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In a company, 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 perspective, 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.
A payroll system involves everything that has to do with the payment of employees and the filing of ¬employment taxes. This includes keeping track of hours, calculating wages, withholding taxes and other deductions, printing and delivering checks and paying employment taxes to the government. The payroll system starts when a company hires its first employee. Generally, the more dependents you have, the less income tax you have to pay. You must also keep track of the employee's critical personal information, like the address to which checks are sent, or in the case of direct deposit, the bank information and account number where the money is wired. All of this information is highly sensitive, meaning that a good payroll system should also be very secure. Withholding and paying taxes is one of the most important responsibilities of the payroll system.


Background of the Study

The history of the checking system is complex, and no one person or culture can be credited with inventing the check. Ancient Romans used banking systems, where written notes, called "attributio," could be drafted against a person's account. Because commerce and bankers were not considered respectable, these banks were not organized or widespread. In the early 12th century, the Knights Templar began one of the first widespread banking systems. People would drop off their money in one of the Templar's stations, and claim it at another station with a handwritten paper claim draft. These drafts were the precursor to the modern check. In the early 1500s, Dutch merchants would deposit their money with cashiers, and write draft notes authorizing them to pay their debts from the deposits. This was seen as a safe alternative to carrying large sums of money, and eventually spread to other parts of Europe. The British began putting serial numbers on bank draft notes in the 1700s. According to, the use of the word "checks" may have originated at this time, because the serial numbers could be used to "check" one's account.
Businesses incur a variety of expenses and must keep meticulous financial records. Since the development of writing in the ancient world, businesses have been keeping records of their financial transactions. The United States tax system requires that business keep accurate payroll records for tax purposes. Payroll is one of the largest expenses incurred by a business. It consists of the wages and salaries any business pays its employees. An employer uses a payroll system to process its payroll. The system allows the payroll representative to process the tasks necessary to ensure accurate and timely paychecks for employees. The payroll system can be in-house and computerized, in-house and manual or outsourced; the employer uses the one that best matches its needs. Timekeeping is an essential aspect of payroll, particularly if hourly employees are present. The payroll system enables the employer to process timekeeping data for each applicable employee. If the system is manual, the payroll representative figures the time by hand. This includes adding up the hours worked as shown on the time card or timesheet. A computerized timekeeping system can transport the time into the in-house computerized payroll system, which includes the use of payroll software.

Statement of the Problem

General Problem
1. How to make payroll system.
2. How payroll software help the employer to account the withholding taxes, deductions and salary of the employee?
Specific Problem
3. How to compute the net income of an employee using payroll system.

Objective of the Problem
The specific goal of this project is to:
1. To create a payroll system.
2. To help the employer records the withholding taxes, deductions and salary of the employee.
3. To calculate the net income of an employee using payroll system.
4. To minimize the manual checking of each daily time record.

Scope and Limitations

The study will covers the process of preparing the pay slip of each employee, monitors under time, late, keeping the records and easily computers the basic pay, ACAPERA, withholding taxes, loans, PAGIBIG, GSIS, PHILHEALTH  and net home pay.

                The study does not cover any other not employee of the Department of Education (DEPEd), Tacloban City Division This is not a group of pay slip. This system is not cover by any deduction that may not belong to the pay slip, and also the other benefits and compensation that not belongs in the Department of Education (DEPEd).