PAYROLL MANAGEMENT SYSTEM

2011

CHAPTER1 : INTRODUCTION
Payroll is the sum of all financial records of salaries for an employee, wages, bonuses and deductions. In accounting, payroll refers to the amount paid to employees for services they provided during a certain period of time. Payroll plays a major role in a company for several reasons. From an accounting point of view, payroll is crucial because payroll and payroll taxes considerably affect the net income of most companies and they are subject to laws and regulations. From an ethics in business viewpoint payroll is a critical department as employees are responsive to payroll errors and irregularities: Good employee morale requires payroll to be paid timely and accurately. The primary mission of the payroll department is to ensure that all employees are paid accurately and timely with the correct withholdings and deductions, and to ensure the withholdings and deductions are remitted in a timely manner. This includes salary payments, tax withholdings, and deductions from a paycheck. Thus the department which deals with payroll of all the employees is called payroll management department. Initially this work was done manually and hence it was quite time consuming and error prone. This caused the need of managing the payroll through the computer. Our minor project deals with developing a window application to manage the pay of the employees of any college.

The purpose of this project is to obtain agreement regarding the objectives the system must meet. This Payroll system helps the college to honor its professional commitments by following a tailored version of the standard process of calculating the salary of all its employees. This application is supported by database. Which consist of personal details of the employee as well as their salary details and their leave allowances. Based on these details at the end of every month the application automatically generates a salary slip for the employee and also maintains the same in the database. . This Payroll Processing application also considers employees income tax regulation. An employees pay is decided by his post and experience. To this salary there are certain additions and deductions.

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Additions include AGP (Annual Gross pay) , DA (Dearness Allowance) , HRA (House Rent Allowance), CCA(City Compensatory Allowance) & Other Allowances such as ANO, Warden & Handicapped. Deductions include PF (Provident Fund), QR (Quarter Rent), IT (Income Tax) & Other Deductions. Based on these considerations the salary of each employee is deducted at the source. Customer:-The target user group of this application basically consists of Administrator. Who is generally a person from the accounts department. Purpose of the project is to maintain the information regarding the employee, calculate and their salary and then generates the pay slip.

1.1.METHODOLOGY: The salary is decided by the post of the employee. Then to this salary there are certain addition and deductions depending on the gross salary. The additions and deduction are listed in table no 1. TABLE NO 1: LIST OF ADDITIONS AND DEDUCTIONS SALARY ADDITIONS AGP DA HRA CCA OTHERS The salary for different employees is different. For example if the the employee is the principle then he get a salary ranging from 37400 67000 Rs. If he is a professor then he gets a different salary and so on. Depending on their various salary their annual gross pay is decided which is further added to the salary. The following table gives the different salaries of an employee in a college with their AGP. DEDUCTIONS PF QUARTER RENT INCOME TAX OTHERS

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TABLE N0 2 -SALARY OF VARIOUS EMPLOYEES

S.NO
1 2 3 4 5

DESIGNATION
PRINCIPAL PROFESSOR ASSOCIATE PROFESSOR ASSISTANT PROFESSOR(SENIOR) ASSISTANT PROFESSOR

SALARY (IN RS.)

37400 67000 37400 67000 37400 67000 15600 39100 15600 39100

AGP
10000 10000 9000 7000 6000

1.1.1. ADDITIONS DA(Dearness Allowance) is calculated from the following formulae:

D A = 51% OF PAY + A G P.

HRA (House Rent Allowance) is given only to those employees who do not live in quarters provided by the government but stay In their private accommodations . It is calculated as:

H R A = 20% of PAY + A G P.

CCA (City Compensatory Allowance) is fixed as Rs 240 a month for every employee.

Other allowances are given to those employees who generally are responsible for some other duties as well such as ANO and warden. 1.1.2.DEDUCTIONS

PF(Provident fund) is that amount that is deducted at the source and is later on given to employee on his retirement with interest. This is done so that the employee does not have to depend upon any one in his old age when he does not have any source of income.

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Pf is calculated as: PF = 12% of actualpay + AGP +DA QUARTER RENT: if an employee stays in the quarters provided by the government then he has to pay some money as maintenance bill. This is called quarter rent. Quarter rent is decided upon the salary received by the employee. The following table gives the quarter rent depending upon the salary.

TABLE NO 3:- NORMS OF QUARTER RENT QUARTER RENT LESS THAN 3700 3700 5500 5500 8300 8300 10800 10800 & ABOVE 1% OF TOTAL PAY 1.5% OF TOTAL PAY 2 % OF TOTAL PAY 2.5% OF TOTAL PAY 3% OF TOTAL PAY

INCOME TAX: the income tax is decided and deducted from the source depending upon the yearly budget decided by the government.

These ADDITIONS & DEDUCTIONS are then used to calculate the gross salary.

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CHAPTER 2: REQUIREMENTS:
2.1.FUNCTIONAL REQUIREMENTS:
2.1.1. INTRODUCTION:Requirements analysis is usually the first phase of large-scale software development project. It is undertaken after a feasibility study has been performed to define the precise costs and benefits of a software system. The purpose of this phase is to identify and document the exact requirements for the system. The customer, the developer, a marketing organization or any combination of the three may perform such study. In cases where the requirements are not clear e.g., for a system that has never been defined, more interaction is required between the user and the developer. The requirements at this stage are in end-user terms.

THE FIRST PAGE:The first page will consist of a login. That is as soon as the software is run the software will ask for the username and the password. This if correct shall lead to the next page.

THE SECOND PAGE:The second page will allow the admin to ADD, EDIT & DELETE employee. When a new employee is added the admin will enter certain personal details of the employee such as name, department, pan no etcWhen the employee has to be edited then the admin will be allowed to make changes to the employees details depending upon the new details. Deleting an employee would mean that the employee has left the job.

THE THIRD PAGE:The third page will take in the salary details of the employee such as what is the post of the employee? What is his AGP and other allowances. Further we will also require to know whether quarter rent will be deducted or not. Based on this information the gross salary will be calculated by the software and stored into the database.

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THE FOURTH PAGE: Depending upon the values that have been calculated and stored in the database, a salary voucher will be generated which can be handed over to the employee.This payslip contains the salary, all the additions and deductions and finally the net salary.

After the admin is done with his/her work he can simply close the software. 2.2. PERFORMANCE REQUIREMENTS: Stored so that the information is secure .further a backup must also be present in case of a failure.

2.3. SECURITY REQUIREMENTS:

The data that is stored in the data base is highly sensitive and thus it must be protected at all costs. The database must not by any means be accessible to the wrong hands.

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2.4.ER DIAGRAM:

Manager Employee number

Employee

Name

Address Date Started Work For

Department

Department Name

Department no

FIGURE 1: ER-DIAGRAM BETWEEN EMPLOYEE AND DEPARTMENT

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ER DIAGRAM depicting the relationship between an employee and the department in which the employee works. 2)

FIRST NAME

LAST NAME

NAME

ID

DOB

PHONE NO

DESIGNATION EMPLOYEE

GETS

SALARY

HRA MEDICAL ALLOWANCE BASIC CCA

DA

INCENTIVE

FIGURE 2: THE ER DIAGRAM BETWEEN EMPLOYEE AND A SALARY.

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2.5.STATE TRANSITION DIAGRAM:

THEY show how the system behaves due to some external event. For this purpose the State Transition Diagram represents the state of the system and the transitions into different states when an external event happens. Similarly, the models will contain a more detailed description of the key processes taking place. The following diagram shows the state transition diagram of the user, which in our project is same as the administrator..

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FIGURE 3 : STATE TRANSITION DIAGRAM OF THE USER.

6.DATA FLOW DIAGRAM:

Level 0 for payroll ststem

1 GET VALID TRANSACTION

2 GET MASTER

PAYROLL 3 CALCULATE EMOLPYEE PAY

4 GENERATE ACCOUNTING ENTERES

5 PRODUCE EMPLOYEE PAY CHEQUE

GENERAL LEDGER

EMPLOYEE

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FIGURE 4: LEVEL 0 DFD FOR PAYROLL SYSTEM

PAYROLL LIABILITY DATA TIME CARDS PAYROLL CALCULATION

EMPLOYEE MASTER FILE

PAYROLL PROCSESSING REPORT

SUPERVISOR TIME DATA

TREASURER

FIGURE NO 5: DATA FLOW DIAGRAM

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CHAPTER 3 : DESIGN OF THE PROJECT

3.1. PAGE1:

FIG NO 6 : FORM 1 This user or the admin to access the project if and only if he enters correct username and password. if the password page shall allow the or the username is incorrect then the following is displayed.

FIG NO 7: ERROR BOX 3.2.PAGE2x This page is the first page that the user/admin will view once he logs into the application. It provides options like adding /editing/deleting employee. It also provides tools like calculator. Options to calculate and print employee slips. The logout option will log the user out of the application. This page is the main page and all the operations will be performed through this page.

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FIG NO 8: FORM 2
3.3.PAGE 3:-

FIG NO 9: FORM 3
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This form will add an employee to the the database emp_personal & emp_off the database is in access and is as shown. TABLE NO 4 : DATABASE TABLE emp_personal emp_personal
emp_co emp_fina emp_lna emp_fana emp_do emp_cont emp_desig emp_address de me me me b act emp_00 SITA GUHA JANAK ASST.PROFES 01/12/19 09876543 TILAKNAGAR,BIK 1 SOR 65 211 ANER emp_00 GEETA RAMAN AMBROSE ASSOCIATE.P 12/3/197 09807878 VYAS COLONY 2 RFF 8 654

TABLE NO 5 : DATABASE TABLE emp_off emp_off

emp_co emp_depart emp_lp emp_up emp_a emp_pan emp_job emp_bacc de ment ay ay gp no emp_00 IT 01/01/20 10000 20000 3000 #457JU8 1234567898 1 00 9 646 emp_00 CS 09/03/20 8000 16000 2400 #789JH9 1221383893 2 02 8 299 emp_pfacc 346789643 257 298080922 309

3.4.PAGE NO 4
This allows us to search by employee code and retrieve the values from the database. Make the necessary changes and save them back into the database. Further the reset button allows us to remove all the values that are already stored in the various textboxes. If there is no value in the employee code box and we try to retrieve the vaues then it will result in an error.

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FIG NO 10: FORM NO 4

3.5.PAGE NO 5

FIG NO 11: FORM NO 5

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This form takes in the value of the emp_code from the user and will delete the employee from the database.

3.6.PAGENO 6 :-

FIG NO 12:- FORM NO 6

This form will take in the employee code and will generate the monthly slip as shown.

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CHAPTER 4:TECHNOLOGY (TOOLS & TECHNIQUES)

4.1.SOFTWARE AND HARDWARE REQUIREMENTS

4.1.1Software Requirements: OS: Windows XP, VISTA WIN7. COMPILER & IDE: MICROSOFT VISUAL STUDIO 2008 WITH 3.5 FRAMEWORK[1]. FRONTEND: C# LANGUAGE[2]. BACKEND: 2003[3]. MICROSOFT OFFICE ACESS

4.1.2.Hardware Requirements PROCESSOR: Intel Core 2 Duo Processor T6400 RAM: 3 GB KEYBOARD: 86 Keys Keyboard HARD DISK: 160GB

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CHAPTER 5 :LIMITATIONS:
The project is a windows application. Hence it can run only on those systems on which it is manually installed. Since it is a windows application it is not present on the internet and thus the employees cannot access the details of their salary. Every year in the month of July the budget is declared. Where there are changes in the income tax. Hence this project has to be annually upgraded according to the norms of the budget. This project is being developed only for employees of a college hence it cannot be used by any other enterprise except a college.

5.1.HARDWARE LIMITATIONS:
The other big problem associated with in sourcing payroll is that it forces companies to take on the burdens associated with hardware upgrades as well as the personal costs linked to system maintenance.. Hardware may have to be purchased for data storage and processing.

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REFRENCES / BIBILOGRAPHY :
INTERNET SOURCES: BOOKS: SOFTWARE ENGINEERING-SHALINI PURI. PRESSMAN SOFTWARE ENGINEERING. GOOGLE.COM SCRIBD.COM AUTHORSTREAM.COM WILKIPEDIA.

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