Institution of engineering and technology

Department of information technology

Project title:web based payroll system

Section 1 group 6
Name id

1. Samrawit Awunie……………………………..111356

2. Dessie Melaku………………………………103063

3. Aytegeb Endinew……………………………..111235

4. Chalachew Yaregal………………………….111248

5. Ahmed Ali…………………………………111206

Metu, Ethiopia
 Approval

I certify that this project satisfies all the requirements as a project for the degree of
Bachelor of Science.
Name of program coordinator _______ Signature___________

This is to certify that I have read this project and that in my opinion it is fully
adequate, in scope and quality, as a thesis for the degree of Bachelor of Science.

Name of Advisor…………………………….. Signature…………………….

Examining committee members date signature
Examiner 1 ____________ ____________ __________
Examiner 2 ____________ ____________ __________
Examiner 3 ____________ ____________ __________
Examiner 4 ____________ _____________ __________

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 Acknowledgement
At first we would like to thank the most gracious, the merciful Almighty God
for providing us enough strength and patience that carried through the work
and enable me to complete this work. we would like to express our gratitude to
all those who gave us helping hand in completing this term paper. we want to
thank our advisor Mr. ibsa beyene for helping us whenever we needed it the
most. our friends have also supported me in my work. we want to thank them
all for their help, support, interest and valuable hints.

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 Catalog
Acknowledgement..........................................................................................................................................................II
Acronym.........................................................................................................................................................................V
Abstract.........................................................................................................................................................................VI
Chapter one.....................................................................................................................................................................1
1. Introduction.................................................................................................................................................................1
1.1. Background of the organization......................................................................................................................2
1.2. Background of the project...............................................................................................................................3
1.3. Existing system...............................................................................................................................................4
1.4. Related project.................................................................................................................................................4
1.5. Statement of the problem................................................................................................................................5
1.6. objective..........................................................................................................................................................6
1.6.1. General objective.................................................................................................................................6
1.6.2. Specific objective................................................................................................................................6
General objective...........................................................................................................................................6
Specific objective..........................................................................................................................................7
Scope of the project................................................................................................................................................7
1.7. Methodology...................................................................................................................................................8
1.7.1. Data gathering methods.......................................................................................................................8
1.7.2. System analysis and design approach..................................................................................................8
1.7.3. System development tools...................................................................................................................9
1.8. Feasibility analysis........................................................................................................................................11
1.8.1. Technical feasibility..........................................................................................................................11
1.8.2. Operational feasibility.......................................................................................................................11
1.8.3. Economical feasibility.......................................................................................................................12
1.8.4. Legal feasibility.................................................................................................................................12
1.8.5. Schedule feasibility...........................................................................................................................12
1.8.6. political feasibility.............................................................................................................................13
1.8.7. Cultural feasibility.............................................................................................................................13
1.8.8. Financial feasibility...........................................................................................................................13
1.9. Scope and limitation of the project...............................................................................................................13
1.9.1. Scope of the project...........................................................................................................................13
1.9.2. Limitation of the project....................................................................................................................14
1.10. Significance /target group and benefits of the project........................................................................14
1.10.1. Significance/target group.................................................................................................................14
1.10.2. Benefits of the project.....................................................................................................................15
1.11. Work break down structure.........................................................................................................................15
1.12. Budget plan.................................................................................................................................................15
References.....................................................................................................................................................................15

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 Acronym

Definition of some terms

Payroll. Is a paymaster’s or employer’s list of those entitle to pay and of the amounts

due to each. And it is also the sum necessary for distribution to those on a payroll.

Paycheck. A check for salary or wages made out to an employee.

Pay slip. A note given to an employee when they have been paid, detailing the

amount of pay given and the tax and insurance deducted.

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Abstract

The “Web-based payroll system” is a web-based system that handles and calculates
the payment of employee wages, salaries, bonuses, net pay, and deductions. The goal
of the research is to develop a web-based payroll system that handles employee
accounting activities such as wages, salaries, bonuses, net pay, and deductions, among
other things. It emphasizes the value and advantages of a web-based payroll system
for paying staff in a separate organization or for end customers. The system covers the
process of preparing each employee’s pay slip, both regular and work order
employees, keeping records safe, and computing each employee’s precise earnings, as
well as the employee’s saved report list, which includes monthly salary, basic salary,
overtime, Net pay, and deductions, as well as the employee’s saved report list.This
project’s purpose is to fill up the gaps left by the previous one.

Chapter one

1. Introduction
Payroll refers to the administration of employees' salaries, wages, bonuses, net
pay, and deductions. It consist of the employee ID, employee name, date of
joining, daily attendance record, basic salary, allowances, overtime pay, bonus,
commissions, incentives, pay for holidays, vacations and sickness, value of meals
and lodging etc. ,

A Web-based application is any program that is accessed over a network

connection using hypertext transfer protocol (HTTP), rather than existing within a
device’s memory. It is a software package that can be accessed through the web
browser. A web-based system provides access to a software system using a
computer and internet connection.

Web based payroll system is an application that a company

1.1. Background of the organization

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1.2. Background of the project

Payroll management is a very common task for any business which has a number of
employees. Though the method differ from organization to organization. It is difficult
in manual system using ledger books to keep track of every single employee’s salary
history, calculate whether it is time to increment and to calculate other things like
conveyance allowance, overhead, bonus and finally the salary could be determined.
This pen and paper based system is much time consuming and there is a great chance
to make mistake as there are very good number of employees in this organization and
keeping patience is a tough job to manipulate so many things. Unauthorized persons
however, easily accessed the paper system and hence making it impossible to keep
secrecy and confidentiality. So such a system is time consuming, prone to errors of
entry and analysis resulting from the fatigue of the users.

Now if we view the system from the other employees’ (who are the end user of the
system) point of view, then the system is also monotonous. Because if one employee
wants to check his/her statistics of the salary record then it is very difficult to get it
without any help of automated system.

1.3. Existing system

The current payroll management system is of ineffectiveness and inefficiency that had
far fetched impact on the decisions taken by management. The system, which was
manual that is based on paper based to calculate salary and other information of
employees, keep records of these data and analyze results had weakness that needed
IT based solutions. The system was characterized by delays and sometimes failure to
access historical records, errors were witnessed in entry and manual analysis of
results, secrecy and confidentiality of records lacked because unauthorized persons
could easily access the records. Therefore, management decisions were not taken
based on facts. Under such a system, another challenge to management was quick
generation of reports pertaining to the big number of employee base. Indeed the
application of IT-based solution in improving the system was imagined. Therefore,
the existing system was reviewed and an effective payroll management system

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designed to assist management in implementing its strategic plan in order to achieve
the overall mission, goals and objectives.

Concerned persons of current system state that the traditional methods of payroll
management have resulted into incomplete and inaccurate data in many cases.
Incompleteness has resulted from lack of printed forms, unwillingness of staff to
complete forms as it is time consuming and sometimes loss of completed forms prior
to data entry.

1.4. Related project

We refer researches, studies, and other literature of many researchers, which have

significant relevance on the variables included in the research. It focuses on several

aspects that will help in the development of the study.

Payroll

According to David Rietsema (2013), payroll is the process by which employers pay

an employee for the work they have done. Any business with employees should have

a payroll established. Although, payroll seems like a mundane task, it involves many

aspects including, withholding taxes from each paycheck and making sure accurate

funds are paid to the correct government agency.

Payroll System

On the other hand, Payroll System is a software which organizes all the tasks of

employee payment and the filing of employee taxes. Choosing a payroll system that

fits your business is essential. It may be difficult to decide which system to choose,

but there are some factors to keep in mind when deciding. Analyzing the size of the

business is a must and how much the budget that the owner are willing to spend on

payroll processing.

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1.5. Statement of the problem

Problems of the manual system are mentioned below:

 Preparation of employee details is very difficult and time consuming.
 Preparation of payment slips is very difficult and time consuming.
 Record keeping of employees detail for every month is very difficult
 Lot of paper work has to be done for maintaining the record files.
 Storage is also a big problem.
 Security is also a very big problem of the manual system.
 No back up of information.
 Time consuming.

 Likely to have an error.

1.6. objective

There are general and specific objectives

1.6.1. General objective

The general objective of this project is to develop web based payroll management
software.

1.6.2. Specific objective

Specific objectives are the sub tasks that pave the way to reach at our main goal. They
are supporters of the general objective.

 Study the existing system and identify its problems.

 Design the system as per user requirement specification.
 Develop user friendly interfaces.
 Develop the website as per the business rules
 Creating a different access roles in the system
 Develop a database for the recording system.
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  Testing the system to overcome the system functions
 Generate different reports as per the demand of the organization

1.7. Methodology

1.7.1. Data gathering methods

The method of gathering that is used on this project includes Interview,Observation

and document analysis to collect/gather information and data of the existing system to
develop new system.

Observation: we would look and examine how the workers are doing their work so
that we could understood the existing system. We will observe the actual work.

Interview: we contact the representative of the organization and then exchange some
ideas about their current system, how it has been working and the structure of the
organization. As general we gather enough data in order to prepare our project.

internet: searching the document available in the organization and by visiting the
web site of the organization.

1.7.2. System analysis and design approach

our team decided to use object oriented system analysis and design(OOSAD)
methodology because of the following reasons: -

Simplicity: -software object model real world objects, so the complexity reduced and
the program structure is very clear.

Increased extensibility: -when you need to add new feature to the system you only
need to make changes in one part of the applicable class.

Modifiable: - it is easy to make minor changes in the data representation or the

procedures in an object oriented program.

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 Object Oriented Analysis (OOA): - During this phase we will use to
model the functions of the system (use case modeling), find and identify
the business objects, organize the objects and identify the relationship
between them and finally model the behavior of the object.

Object Oriented Design (OOD): - During this phase we will use to

refine the use case model to reflect the implementation environment,
model object interactions and behaviors that support the use case scenario,
and finally update object model.

1.7.3. System development tools

1.7.3.1. Hardware Requirements

 Computer/laptop:1 GB RAM 500GB HD or higher.

 Flash disk
 Printer
 External Hard Disc

1.7.3.2. Software Requirement

 Languages: HTML, PHP, JavaScript

 edrowmax: to draw unified modeling diagram. Such as sequence
diagram, activity diagram, use case diagram and class diagram.
 Microsoft word: to write our system documentation.
 Notepad++: to write the code.
 Web browsers: mozilafirefox, Google chrome, safari; to run our
implementation
 Wamp web Server: - to simulate the server side activities.
 Operating System: Windows 10
 Interface Design: HTML, CSS, and Adobe photo shop
 Server: Apaches server: for web server software
 Microsoft PowerPoint: for presentation.

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  Server side scripting language: we have selected php for server side
scripting

1.8. Feasibility analysis

Before developing this project we need a feasibility study to understand whether the
project would be successful or not. Feasibility study is detailed analysis of any
system. The two criteria to judge

1.8.1. Technical feasibility

The technical feasibility is focused on gaining an understanding of present technical

resource of the organization their applicability to the expected needs of the proceed
system. It is an evaluation of the software and hardware it meets the needs to the
proposed system.

We use HTML with PHP language for writing code with the back-end MySQL server
database, Microsoft word for writing documentation, browser for displaying, so
hopefully we will develop successfully by using academic knowledge. The system is
going to be deployed and will be testable, since it is technically feasible.

1.8.2. Operational feasibility

This feasibility test asks if the system will work when it is developed and installed.

Operational feasibility in this project: The proposed system offers greater level of
user-friendliness. The proposed system produces best results and gives high
performance. It can be implemented easily. So this project is operationally feasible.

1.8.3. Economical feasibility

Economical Feasibility deals about the economical impact faced by the organization
to implement a new system. Financial benefits must equal or exceed the costs. The
cost of conducting a full system, including software and hardware cost for the class of
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application being considered should be evaluated. Economic Feasibility in this
project:

 The cost to conduct a full system investigation is possible.

 There is no additional manpower requirement.

 There is no additional cost involved in maintaining the proposed system.

1.8.4. Legal feasibility

Determines whether the proposed system conflicts with legal requirements, e.g. a data
processing system must comply with the local Data Protection Acts.

1.8.5. Schedule feasibility

. Schedule feasibility is a measure of how reasonable the project timetable is.

1.8.6. political feasibility

we assure that the proposed system is fully free from being the case of any threats
disorders and other illegal acts and it will work together with the government without
any disparity that contradict the law because the final goal of this system is to
improve processes that makes government work easy, and develops our country.

1.8.7. Cultural feasibility

In this stage, the project's alternatives are evaluated for their impact on the local and
general culture. For example, environmental factors need to be considered and these
factors are to be well known. Further an enterprise's own culture can clash with the
results of the project.

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1.9. Scope and limitation of the project

1.9.1. Scope of the project

The scope of the project is about tasks that will be performed throughout the system.

The proposed system focuses only employee management system on the following areas:

 Calculating net salary and delivering to employee.

 Print and/or save payslip of each employee

 Updating employees information as well as weekly salary,cash advance

 Updating or streamline the rate per day,salaries,

 Calculating Net pay,Gross payment,Overtime

 Updating deduction such as withholding tax and SSS

 Adding up with a log-in log-out process for security purpose.

 Moreover,with help file can be used by the user to know how to use the
payroll software.

 Recording of employee information or details.

1.9.2. Limitation of the project

The limitations of the application are as follows:

1. Different database connection procedure is complex. Here we used only
MYSQL database.
2. No such encryption algorithms.

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1.10. Significance /target group and benefits of the project

1.10.1. Significance/target group

The following people or groups will benefit from this research:

Organization/company: delivering payrolls and monitoring employee records,

paying tracking with those records understanding that an organization can handle a
large number of employees in one location is a dreadful task. Fortunately, this system
accepts all of the tasks listed above, as well as making it a more efficient, accurate,
and effective tool for organizing staff payrolls. This approach allows a corporation to
maximize profit while reducing the amount of labor and additional equipment
required to calculate pay.

Accountant/Payroll system administrator: this will allow them to retrieve and

update employee records more quickly. This will allow them to provide better service,
update their records more simply, and keep track of their employee’s performance.

Employees: they may have confidence in each of their records since the system is
safe; they won’t have to worry about calculating their salary or other accounting or
financial benefits because the system is designed to be more precise and efficient.

Researchers: They will have a better insight and knowledge of the project as a

consequence of the investigation.

Future Researchers: Future researchers will profit from this study since it will serve
as a reference or guide for them as they do their research.

1.10.2. Benefits of the project

Payroll Management System is beneficial in:

 Interact with the software with menu-driven programs with user friendly
interface.
 Manage Employee Information Efficiently.

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  Maintain Allowances (conveyance, festival), deductions, overloads details for
the employees.
 Manage increment of the employees automatically.
 Efficiently manage the advance payment taken by the employees.
 Prepare the detailed salary record of all the employees in an organization.
 Generate Pay-Slip for all employees at the convenience of a mouse click.
 Generate reports according to the requirement of the management.

1.11. Work break down structure

System analyst : Dessie Melaku,samrawit awunie

Coder and tester: aytegeb endinew and chalachew yaregal

System designer :ahmed ali

1.12. Budget plan

Material required Amount Unit price Total cost

(Birr)

Laptop 1 40,000 40.000

Print

Flash Disk 1 250 250

Pen 3 10 30

A4 paper 100 0.50 50

Table 1: Hardware Requirements budget plan

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 References

1. (2012, October 5). Retrieved from Payroll Management Definition:

http://www.entrepreneur.com/encyclopedia/term/82350.html

2. (2012, February 3). Retrieved from Wikipedia: http://en.wikipedia.org/wiki/SQL

3. (2012, January 30). Retrieved from PHP Official Website: http://www.php.net/

4. (2012, June 15). Retrieved from Orange Technolab Website:

http://www.payrollsoftware.co.in/payrollsoftware.htm

5. (2012, March 1). Retrieved from W3Schools Online Web Tutorials:

http://www.w3schools.com/
6. Steven bragg, “Accounting for Payroll” page 42-48, 2004

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