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CHAPTER ONE
INTRODUCTION
BACKGROUND
OF THE STUDY
Computer, the versatile
data processing machine has been found very useful in every human endeavour
since its incursion into many fields of study, industry, business, sciences and
technology in general. Payroll is being prepared by organization, committees,
governments and other business firms, it is also part of account department,
many organization concern. It is used for the preparation of worker’s salary
daily, weekly or monthly.
The payroll module which
helps in data processing, processes monthly pay of all the employees in state
civil service commission. The module maintains staff loans, advances, tax and
other deductions from staff pay. It also performs annual increment on the
salary of qualified staff each month. The payroll list every employee for whom
the computer has produced a payroll chewue and shows for each employee what
deductions are subtracted from gross earnings to arrive at net pay. This report
is reviewed by the manager of the payroll department before the cheques are
released for distribution.
PROBLEM DEFINITION
Over the years, manual method of payroll has been used. This method
has its problems. It has been proven to be very ineffective and inefficient.
Some of the problems are
1. The job of preparing salary payment manually is tedious causes delay
2. As a result of the problem above, manual method have a lot of discrepancies.
3. These methods encourage fraud figures are easily manipulated and changed.
4. The manual method requires people who are competent in mathematics related computation to do a reliable job. As a result people of such are very scarce
OBJECTIVES OF STUDY
The study aims at designing a payroll accounting system that
will help to eliminate mistakes, delay and frauds associated with manual
calculation of workers salaries and entitlements
SCOPE OF THE STUDY
The study aims at designing and implementing a state civil
service commission payroll accounting system Enugu
LIMITATIONS
In the process of carrying out this research work, some factors
tried to hinder the free flow of work. These factors include
1. TIME: Time factors in the sense that the semester was short and as a result combining this work with studies was tedious.
2. FINANCE: Finance were rather on the lean side and as a result it affected the carrying out of the research in that monetary commitment was needed for going to the case study, photocopying document, browsing etc.
3. LUKWARM ATTITUDE OF THE STAFF: The staff of the payroll department were rather hostile and aggressive owing to the fact that the felt if this activity is computerized they might lose their jobs to the compute
ASSUMPTIONS
If the designed new system is implemented it may improve and to
a large extend enhance the activities of processing staff salary payment in
state civil commission Enugu Office
The workers will be
relieved by the tedious tasks facing them in the discharging of their duties.
They will have more time to themselves and also increase their standard of work
DEFINITION OF TERMS
Some of the terms used in this project work area are as defined below:
PAY REGISTER
This is listing of the wages or salary due to employee for pay period.
PAY PERIOD
This means the number of days or weeks for which employee salaries and wages are usually accumulated.
WAGES
This is the Consideration given to employees who provides their services for an hourly rate.
SALARY
This refers to the remuneration of crewing to the employee work at administrative management or clerical level for monthly or annual pay period.
CROSS PAY
This is the sum total amount of employee pay before deduction.
PAYROLL
Wikipedia defines this as the sum of all financial records of salaries for employees, wages, bonuses and deduction.
NET PAY
This is the final salary amount that will be given to the employee after the deductions.
DEDUCTION
This means withholdings from the gross pay for employee.
PAYROLL TAXES
Taxes generally levied by Government base on the salary for the Nation building.
PAYROLL LEDGER
This is a table that shows the calculation pay of employees and the month in which they earned the pay.
PENSION
According to Wikipedia Online Dictionary, “A regular payment made during a person’s retirement from an investment fund to which that person or their employee has contributed during their working life.”
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