outputs. Processing can involve making

calculations, making comparisons and taking alternative actions, and sorting

data for future use. Processing can be done manually or with the assistance of

computers. In payroll, the number of hours each employee worked must be

converted into net pay. The required processing can first involve multiplying

the number of hours worked are greater than 40hours, overtime pay may also

be determined. Then deductions are subtracted from gross pay to get net pay.

For instance, federal and state taxes can be withheld or subtracted from gross

pay; many employees have health and life insurance, savings plans and other

deductions that must also be subtracted from gross pay to arrive at net pay.

Output

Diagram 3.5 Example Of Data Output

In information systems, output involves producing useful information,

usually in the form of documents and reports. Outputs can include pay checks

for employees, reports for managers and information supplied to stockholders,

banks government agencies, and other groups. In some cases, output from one

system can become an input for another. For example, output from a system
 that processes sales orders can be used as an input to control other systems or

devices. Output can be produced in a variety of ways. For a computer,

monitors and printers are common output devices. Output can also be a

manual process involving handwritten reports and documents.

3.2.2 Payrolls System Feedback

Diagram 3.5 Example of Complete Payslip Printed

In information systems, feedback is output that is used to make changes to

input or processing activities. For example, errors or problems might make it

necessary to correct input data or change a process. Consider a payroll example.

Perhaps the number of hours an employee worked was entered into a computer as 400

hours instead of 40 hours. Most information systems check to make sure that data
 falls within certain predetermined ranges. For number of hours worked m the range

might be from 0 to 100 hours. It is unlikely that an employee would work more than

100 hours for any given week. In this case, the information system would determine

that 400hours a week is out of range and provide feedback such as an error report.

The feedback is used to check and correct the input on the number of hours worked to

40.

If undetected, this error would result in a high net pay printed on the pay

check. In some information systems of course the most ideal thing to do is to install

an algorithm that would prompt the user if the predefined range was breached. This

algorithm could be in a form of an error message done through error trapping during

the development stage of the information system. As a conclusion, manual processes

can just as easily sort data into meaningful records. However, automation can greatly

enhance the ease at which this can be accomplished with accuracy.

3.3 Payroll Advance System

Nowadays payroll advance system is the most popular by the organisation. No

wonder it was a big or small company they will use payroll advance system to

competent their salary management and its concept was paper less. For this sub topic

our group will describe for two method payroll advance that is E-Payroll System and

Web Base Payroll System.

3.3.1 E-Payroll System

E-Payroll is leading online Payroll solutions provider, giving small to medium

businesses a payroll platform that saves time and money and increases efficiencies

across your business. Now if you think that sounds good, what’s even better is that all

your business Payroll information and reporting is safely stored in one place and is

accessible online, anytime. In today’s business environment, it has become

increasingly imperative for small businesses to be more transparent. That’s why E-

Payroll not only provides transparency, but is easy to use and comes with an online

set-up wizard.

E-payroll models automatically collect data regarding employee attendance

and work record for the purpose of evaluating work performance, they calculate

various deductions including tax, and generate periodic pay cheques and tax reports.

Payroll modules in turn send data and accounting information to the general ledger for

posting and subsequent operations and they frequently integrate e-payroll with e-

finance management. E-payroll is able to process from data, simultaneously, fully

reconciled results and multiple employee groups. By preparing paperless online pay

slips, the system is able to reduce administrative costs and time for the total

operations. Employees too can view their exclusive data and get personalized reports.

User can create and set-up your own business Payroll online, giving your staff

access to their payment details, pay slips, superannuation, annual leave entitlements

personal leave and more. Gone are the days where you need to print and distribute

payslips and leave forms. Imagine the time and paperwork you will save.
 Diagram 3.6 E-Payroll System Online Concept

Features of E-Payroll include:-

 Employee self-service (ESS)

 On-demand reporting

 Online leave management

 GL integration

 Salary packaging

 Automated superannuation payments

 Roistering

 Timesheets

 Accurate Reporting

Not only is E-Payroll equipped with full compliance and constantly updated

with changes in legislation, it is also supported with a knowledgeable and experienced

support team.
3.3.2 Web Base Payroll Service

This program will allow for complete automation of the payroll systems of a

company. Users will be able to clock in and clock out from a simple web browser.

User Clock in and Clock out can be controlled by specifying specific IP addresses

from which the latter can clock in and out for work. Users will be able to view and

print reports about their hours worked and work done during any period of time.

Administrators will have web based control panels to completely customize the

payroll systems. There will be tools like controlling access by IP address, generating

payroll reports, edit employee timesheets, manage projects, getting payroll statistics

and many other features.

Many employers across the country have changed over to web based payroll

systems. The convenience alone brings time efficiency to a whole new level. A Las

Vegas web based payroll system in Nevada is designed to handle any specific tasks

critical to employers needs. Many employers there love the idea that they can finish

their payroll in just a few clicks. Web based payroll systems are not only popular in

Las Vegas, Nevada. Cities such as Tucson and Phoenix, Arizona have switched from

the tedium of hours of manual payroll to doing their employee’s payroll online.

Both the Phoenix web based payroll system and the Tucson web based payroll

system have become extremely popular. Since these two cities are slotted in the top

ten fastest growing populations in the southwest United States, productivity and time

efficiency have become critical to businesses. As these cities grow, so do the numbers
of employees. Having a payroll system that does most of the work and takes just a

few clicks of the mouse makes time for payroll keepers to handle other duties.

An Arizona web based payroll system, like those in other states, brings the

technology of the internet into your home office as well. Web based payroll systems

are for small to medium size companies too. As your business grows and you hire

more employees, you can simply enter their hourly rate and any other pertinent data

and the web based payroll system does the rest. Online or web based payroll systems

simply makes your life easier and opens you up to take care of other business details.

No more missed calls, meetings or appointments from potential and very profitable

new contracts or clients. Leave the payroll to a payroll service or a PEO, you won’t be

sorry. Time is money as they say. Most Web-based Human Resources Management

systems offer more than HR and employee benefits administration services such as

payroll, talent management, applicant tracking, recruiting tools, pre-employment

testing, background checks, labour law resources and skills training.

Also it is equally as important to choose a Web-based Human Resources

Management system that is easy to use. Selecting a solution with an interface that is

difficult to access and navigate can discourage employees from embracing the service.

Be sure to select a user-friendly option to encourage employee participation.

Regardless of your industry or business size, a Web-based Human Resources

Management/payroll system can help your company achieve productivity while

staying within the company budget. By choosing a Web-based Human Resources

Management system and making these simple, but valuable changes, employers can
 turn a basic HR practice into a highly efficient and responsive process that benefits

employees, organizations and the environment.

3.4 Globalizing Payroll System

We live in an age of globalisations with organisations increasingly reviewing their

global options for shared services and outsourcing. This whitepaper will focus on the

globalisation of Payroll and recommend a solution that clients seeking globalisation should

follow. Payroll is the underestimated function that sits between HR and Finance. In

organisations that operate in numerous countries, the Payroll function can look very different

from country to country, and certainly when comparing that function to the same function in

other organisations.

Payroll is often an after-thought for executives. However, this can be a complex area

for which the effort in structuring and the benefits in getting “the right” structure can be

significant. The considerations for global organisations with regards to centralisation v

decentralisation can be summarised into people, process, and technology:

People Perspective:

A number of countries will each have less than a handful of staff handling the payroll

processing, and given the statutory and organisational risk in any changes to the

payroll sub function, it is always a temptation to leave things as they are! Whilst for

larger countries with sizeable payroll functions, it may be cost effective to migrate to

a low cost location, for smaller countries this may not be economical.
Process Perspective:

Each country will have the same outcome for Payroll, as each aims to achieve the

delivery of payslips and payments to the employees in the company. However, there

will be a number of different ways to achieve this outcome due to the legal and

statutory requirements, as well as due to the evolution of the function in Payroll.

When looking to globalise Payroll, the local requirements and the language

dependencies need to be balanced with the benefit of centralisation.

Technology:

Global organisations have a huge number of payroll systems that support the process.

This can be due to inconsistencies with utilising a standard internal payroll solution,

local decisions made without considering the global organisation, or because of a host

of different outsourced solutions are utilised across countries. Either way, the decision

on centralising or otherwise has tremendous technology implications. The most

important decision lies on which payroll application to select: one multi currency

system or a number of systems customised for local requirements. The initial

technology landscape and the journey towards the future model is an essential

consideration and can impact significantly on the time frames of globalisation.

3.4.1 Multinational Payroll System Model

Multinational payroll system model was take a responsive approach to

implementing and managing the payroll system by comprises the system of separately

lineated by national boundaries. It was an independent system and only localized by

the organisation. Multinational payroll systems systematically are:-

Capabilities :- Decentralized and self-sufficient.

Operations :- Seeking and exploiting local opportunities.

Management : - Subsidiaries comprise a payroll system by independent.

Knowledge :- Developed and retained within each unit.

Control :- Personal and informal (Simple financial controls)

3.4.2 Global Payroll System Model

Global payroll system model was takes an efficiency approach to

implementing and managing the system by building a single and standardised

centralised. All of function of the payroll system will be control by centralised and it

will be focus on maximizing efficiency on standardised operating systems. Global

payroll systems models systematically are:-

Capabilities :- Centralized and globally scaled.

Operations :- Implementing parent companies strategies.

Management : - Subsidiaries are delivery pipelines to global market.

Knowledge :- Developed and retained at the centred.

Control :- Operational and strict (Tight control over everything)

3.4.3 International Payroll System Model

International payroll system model was takes a learning and sharing approach

to implementing and managing the system by transferring and adapting knowledge

and expertise to local organisations while continuing to retain considerable influence

and control over the local organisations. This system will allow for local control over

many decisions, responsibilities and asset. With this system it becomes balance

between local autonomy and central oversight. International payroll systems model

systematically are:-

Capabilities :- Only sources of core competencies centralized.

Operations :- Leveraging parent company competencies.

Management : - Subsidiaries appendages to domestic corporation.

Knowledge :- Developed at centred and transferred overseas.

Control :- Administrative and Formal (Tight linkage with headquarters)

3.4.4 Transnational Payroll System Model

Transnational payroll system model was increasing complexity, diversity and

volatility of the system. It was a combination all of the model and brings efficiency

through an integrated network of competencies and processes, provides flexibility

through specialised roles and responsibilities and creates a learning organisation

through the facilitation of multiple innovation processes with three critical component

that is global efficiency, local flexibility and innovation/sharing. Transnational payroll

systems model systematically are:-

Capabilities :- Dispersed, interdependent and specialised.

Operations :- Differing contributions by national units.

Management : - Coordination (Cooperation and shared decision-making).

Knowledge :- Developed jointly (Shared worldwide).

Control :- Large flows among individual business units.

 CHAPTER 4

INVOLUCRES

4.1 Implications Payroll System To The Management

Our group was make assumption there is two general implications have been by using

the payroll system to the management. The two general implications are good implications

and worse implications.

The good implications are mean by using the payroll system, the management can

achieve the positive improvement such as:-

a) Reduce the management cost

By using the payroll system it may reduce the management cost. The system

may reduce the cost of paper, telephone, postage and printing example E-

Payrolls. It also paperless support system.

 b) Easier to compliance, manage and report

Payroll system have been designed to optimum the salary management to the

company, it will let the management of the company easier to compliance,

manage and report of the monthly salary by data collecting, data processing

and data storing and all of the information and document through the

computerized system.

c) Reduce number of employees

The management can reduce to hire more employees when using the payroll

system. The system was generated to collecting, process and storing data with

the less manpower needed. It may reduce the number of employees to involve

in manages the payrolls management.

The worse implications are mean by using the payroll system, the management were

facing the negatives impact to the organisation management such as:-

a) Not Apply To Unskilled Manpower

That was barrier to practices the system if the manpower unskilled about the

system. The manpower need to attend a special course or trained by a vendor

to using the system in a good ways. It may take a time to expert.

b) High Maintenances Cost

The system must be have a good maintenances by the IT department

especially if there are using a network system or online system. All the

computerized system must be protected from the phishing or hacking by the

hackers. There are lot of Payroll System software in the market with the

different vendor. We need to use the genuine software to avoid the problems.

c) System Server Breakdown

When the system server breakdown the payroll system cannot work well.
4.2 Traditional Payroll system

Employers are responsible for ensuring that their employees are paid accurately and

timely. To accomplish this feat, employers often use a payroll system. All traditional payroll

systems have their own method of payroll processing. Although they can provide invaluable

payroll services to employers, there are some cons to using them.

Outsource/External

An outsourced or external payroll system is used when an employer assigns

the bulk of his payroll tasks to a payroll supplier. Payroll chores include complete

payroll processing, tax filings and sometimes 401k administration. Many employers

outsource their payroll because it is relatively inexpensive and relieves them of

payroll processing burdens.

The downside to this system includes the inability to contact a live payroll

professional when an urgent need arises. The payroll supplier is located off-site and

often couriers the pay checks/stubs to the employer. If employees have pay check or

direct deposit discrepancies, and the payroll supplier has too many clients or is

understaffed, it can be very difficult getting resolutions as quickly as desired. With the

payroll company operating from a remote location, it can be tough to decipher what is

truly occurring with your payroll until payday. If the payroll company makes tax

errors, the employer may not be aware of it until the government fines him.
In-House Computerized

Many employers use an in-house computerized payroll system, which is just

as popular as an external payroll system. All the employer has to do is buy the payroll

software and employ an on-site payroll staff to perform the payroll processing.

The cost involved in paying the payroll staff a salary plus benefits is often a

disadvantage of this system, particularly when compared to the low cost of

outsourcing the payroll. Further, the payroll staffs is often responsible for extra tasks

such as tax filings, processing, benefits administration, direct deposits and system

maintenance. If system problems occur, the payroll staffs is often required to work

extra hours to help fix the issue, which can be expensive to the employer. The payroll

staffs undergo considerable stress when payroll errors occur because employees can

approach them directly, rather than waiting on their supervisor to contact the external

company.

In-House Manual

The in-house manual payroll system is the most traditional payroll system;

however, it is becoming increasingly uncommon. Employees' time sheet and wage

calculations, payroll verifications, check printing, and tax computations and filings

are all done by hand. All payroll errors are corrected manually as well, resulting in a

tedious task. The greatest disadvantage of manual payroll systems is their propensity

for errors. With so many calculations being performed by hand, it can be quite easy to

make mistakes and doubly hard to correct them.

4.3 Conversional payroll system

The most obvious benefit of conversional payroll system with payroll software is that

payroll calculations such as tax deductions can be completed in a fraction of the time that

they would take to work out manually. Year-end reporting is also usually automated, and

both pay slips and annual reports are archived in case copies are needed later

Time recording

Payroll systems can also incorporate, or integrate with, timesheet systems that

record employee attendance or time worked. In this way, information about hours

worked, whether collected automatically as a user or operator logs into a system, or

manually entered into an electronic form, can be automatically transferred into the

payroll system

Reporting

Using basic payroll data, together with data on attendance and hours worked,

payroll systems can provide a wealth of reports. This allows in-depth analysis of staff

costs for the business as a whole, across departments and even individual jobs and

contracts.

Storing personnel records

Most organizations will also keep other data about employees, such as records

of annual leave. This type of information is usually associated with the broader human

resources function. You can get payroll systems that will record these additional types

of information, avoiding the need for a separate software package.

 Planning

The ability of payroll packages to provide forecasts means you can plan staff

costs and budgets by entering hypothetical numbers to see the exact total cost of an

employee.

4.4 Suggestions

The new payroll system must be flexible enough to cater the needs for various

components. This component can be grouped into 3 component that is input, HRIS database

and output. Input, one of the main components in the subsystem. It is also referred as a main

gate to the access of information. This component function is to smooth down the system to

enable the user to get to it step by step. Without it, the whole system is a failure and it has to

be sure of its accessibility of every access of information in it and for every updating process.

4.4 Critical Analysis

For the payroll system we should looks at two points of view. View of the employees and also

the manager. Is the payroll system is benefited for both parties? The payroll system must be benefited

for all the employees in an organization and also must be easy accessible to employees. With the

payroll system, employees can view their salary on line and print out the salary slip. In certain

organisation employees are allowed to print and certain organisation does not allow it because of

security reason. Compared with manually where employees need to wait their salary slip given by the

Human Resource Department. It could be delayed in distributing the salary slip due to technical

problem. With the payroll system all the data were kept safely in the system. The employees can view

their monthly salary throughout the year and the data can be accessible easily.
 The employee data must always be updated. If there are any changes on the employee

data, it’s their responsibility to update n validated by the employees themselves and Human

Resource Department will oversee the accurateness of the data.

A critical and challenging function for organization of any size is running a prompt and

accurate payroll. The flow on effects of payroll errors can have a crippling influence on stability

across the business. The payroll documentation can consume considerable time and labour in the HR

department. Integrated e-payroll system updates employee information such as changes in

demographics, benefit eligibility, income tax, employment status, zakat and salary in real time across

all e-payroll system. Reports generated by the software become useful tools for analyzing labour costs

and exposure and tracking daily payroll expense against sales, as well as monitoring salary grade and

pay band distribution across the organization. Existing financial management systems can be

interfaced with e-payroll system.

4.5 Conclusion

Base on the topic, a conclusion can be made when ePayroll system give a lot of

benefits to the employees and organization specifically. If we compare with the new system,

the company has to spent more money for the overtime paid to the staffs and more times to

go through the process. However, by implementing the online ePayroll, organization saved a

lot of time and money. Besides, if the organization increase the quality of the subsystem in

the ePayroll, job description, employee performance appraisal which can give a lot of

information to the employees. Employee will spend less time in order to get update

information about on employees and organization.

 CHAPTER 5

JOURNAL ARTICLE

Enhancing Staff Payment Systems At Hughes Supply

By Jay Romans, Caryl Lucarelli and Lindsay Graham

 CHAPTER 6

STUDENT PERSONAL REFLECTIONS

6.1 Mohd Nasrun Firdaus Bin Azmi

Assalamualaikum W.b.t

Praise to Allah S.W.T finally, we have finished completed this group assignment. For

me it was the interesting paper work. From the task I gain more knowledge regarding the

payroll system especially how to create an idea to elaborate the information from the books,

journal, article and real system. And what I found, nowadays technology of payroll system is

so fearfulness and advance. For my group members, the cooperation given among all of us is

very effectively. Every weekend we do the revision and together discuss about the project.

Even they are may obstacle in order to finished it such as time constrain which a lot of work

to do is office but we do it as good as possible. As the student of HRD we need to be an

expert about the HRIS and the need moving towards to the ICT. I’m happy in doing this task

because besides getting knowledge about HRIS topics, I also get an experience to improve

my knowledge.
6.2 Hj. Othman Bin Mohd Said

My experience in this assignment, give me a wrong picture. Never the less after few

discussions, I was put into a right track. However, due to insufficient knowledge and

information, the progress was delay but after several discussions. We manage to complete it.

Thank you for introducing SHP 3423 to me and with the experience gained it gives me much

more confident in this subject and its application. The whole subject matter was a perfect slot

for my unfilled vacuum knowledge. Last but not least, I sincerely hope that the report is as

expected by our lecture DR. Nur Naha Abu Mansur for her guidance.
6.3 Normala Bte Abu Hassan

I would like to say thank you to all my group members for their efforts and

times to make sure this project paper is done successfully. Also would like to thank our HRIS

lecturer Dr Naha for her guidance and comments for this project paper. As one of the user of

the payroll system, I did not know the follow of the system and how my Human Resources

Department worked with the system. As I know at the end of the month just only view the

pay slip and print it out. With the topic that our group choose, it’s help me to understand the

follow of the system itself. It’s help me a lot on to understand the whole process of the

system even I am not working in the Human Resource Department but I really gained a

valuable knowledge of the payroll system. As the student of the HRD we need to know the

latest for the HR system even duo we are not working at IT Department. With the latest

technology of IT, its helps a lot in keyed in the data system of the employee and also save

time. Last but not least, I am happy with this project paper and hope our lecturer, Dr. Naha

satisfied with it.

6.4 Muhammad Syaifullah Bin Jamaludin

This our 2nd project paper for Human Resources Information System. We plan and

design this project early of the semester. Several discussions we had done in order to make

sure this project paper done properly. Every group members are given their own task and

need to complete within the time frame given. If one of the group members did not

understand about the task given, we will hold a discussion and help our group members to

solve the task. For my point of view, payroll system is very important in every company.

Because that is the important part for the company and employee itself. With the payroll

system, employee can view and print their pays slip without waiting for the Human Resource

Department to give to employee at the end of month. Employee can view their pay slip at any

time their like because the system keeps the data. Lastly, I would like to thanks my group

members for the guidance and also our beloved lecturer, Dr Naha for her comments and

supports.
6.5 Ruwaidiyyah Bte Md. Nor

Assalamualaikum w.b.t

Many thanks to Dr. Nur Naha that has been exposed me to another strategic plan in

managing human resources through this subject. As a Human Resource Officer for three

years without basic knowledge, it was like a man in a dark looking for brightness to get the

true path. Yet, I’ve got an idea on how to manage my department in proper way, effectively

and efficiently. After completing this assignment, it can be conclude that Payroll systems can

define standard rules for automatically assigning and changing employee salary by using

simple formula. They are able to control processing rules and calculations using fast formula

and use logic for complex cases. They can manage global compensation with one application

by implementing a core payroll engine and installing local extensions to add the necessary

functionality, reporting and process for individual countries. As this assignment completed, I

have found that this system is one of the efficient and helpful tools in managing my task

systematically. I’ve been approach this system (HR2000 Quick Pay and Quick Staff) to my

management to be use into my department. After details review and discussion on the

proposal prepared with the principles, the management had agreed to get this system into the

department. Yet I’m on my learning process to use and master the system. It is not just

making my task easier, but had upgraded my organization to one step ahead as one of

Information Technology System Integrator. Hopefully, this will help me in my carrier

development, improve my skill and challenge my ability to look forward to be a competent

and successful HR Manager in two years ahead. Insha’Allah. Finally, a thousand thanks to

my entire group mate for their kind cooperation and gave the best effort to complete this

assignment very well. Well done and all the best guys!
6.6 Zuratul Jannah Bte Zuhairon

First of all, I would like to express my gratitude to Dr. Nur Naha for

the exposures of Human Resource Information System (HRIS) and guided us along

the accomplishment of our HRIS subsystem group project.

By doing this assignment, I am now really understand the model of HRIS

especially the payroll system. Before this I only heard about payroll system without

having depth knowledge on how to create online system using HRIS subsystem

components which are input, process and output. It has been good for me to learn

first-hand what this human resource information system is all about.

And not to forget to all my group members, I will always be thankful to you

for all the hard work and efforts you have put in. I would like to add that I have really

enjoyed the experience of working together to complete this assignment and I also

believe that group work is an inevitable part of students’ life, and indeed life in the

workforce so I have come to the conclusion that it is better to get involved and do the

work as a team rather than working alone. That way there is a better blend of ideas

being thrown around while the work is completed in a shorter space of time.

Thank you once again to all for your guidance and patience.
6.7 Sharil Izwan Bin Leman

When my group get this topic, I’m just say WOW!!, because before this I’m just only

heard about payroll system but didn’t have intention to know deeply. During this task, I and

my group members hardly to find what mean payroll system. For me it was best experience

because we need to search Google it all times to ensure that we have right understanding

about this topic. Although this task give me the learning fun, I’m quit depressed because have

to face the problem, which need me to solve slowly. These tasks give me challenges to know

how it’s operation and process the system. The misunderstanding about opinion always

happens because everyone has their own perception. Besides, these tasks also given me an

experience to handle the problem with minimal resource that we have. I and group need to

find it hardly in short times. I’m also felt happy and satisfied because all of the group

members gave a full commitment in order to produce a good project. Lastly thanks to my

friends and my lovely lecture Dr. NUR NAHA.

BIBLIOGRAPHY

Dr. Nur Naha Abu Mansur Lecture Note SHP 3423 Human Resources Information System

Unpublished

J. Allen Doran, Ian J. Turnbull, Glenn M. Rampton Human Resource Management

Systems: A Practical Approach 2nd edition 1999 Carswell Legal Publication Toronto,

Canada

Dr. Michael J. Kavanagh, Dr. Mohan Thite Human Resource Information Systems: Basics,

Applications, and Future Directions 1st edition 2008 Sage Publications Inc USA

Robert H. Stambaugh 21 Tomorrows: Hr Systems in the Emerging Workplace of the 21st

Century 2000 Rector Duncan & Associates inc. 314, Highland Mall Boulevard,

Austin, Texas, 78752 USA.