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ABAP-Based Payroll System

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ABAP-BASED PAYROLL SYSTEM FOR
CALAJO RESTO
A Capstone Project
Presented to the Faculty of the
College of Information Techn...
P a g e | 2
November 2016
APPROVAL SHEET
This capstone project entitled ABAP-BASED PAYROLL
SYSTEM FOR CALAJO RESTO, prepar...
P a g e | 3
Computer Science Computer Science
ABSTRACT
Title: ABAP-BASED PAYROLL SYSTEM FOR CALAJO RESTO
Total No. of Page...
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ABAP-Based Payroll System

  1. 1. ABAP-BASED PAYROLL SYSTEM FOR CALAJO RESTO A Capstone Project Presented to the Faculty of the College of Information Technology and Computer Science University of the Cordilleras In Partial Fulfillment of the Requirement for the Degree BACHELOR OF SCIENCE IN INFORMATION TECHNOLOGY by RAPHAEL TADEO CACAS GAMALIEL ALIWENG SALINAS
  2. 2. P a g e | 2 November 2016 APPROVAL SHEET This capstone project entitled ABAP-BASED PAYROLL SYSTEM FOR CALAJO RESTO, prepared and submitted by RAPHAEL TADEO CACAS and GAMALIEL ALIWENG SALINAS in partial fulfillment for the degree of BACHELOR OF SCIENCE IN INFORMATION TECHNOLOGY has been examined and is recommended and approved for oral examination. MARIE GRACE V. ORTIZ, MIT Adviser Capstone Project Committee RAYMUND E. DILAN, DIT MARIE GRACE V. ORTIZ, MIT Chairperson Member PANEL OF EXAMINERS APPROVED by the Committee on Oral Examination on ________________________________ with a grade of ________. RAYMUND E. DILAN, DIT MARIE GRACE V. ORTIZ, MIT Chairperson Member ACCEPTED AND APPROVED in partial fulfillment of the requirements for the degree of BACHELOR OF SCIENCE IN INFORMATION TECHNOLOGY. ANNA RHODORA M. QUITALEG, MIT JEFFREY S. INGOSAN, MCS Department Head, College Dean, College of Information of Information Technology and Technology and
  3. 3. P a g e | 3 Computer Science Computer Science ABSTRACT Title: ABAP-BASED PAYROLL SYSTEM FOR CALAJO RESTO Total No. of Pages: 150 Authors: RAPHAEL TADEO CACAS GAMALIEL ALIWENG SALINAS Type of Document: Capstone Project Type of Publication: Unpublished Accrediting Institution: University of the Cordilleras Gov, Pack Road, Baguio City CHED – CAR Keywords: Information Technology (IT), Enterprise Resource Planning (ERP), System Applications and Product (SAP), Accelerated SAP (ASAP), Advance Business Application Programming (ABAP) Abstracts: Rationale / Background As technology advances throughout the years, almost everything that people know right now are all related or connected to the advancement of technology. Because of this, it makes life easier if not, even better in some ways that only technology can make it happen. Behind the scenes where users are using technologies every day in a life of a person, there are people who study, innovate and develop it in a better way. These people are the geniuses who made it happen and some of them are the Information Technology (IT) experts all around the world. Researchers’ studies and researches the facts that by using technology, one company can minimize cost, minimize risk or even eliminate errors and enhance its capabilities. The implementation of a payroll system can benefit a company’s payroll to be up-to-date, fast tracked, reliable, and error-free. So, implementing an ABAP-Based Payroll System for Calajo Resto is a must and significant. The new system can improve business processes in an organization
  4. 4. P a g e | 4 Summary This project study is entitled ABAP-Based Payroll System for Calajo Resto. The primary aim of this project was to design and develop a Payroll System that would help the Calajo to conduct efficient and effective payroll system. It answered the following objectives: 1. to identify the features of the proposed payroll system for Calajo Resto; 2. to determine the cost and technical requirements to implement the proposed payroll system for Calajo Resto; and 3. to identify the user acceptance level of the proposed payroll system for Calajo Resto. Conclusion The following are the conclusions drawn from the findings discussed in Chapter 3: 1. The features of the proposed system are Data Storage, System Security, Logging in and Out, Employee Timesheet, Leave Approval, Cash Advance, Main Menu, Loan, Employee Maintenance, Deductions Maintenance, Benefits, User Accounts, Payroll Summary, and Remittances. 2. The cost requirements totals Php 1,245,765.00. The software requirements are Windows 7, Microsoft SQL Server 2014, and SAP ECC 6.0. The hardware and software requirements in order to make the implementation of the proposed system smooth and successful shall be followed. 3. The user acceptance level of the proposed payroll system is 6.2 for the usefulness, 6.2 for the ease of use, 6.3 for the ease of learning, 6.2 for the satisfaction, and 6.23 for the general average. This proves that the expected users strongly agree that the proposed Payroll System can help the company and its employees to be more efficient and more productive. Recommendations The following are the recommendation that may be considered to enhance the proposed system:
  5. 5. P a g e | 5 1.The system can be upgraded with other functions and features that are possible to be added such as changing of passwords and uploading of documents such as resumes. 2. System maintenance is required specially when there are errors and malfunctions of the system. For maintenance and for security purposes, it is recommended that the Manager hires a knowledgeable administrator. 3. The user-friendly interface is recommended so that the users can easily learn how to use the system, thus improving the user’s productivity and efficiency.
  6. 6. P a g e | 6 ACKNOWLEDGEMENT The researchers would like to express their deepest gratitude to all the people who have significantly contributed and help them towards the success of the research. The researchers would like to thank their adviser Ms. Mary Grace V. Ortiz who accommodated all the researchers’ queries, all the researchers’ shortcomings, who guided the creation of the capstone project, and for giving ideas that gave them better insight on how to do the payroll system. The researcher would like to thank their panelist Dr. Raymund E. Dilan who dedicated their time and gave their suggestions to make this capstone project better. Ms. Joan Peralta and Dr. Raymund E. Dilan, the researchers’ teacher-in-charge for both capstone 1 and capstone 2. The researchers would like to express their warm gratitude for their guidance since the beginning to the end of this project. Last but not the least; the researchers would like to express their most sincere gratitude to their family, for the love and support that they’ve given. This study would never be completed without the help of the researchers’ parents. R.T.C.
  7. 7. P a g e | 7 G.A.S. DEDICATION This project is dedicated to the family of Raphael T. Cacas and Gamaliel A. Salinas who had supported us all the way since the beginning of our study. Finally, this project is dedicated to all those who believe in the richness of learning. R. T. C. G. A. S.
  8. 8. P a g e | 8 TABLE OF CONTENTS Page TITLE PAGE.....................................................1 APPROVAL SHEET ................................................2 ABSTRACT.......................................................3 ACKNOWLEDGEMENT................................................6 DEDICATION.....................................................7 TABLE OF CONTENTS..............................................8 LIST OF FIGURES...............................................10 LIST OF TABLES................................................13 Chapter 1 INTRODUCTION Background of the Study........................15 Company Profile................................30 Purpose of the Study...........................32 Objective of the Study.........................33 Definition of Terms............................34 2 METHODOLOGY Software Development Methodology...............37 Scope and Delimitation of the Study............40 Data Gathering Techniques......................42 Sources of Data................................42
  9. 9. P a g e | 9 3 DISCUSSION AND FINDINGS Features of the Proposed System................45 Cost and Technical Requirements................82 System Design..................................87 User Acceptance Level.........................102 4 CONCLUSION AND RECCOMENDATIONS Conclusion....................................105 Recommendations...............................106 APPENDICES A Communication Letter...............................107 B Interview Transcript...............................108 C Survey Questionnaire...............................120 D Answered Survey Questionnaire......................122 E Individual Payslip ................................132 F Payroll Summary Register ..........................133 G Ghantt Chart.......................................134 H Employee’s Daily Time Record.......................135 I Frequency Table....................................136 REFERENCES...................................................138 CURRICULUM VITAE.............................................143
  10. 10. P a g e | 10 LIST OF FIGURES Figure No. Figure Title Page 1 Calajo Resto Organizational Structure..........33 2 ASAP Methodology Roadmap.......................38 3 As-is Process Model of the Current Recording Employees’ Daily Time Record.........46 4 As-is Process Model of the Current Compute Employees’ Salary..............................48 5 As-is Process Model of the current Recording Employees’ Late, Absences and Undertime........49 6 As-is Process Model of the Cash Advance........54 7 As-is Process Model of the SSS Loan Application....................................55 8 Ishikawa Diagram...............................57 9 To-be Process Model of the Manage Employee Daily Time Record..............................59 10 To-be Process Model of the Maintain Deduction......................................59 11 To-be Process Model of the Generate Reports........................................60 12 To-be Process Model of the Maintain Allowance......................................60 13 To-be Process Model of the Maintain User
  11. 11. P a g e | 11 Account........................................61 14 To-be Process Model of the Maintain Employee.......................................61 15 To-be Process Model of the Log-in..............61 16 To-be Process Model of the Process Employee Payroll .......................................62 17 To-be Process Model of the SSS Loan Application....................................63 18 Log-in Screen..................................64 19 Employee Timesheet Screen......................65 20 Employee Timesheet Account Validation Screen.........................................66 21 Employee Leave Application Screen..............66 22 Individual Payslip Screen......................67 23 Individual Payslip Reports Screen..............67 24 Main Menu Screen...............................68 25 Loan Screen....................................69 26 Leave Approval Screen..........................70 27 To-be Process Model of the Cash Advance........71 28 Cash Advance Screen............................71 29 Employee Maintenance – Active Employees Screen.........................................72 30 Employee Maintenance – Inactive Employees Screen.........................................73
  12. 12. P a g e | 12 31 Deductions Maintenance – Employee Contribution Screen.........................................74 32 Deductions Maintenance – Withholding Tax Screen.........................................75 33 Benefits – Leave Screen........................75 34 Benefits – Allowance Screen....................76 35 Benefits – Employee Allowance Screen...........76 36 Benefits – Holiday Screen......................77 37 User Accounts Screen...........................78 38 Payroll Summary Screen.........................79 39 Payroll Summary Reports Screen.................79 40 Remittances Screen.............................80 41 Remittances Report – SSS Contribution Screen...80 42 Remittances Report - PhilHealth Contribution Screen.........................................81 43 Remittances Report – Pag-Ibig Contribution Screen.........................................81 44 Remittances Report – Taxes Withheld on Compensation Screen............................81 45 Network Infrastructure.........................87 46 Part I – Star Schema...........................88 47 Part II – Star Schema..........................89
  13. 13. P a g e | 13 LIST OF TABLES Table No. Table Title Page 1 SSS Contribution Table 2016...................51 2 PhilHealth Contribution Table 2016............52 3 Pag-Ibig Contribution Table 2016..............53 4 BIR Semi-Monthly Withholding Tax Table 2016...53 5 Software Requirements.........................82 6 Hardware Requirements ........................83 7 Budget Plan...................................86 8 Accounts Table ...............................90 9 Allowance Table...............................90 10 BIR Table.....................................91 11 Cash Advance Table............................91 12 Cash Paid Table...............................92 13 Contribution Table............................92 14 Daily Time Record Table.......................93 15 Employee Allowance Assigned Table.............94 16 Employee Leave Table..........................94 17 Employee Loan Table ..........................95 18 Employee Table................................96 19 Employee Tardiness Earned Table...............97 20 Holiday Master Data Table.....................97 21 Inactive Employee Master Data Table...........98
  14. 14. P a g e | 14 22 Leave Master Data Table.......................99 23 Employee Paid Loan Table......................99 24 Employee Withholding Tax Table...............100 25 Payroll Register Table.......................101 26 Employee Remittances Table...................102 27 Weighted Mean Definitions....................103 28 Mean Average.................................103
  15. 15. P a g e | 15 Chapter 1 INTRODUCTION Background of the Study As technology advances throughout the years, almost everything that people know right now are all related or connected to the advancement of technology. Because of this, it makes life easier if not, even better in some ways that only technology can make it happen. Behind the scenes where users are using technologies every day in a life of a person, there are people who study, innovate and develop it in a better way. These people are the geniuses who made it happen and some of them are the Information Technology (IT) experts all around the world. According to Rendulić (2015) that information technology (IT) is a technology which uses computers to gather, process, store, protect, and transfer information. Today, it is common to use the term Information and communications technology (ICT) because it is unimaginable to work on a computer which is not connected to the network. Information technology in general and information systems in particular deserve an important role in business process management, because more and more activities that a
  16. 16. P a g e | 16 company performs are supported by information systems. Business process activities can be performed by the company’s employees manually or by the help of information systems. There are also business process activities that can be enacted automatically by information systems, without any human involvement (Weske, 2013). Modern society is characterized by sudden growth and development of information technology (IT) resulting in large depeb bbhndence of the society, in a wider sense, on the individual knowledge and competence of a person in the IT area. Although this dependence grows on daily basis, the human right to education and information is not extended to IT area (Rendulie, 2015). According to the “Basic Concepts of Information and Communication Technology” (2015), Information technology (IT) is a technology which uses computers to gather, process, store, protect, and transfer information. Data enters the computer through one or more input devices. The computer then processes the data and transmits the resulting data to output devices. Output devices can be human interfaces such as a screen or another electronic device such as a storage device or computer network. According to Bourgeois (2014), he described information systems as made up of five components:
  17. 17. P a g e | 17 hardware, software, data, people, and process. The first three, fitting under the category technology. But the last two, people and process, are really what separate the idea of information systems from more technical fields, such as computer science. In order to fully understand information systems, students must understand how all of these components work together to bring value to an organization. Bourgeois (2014) stated that computers were now seen as tools to collaborate internally, within an organization. In fact, these networks of computers were becoming so powerful that they were replacing many of the functions previously performed by the larger mainframe computers at a fraction of the cost. It was during this era that the first Enterprise Resource Planning (ERP) systems was developed and run on the client-server architecture. An ERP system is a software application with a centralized database that can be used to run a company’s entire business. With separate modules for accounting, finance, inventory, human resources, and many, many more, ERP systems, with Germany’s SAP leading the way, represented the state of the art in information systems integration (Bourgeois, 2014). Enterprise resource planning (ERP) system has been one of the most popular business management systems, providing
  18. 18. P a g e | 18 benefits of real-time capabilities and seamless communication for business in large organizations (Sep, 2013). According to “What is ERP and Why do I Need It?” (2011) that enterprise Resource Planning (ERP) is an enterprise-wide information system that facilitates the flow of information and coordinates all resources and activities within the business organization. Functions typically supported by the system include manufacturing, inventory, shipping, logistics, distribution, invoicing, and accounting. Some solutions now embed customer relationship management functionality. A wide variety of business activities including sales, marketing, billing, production, inventory management, human resource management, and quality control depend on these systems (“What is ERP and Why do I Need It?”, 2011). According to Rietsema (2016), a Human Resources Management System (HRMS), refers to the systems and processes at the intersection between human resource management (HRM) and information technology. It merges HRM as a discipline and, in particular, its basic HR activities and processes with the information technology field, whereas the programming of data processing systems evolved into standardized routines and packages of enterprise
  19. 19. P a g e | 19 resource planning (ERP) software. To put it another way, Rietsema (2016) stated that a HRIS may be viewed as a way, through software, for businesses big and small to take care of a number of activities, including those related to human resources, accounting, management, and payroll. A HRIS allows a company to plan its HR costs more effectively, as well as to manage them and control them without needing to allocate too many resources toward them. It is vital that the human resource function in organizations is supported by information systems to be able to deliver services and improve operations. Human Resource Information Systems (HRIS) provide a means of acquiring, storing, analyzing and distributing information to various stakeholders. HRIS enable improvement in traditional processes and enhance strategic decision making. Process descriptions in the human resource function indicate how HRIS supports the organization’s processes with relevant anecdotes under each key process (Chugh, 2014). Payroll is the system where employers work out their employees’ salaries to make correct deductions from their pay. But it’s not as simple as writing a check every two weeks. Employers must be up to date and comply with the
  20. 20. P a g e | 20 laws and rulings regarding employee compensation to avoid disputes and penalties (Ong, 2013). A payroll system is software which organizes all the tasks of employee payment and the filing of employee taxes. These tasks can include keeping tracking of hours, calculating wages, withholding taxes and deductions, printing and delivering checks and paying employment taxes to the government (Rietsema, 2016). According to Singh and Jain (2013), payroll means maintain records of employees. In/Out data updating. Generate Pay slips and distribution. In short "Maintain Employees Data, Distributing Salaries and making all statutory deductions & Payments is called Payroll Processing" is based on payroll implementation and working process of payroll in SAP HR module. Information and database system projects are initiated to improve the accuracy of the processing data and ensure the procedure prescribing how to do a specific task. Singh and Jain (2013) stated that a computer program can maintain accurate and consistent database, hence resulting is an improved performance. The program efficiency can be increased considerably by including automatic calculations and fast data retrieval capabilities. This will dramatically reduce the manual
  21. 21. P a g e | 21 error and permit more study at lower cost and effort. One of the main jobs of admin section is to generate payroll for all the employees and their Payment reports according to Odebunmi (2015). Due to the non-availability of a proper database management system all the data is handled manually. Because of large volume of payroll data and calculations, it is very difficult to handle the data manually and delayed the payroll process. This created an immediate need to develop a new computer based payroll data base system to avoid the delay in generating pay bills, loan schedules, payment reports, pay slips and so on. The payroll program is run at a specific point in time, not only to calculate an employee’s basic remuneration but also any special payments, overtime payments or bonuses. The Payroll Process in SAP begins with the entry and maintenance of data and ends with the “Subsequent Activities” performed after each payroll is completed to satisfaction. According to Rietsema (2016) payroll software often requires very little input from the employer. The employer needs to input employee wage information and hours—then the software calculates the information including withholdings automatically. Most payroll software is automatically updated every time a tax law changes and will remind
  22. 22. P a g e | 22 employers when to file various tax forms. Choosing a payroll system that best fits the business is essential. It may be difficult to decide which system to choose, but there are some factors to keep in mind when deciding. First, analyze the size of the business and how much of the budget the company is willing to spend on payroll processing (Rietsema, 2016). According to Maithanh (2015) while it is possible for smaller businesses to handle payroll duties in-house through a manual process, a lot of time can be wasted attempting to calculate everything correctly. One miscalculation and the business owner could find themselves in legal or financial trouble. Mid-sized companies with up to 100 employees benefit greatly by investing in a payroll system. For small businesses, payroll system software can eliminate errors in the payroll process and eliminate excessive effort involved in put calculating employee hours, wages and tax withholdings. Payroll software is easy to use often times very affordable for small businesses (“Real Business”, 2016). Rietsema (2016) stated that small business owners can purchase an affordable system accessible on their local computer or via a cloud service. Purchasing software
  23. 23. P a g e | 23 eliminates the expense of hiring an in-house accountant for payroll processing. Lastly, small business owners can maintain more control of the payroll process by using software. Using payroll software allows the business to compile reports at whatever pace they desire. In order for the programmers to create these information systems that are currently being used now, they use different kinds of programming languages like the ABAP programming language that is being used in the field of ERP. Rouse (2016) stated that ABAP (Advanced Business Application Programming) is a programming language for developing applications for the SAP R/3 system, a widely- installed business application subsystem. The latest version, ABAP Objects, is object-oriented programming. SAP will run applications written using ABAP/4, the earlier ABAP version, as well as applications using ABAP Objects. SAP's original business model for R/3 was developed before the idea of an object-oriented model was widespread. The transition to the object-oriented model reflects an increased customer demand for it. ABAP Objects uses a single inheritance model and full support for object features such as encapsulation, polymorphism, and persistence (Rouse, 2016).
  24. 24. P a g e | 24 According to Moxon (2012) SAP ABAP is the popular enterprise programming language developed by SAP and used by the biggest organizations in the world to run their business systems. A business system according to Caroll (2014) is a procedure, process, method, or course of action designed to achieve a specific result. Its component parts and interrelated steps work together for the good of the whole. Creating effective business systems is the only way to attain results that are consistent, measurable, and ultimately benefit customers. Pushparaj (2015) also stated that a business system is an organized or complex or whole, combination of things or parts forming a complex or unitary whole. A business system is an established arrangement of components which leads to the attainment of particular objective according to plan. A business enterprise is any type of operation that is involved in providing goods or services with the anticipated outcome of earning a profit. Its broad nature allows the term to be applied to any type of company or firm that is geared toward generating revenue by selling products of any type (“WiseGEEK”, 2016). In order to create an effective information system for a business enterprise, the programmer must be knowledgeable
  25. 25. P a g e | 25 about the programming language that he or she is using and also about the what the system need and the importance of every feature that they will be including in the system that the company will use. Markgraf (2016) states that one of the importance that is needed is to gain the maximum benefits from the company's information system, the company have to exploit all its capacities. Information systems gain their importance by processing the data from company inputs to generate information that is useful for managing the company’s operations. To increase the information system's effectiveness, the company can either add more data to make the information more accurate or use the information in new ways. According to Bender (2016) that every small business owner performs more than one role for his company. One of the most important tasks in running a small business is completing payroll. Employees need to be able to rely on being paid on a consistent basis without delays. Payroll affects every aspect of a small business from the morale of employees to the financial stability of the company. Another important characteristic of payroll is that it allows an employee to feel his net worth within a small company. An employee's total compensation is built into
  26. 26. P a g e | 26 payroll. This includes his salary, benefits and bonuses. Employees typically undergo annual performance evaluations by their supervisors and are rewarded with an increase in salary or a bonus or both. Benefits also reflect an employee's worth within a small business. Employees who receive health insurance, life insurance and pension benefits feel they have a higher worth (Bender, 2016). Payroll system is very important especially when it comes to business. While learning about the importance, learning the different features of a payroll system is also important. Every payroll system has its own uniqueness from each other and all of it are not the same which depends upon the company’s need and wants. According to Ray (2016) that there are four features that are included in a payroll system. The first feature is the accuracy which the payroll system must be able to accommodate the employees and their various working hours. Once a good system is in place, the system will have an accurate record of the working hours of the employees. An automated system minimizes the possibility of human error, as the only real factor is whether employees remember to clock in and out. An in-house accountant or bookkeeper, however, can easily make corrections when employees forget to clock out for lunch or when the time clock breaks down.
  27. 27. P a g e | 27 The payroll system functions as a neutral third party that accurately records work hours when the system outsource the payroll functions. The second feature according to Ray (2016) is the deductions which the payroll systems do not simply record work hours and pay. They must be set up for more complex operations, such as deductions for tax and benefits purposes. Between state and federal taxes, Medicare and Social Security, plus whatever benefit plan each employee contributes to, a substantial amount of calculations are needed. Most payroll systems can be customized to accommodate the tax and benefits needs and can be further adjusted for the specific circumstances of each employee. In-house payroll personnel and outside contractors must be thoroughly knowledgeable about which deductions are required under the law. No matter which payroll system that will be used use, however, the users are ultimately responsible for the accurate reporting and paying of payroll taxes. The third feature of a payroll system according to Ray (2016) is the record-keeping which is also another feature of a payroll system is that it can be used to keep detailed and accurate records. These records can be stored in a main database on site, online or in an outside record-keeping
  28. 28. P a g e | 28 facility. Record-keeping can help the users monitor trends such as how much overtime the users are paying and how many employees participate in the company retirement plans. Records also ensure that the users complying with all relevant laws and can prepare the users for an audit or any other type of investigation of the business when the users set up the system to monitor those activities. A payroll system that accurately stores hours makes end-of-year tax preparation smoother as well. The last but not the least feature that must be included in a payroll system is the streamlining according to Ray (2016) which an automated payroll system can help eliminate busywork by streamlining the whole process of scheduling, record-keeping and payment. Employees can access their records, print pay stubs and, in some cases, put in requests for time off through an automated payroll system. Effective payroll systems of all kinds can be standardized and streamlined with advance directions. The company can direct third-party administrators, Computerized systems and in-house bookkeepers to deposit earnings directly into employees' bank accounts, eliminating the need for the company to write personal checks. The company can automate systems to alert the employees when the employees are going into overtime pay or when employees
  29. 29. P a g e | 29 pass a certain amount of allocated time off, what percentage of 401(k) matching payments the companies authorize and how much to take out for health care premiums. There exists a capstone project entitled “ABAP-Based Payroll System for Trikids Food Product” by Cabangon, Carreon and Lacanlale (2016) that focused in the design, development and implementation of an information system with the use of SAP R/3 systems in business processes. The project was focused on the employee timesheet, maintenance, rate, deductions, status, absences report, holidays and rest day maintenance, leave maintenance, payroll maintenance, payroll reports, employee cash advance and absent employee for today. There is another research study which is entitled “Working Process of Payroll in SAP HR Module” by Singh and Jain (2013) that is based on payroll implementation and working process of payroll in SAP HR Module. It includes information and database system projects that are initiated to improve the accuracy of the processing data and to ensure the procedure prescribing how to do a specific task. The program efficiency can be increased considerably by including automatic calculations and fast data retrieval capabilities. This will dramatically reduce the manual
  30. 30. P a g e | 30 error and permit more study at lower cost and effort. One of its features is to run a specific point in time, not only to calculate an employee’s basic remuneration but also any special payments, overtime payments or bonuses. The Payroll Process in SAP begins with the entry and maintenance of data and ends with the “Subsequent Activities” performed after each payroll is completed to satisfaction. The researchers’ studies, researches, and existing system of Calajo Resto supports the facts that by using technology, one company can minimize cost, minimize risk or even eliminate errors and enhance its capabilities. The implementation of the new system can benefit a company’s payroll system to be up-to-date, fast tracked, reliable and Computerized system. The new system can improve business processes in an organization like the payroll. So, implementing an ABAP-Based Payroll System for Calajo Resto is a must and significant. Company Profile The Calajo Resto is a popular restaurant in La Trinidad that became a destination for locals and city folks alike. For the husband-and-wife business tandem, Danny and Eunice Wong, Calajo breathes new life to the popular tourist destination of Benguet. It started as a
  31. 31. P a g e | 31 small eatery in Pines, the first grocery in La Trinidad that Eunice’s mother put up in 1980. When she retired, Danny and Eunice acquired the grocery, while Calajo went to Eunice’s sister and she migrated to Canada and sold them the business as well. The Calajo Resto has three branches of which are located in Km4 Halsema Hwy, La Trinidad, F. Lopez Bldgatan, Session Road and Km6 Betag, La Trinidad. The number of employees in each branch is approximately 15-20 but, Calajo Session Road branch has only fifteen employees excluding the owner’s Calajo Resto sells different kinds of food that can leave something behind to the customers that makes them go come back for more. They serve a variety of food including: giant siopao, dynamite sticks, bird’s nest soup, fish and chips, milkshakes and more. The Calajo owner uses an existing manual payroll system which is computed manually and uses Microsoft Excel to record the payroll of the employees and staff members. With manual calculation, the secretary will record the payroll into the excel before printing the pay slip. The owner will figure-out all wages and required deductions computed by the secretary. The requirements to perform the manual payroll processing is a calculator, blank checks and stationery.
  32. 32. P a g e | 32 The Calajo Resto have an organizational structure which is the same for each three branches. The top of the structure is the company Calajo Resto and below it is the three branches in Session Road, Km4 La Trinidad and Km6 La Trinidad. Below the branches is the Owner who is Eunice Wong. Below the Owner is the Supervisor who is an executive who has overall responsibility for managing both the revenue and cost elements of the company and the person who is responsible in payroll of the company for the three branches. Below the Supervisor is the Assistant Manager and the Kitchen Manager or the Chef. The Assistant Manager handles the position staff who were the servers, hosts and bussers. The Kitchen Manager is the one who handles the position staff and the positions below were the line cooks, prep, dishwashers and pantry. Purpose of the Study This study shall be beneficial to the following entities: To the Owner. This study shall benefit the owner by calculating the payment to the employees and the deductions without an error and also benefited the owner’s operations, income and future costs. To the Employees. This study shall benefit the employees to have their salaries equally distributed and
  33. 33. P a g e | 33 calculated by the system without any miscalculations made. Figure 1 Calajo Resto Organizational Structure To the Researchers. This study benefited the researchers to specify software functions and performance, indicate software interface with other system elements, and establish design constraints that the software must meet. To the Future Researchers. This study shall benefit the future researchers by learning from the data and information gathered from the company. Objectives of the Study This study aimed to design and develop an ABAP-Based Payroll System for Calajo Resto. Specifically, this study
  34. 34. P a g e | 34 aimed to achieve the following: 1. to identify the features of the proposed ABAP-Based Payroll System for Calajo Resto; 2. to determine the cost and technical requirements to implement the proposed ABAP-Based Payroll System of Calajo Resto; and 3. to identify the usability level of the proposed ABAP-Based Payroll System for Calajo Resto. Definition of Terms The following are conceptually and operationally defined for better understanding of the readers. ABAP. ABAP is an Advanced Business Application Programming, originally Allgemeiner Berichts-Aufbereitungs- Prozessor, German for "general report creation processor" is a high-level programming language created by the German software company SAP. Cost Requirements. Cost requirements were the required total expenses that of the company Calajo Resto in order to implement the proposed system which is an ABAP-Based Payroll System. Information System. Information System is a collection of correlative elements that when grouped together shall produce a meaningful result. Information Technology. Information technology is the
  35. 35. P a g e | 35 study or use of systems especially computers and telecommunications for storing, retrieving, and sending information. Payroll System. A payroll system is software which organizes all the tasks of employee payment and the filing of employee taxes. These tasks can include keeping tracking of hours, calculating wages, withholding taxes and deductions, printing and delivering checks and paying employment taxes to the government. SAP. SAP SE is a German multinational software corporation that makes enterprise software to manage business operations and customer relations. Systems Software. A systems software is a type of computer program that is designed to run a computer’s hardware and application programs. The system software is the interface between the hardware and user applications. Technical Requirements. Calajo Resto would need one computer unit for using the proposed system. The implementation of the payroll system would not be possible without the employee who would use the system for the benefit of the company. Other technical requirements are Hard Disk (250-270 GB), Space (220), RAM (2 GB), Processor (Dual Core), Others (Driver CD), Display (1024x768 or higher).
  36. 36. P a g e | 36 Usability Level. The usability level is the measurement of the usefulness, ease of use, ease of learning and satisfaction of the proposed system that helps the company in processing the payroll faster and minimal amount of time is consumed in processing all of the gathered information of the employee that works for the company together with the computation of the payroll system and management of the employee. Job Sheet. A job sheet is a page of instruction to aid a worker in performing a task which is also called instruction card. Allowance. An allowance is an amount of money given or allotted usually at regular intervals for a specific purpose. For example, a company employee may be given an allowance or per diem to provide for meals and travel when working away from home and may then be required to provide receipts as proof. Remittance Report. A remittance report is a regular update provided to investors from the Master Servicer in certain types of loan and bond securitization deals. The report details the performance of the collateral (generally loans and securities) which back the securities issued through the securitization trust. Undertime. Undertime is the number of hours that the
  37. 37. P a g e | 37 employee did not work during working hours. Chapter 2 METHODOLOGY This chapter presents the software development methodology to be used in this study, the scope and delimitation of the study, the data gathering techniques, the sources of data and the software development tools. Software Development Methodology The researchers used the Accelerated Systems Application and Products in Data Processing (ASAP) methodology to serve as a guide in the design and development of the proposed ABAP-Based Payroll System for Calajo Resto. The researchers chose the accelerated SAP methodology because the ASAP is an approach that is followed while implementing regular SAP projects. The ASAP is SAP’s standard implementation methodology. It contains the Roadmap, a step-by-step guide that incorporates experience from many years of implementing R/3. Accelerated SAP contains a multitude of tools, accelerators and useful information to assist all team members in implementing R/3. Quality checks are incorporated at the end of each phase to easily monitor deliverables and critical success factors. ASAP is
  38. 38. P a g e | 38 delivered as a PC-based package, so that - if required - an implementation project can begin prior to having an R/3 system installed. Figure 2 ASAP Methodology Roadmap Project Preparation. This is the first step where there will be initiation with a retrieval of information and resources. It is an important time to assemble the necessary components for the implementation. Some important milestones are needed to be accomplished in this phase like setup of project governance, project plan and project schedule are prepared at this stage. In this phase, the researchers identified the project objectives of the study which is to identify the features of the proposed system, determine the cost and technical requirements and identify the usability level of the proposed system which are the usefulness, ease of use, ease of learning and satisfaction of the proposed system. The researchers also obtained an efficient decision-making process, created an environment suitable for change and re-
  39. 39. P a g e | 39 engineering and built a qualified and capable project team. Business Blueprint. This is the second step where the SAP has defined a business blueprint phase to help extract pertinent information about the company that is necessary for implementation. These blueprints are in the form of questionnaires that are designed to probe for information that uncovers how the company does business. In this phase, the researchers blueprinted each business document with its essential outlines in the future business processes and business requirements by using the data gathering techniques like interview, document analysis and observation. The researchers also made an As-is business process model and To-be business process model which are the Entity Relationship Diagram(ERD) and Business Process Model Notation(BPMN) 2.0. There were questions that were asked to the company that requires them to answer the information needed for creating a system. Realization. This is the third step where the initial programming completed during the base line programming which is based on the information that the researchers provided in the blueprint document. The remaining percentage of the programming that was not tackled during the baseline programming is completed during the finetuning programming. Fine tuning usually deals with the exceptions
  40. 40. P a g e | 40 that are not covered in baseline programming. This final bit of tweaking represents the work necessary to fit the special needs. In this phase, the researchers began to program an ABAP-Based payroll system for Calajo Resto which is broken into two parts. The first part is where the team helped in programming the base-line which is called the baseline programming. The second part is where the researchers fine- tuned the system to meet all of the business and process requirements as part of the fine-tuned programming. Final Preparation. This is the fourth step where it concentrates on the fine tuning of the configuration before Go-live and more importantly, the migration of data from the old system or systems to SAP. This phase was not covered by the researchers because it involves workload testing including the peak volume, daily load, and other forms of stress testing which needed too much time and that might not be finished on time. Go Live and Support. This is the last phase where the Go-live milestone is itself is easy to achieve; a smooth and uneventful Go-live is another matter altogether. This phase was not covered by the researchers since it needed the results or information from phase 4 which was also not included in the study.
  41. 41. P a g e | 41 Scope and Delimitation of the Study This study focused on the design and development of the proposed ABAP-Based Payroll System for Calajo Resto. The objectives of this study is to design and develop the proposed ABAP-Based Payroll System for Calajo Resto. The methodology that was used is the Accelerated SAP methodology. The phases that were covered in the Accelerated SAP methodology are the project preparation, business blueprint and realization. The scope includes all the three branches of the Calajo Resto and includes the payroll system which are the same for each. The proposed ABAP-Based Payroll System for Calajo Resto is expected to generate pay slip of employees, report list of employees, payroll summary, calculation of deductions which were the taxes and gross income, processing of payroll, and employee maintenance. The features of the proposed ABAP-Based Payroll system for Calajo Resto are the conversion of the unused leaves of the employees into cash, computation of the overtime pay, computations of the deductions which includes SSS, Phil Health, PAG-IBIG/HDMF, and withholding tax which are obliged by the government. Salary loans are also included in the deductions which is optional. The benefits that were included in the features were the 13th month pay bonus,
  42. 42. P a g e | 42 leaves and allowances. The phases that weren’t covered are the final preparation and go live and support. Some features that weren’t included in the proposed system were the report of appraisals and evaluation reports of the employee. Data Gathering Techniques The researchers used the following techniques to gather the needed data for the design and development of the proposed system. And its documentation: Interview. This allowed the researchers to conduct series of interviews and gather all the needed information and data about the people who were involved in the chosen company in order to understand the existing payroll system. Document Analysis. This allowed the researchers to conduct a systematic examination of all documents that were currently being used by the chosen company in its existing payroll system. Observation. This allowed the researchers to observe activities related to the existing payroll system in the workplace. The result of observation served as a validation to information gathered during interviews. Sources of Data The following are the sources of data in this study: Owner. The owner of the company was one of the sources
  43. 43. P a g e | 43 of data in the study. The data that were gathered from the owner are the processes of the existing payroll system and how it works, forms that are used is the existing system like the personal data form, overtime or absence approval form, expense reimbursement forms and time sheets. Documents. The documents that were gathered and analyzed are the time sheets, job sheets, time recorders, payroll registers, payslips, employee personal records, wage and tax statements, and salary list. Supervisor. The data that were gathered from the supervisor are the actual step by step processes and ways of the company’s manual payroll system, the things or materials that they use in order to process the payroll and the computations and other variables that they compute and the process on how to give the payment of the employees from the owner. Software Development Tools The following tools were used by the researchers to design and develop the proposed ABAP-Based Payroll System for Calajo Resto. ABAP Workbench. This tool was used in order to develop, test and run ABAP programs. This tool was used in order to develop screens with a large set of available UI controls. These screens are then completed with coding
  44. 44. P a g e | 44 called PBO (process before output) and PAI (process after input) to process business logic like steps before or after the screen is used by the user. Microsoft Project. This was used to create a Gantt chart in which is a chart in which a series of horizontal lines shows the amount of work done or production completed in certain periods of time in relation to the amount planned for those period. Microsoft Visio. This was used to create system overview diagrams which are needed in the proposed system. SAP GUI for Windows / SAP Logon. It is the Windows program that the researchers used to log on to SAP Systems on windows PCs. It mediates between the SAP System and the SAP GUI user interface.
  45. 45. P a g e | 45 Chapter 3 DISCUSSION AND FINDINGS This chapter covers the discussion of the answers for the specific objectives of the study. The researchers have identified the problems and difficulties for the proposed system. It helped the researchers in stating the solutions for the proposed system. Features of the Proposed ABAP-Based Payroll System This covers the features of the proposed ABAP-Based Payroll System for Calajo Resto which included the current existing Payroll System and problems of the existing Payroll System. Current Payroll System of Calajo Resto. The current existing Payroll System of Calajo Resto are the following: 1. Recording of Employees’ Daily Time Record. The three branches of Calajo Resto use daily time record (DTR) to record attendance. Every month the employees have a new DTR sheet that they fill up. The employee writes in the employee’s DTR the name, current month, current year, starting date of filling up the sheet, the hours of time in and time out of work in the regular time column which is
  46. 46. P a g e | 46 the same in the overtime column, and their signature every date. The employee’s DTR sheet have a front and back part. In the front part of the sheet, the dates are only numbered one to fifteen for the first half pay while the back part of the sheet have the dates numbered sixteen to thirty-one. After the first half of the date is filled up, the time keeper and the employee writes the signature and give it to the supervisor to compute the total number of hours worked and the salary. Figure 3 As-is Process Model of the Current Recording Employees’ Daily Time Record 2. Compute Employees’ Salary. If the pay period is already near, the supervisor computes on the cut off period which is on the 10th and 25th day because the pay day of the company is on 11th and 26th day. If the payday falls on a Sunday, the salary is released a day after. During the day
  47. 47. P a g e | 47 of the cut off period, the supervisor collects all the DTR and compute the total hours worked and inputs it in the excel. If the employee worked on an ordinary day and worked for eight hours, the supervisor computes for the daily salary rate. If the employee exceeded eight working hours during an ordinary day, the supervisor computes the overtime pay. The regular pay is the daily rate of the employees. To compute the overtime pay, during an ordinary day, divide the daily rate by eight hours and multiply by 1.25. If the employee is working on a holiday within eight hours, then the daily salary is twice the normal. If the employee exceeds eight hours of working, then the overtime pay is multiplied by 2.6. If the employee is working on a special holiday within eight hours, then the regular pay is equal to daily rate multiplied by 1.3. If the employee exceeds eight hours of working, then the overtime pay is multiplied by 1.69. If the employee is working on a double holiday within eight hours, then the regular pay is equal to daily rate multiplied by three. If the employee exceeds eight hours of working, then the overtime pay is multiplied by 3.9. 3. Recording Employees’ Late, Absences and Undertime. If the employee is late, the number of hours or minutes
  48. 48. P a g e | 48 late is deducted to the regular pay. If the employee has overtime hours, the late hours is deducted to it. For absences, if the employee is absent with approved leave, the employee is paid, but if the employee is absent without approved leave there is no salary. Figure 4 As-is Process Model of the Current Compute Employees’ Salary For employees who did not complete eight hours of work shall be considered undertime. The number of hours or minutes unworked have corresponding deduction to the
  49. 49. P a g e | 49 regular pay. 4. Computation of Employee Benefits. There are two types of employees in the company who are the contractual and full time employees and they get different benefits. The benefits that are mandated by the DOLE are SSS, PhilHealth, and PAG-IBIG. Figure 5 As-is Process Model of the Current Recording Employees’ Late, Absences and Undertime System The other benefits that the employees get are the sick leave, vacation leave, 13th month pay, and holidays. Benefits such as leaves, 13th month pay, holidays, and allowances are added to employee payroll as earnings. Employees can only have five leaves each type in one year.
  50. 50. P a g e | 50 All unused sick and vacation leaves is converted to cash at the end of the year. The 13th month pay of the employee is paid on or before December 25 which is December 1-24. To compute the 13th month pay, the regular pay for each month is multiplied by the number of months that the employee has worked. The computation of holidays is different because there are regular and special non-working holidays. The percentage of the regular holiday is higher than the special non-working holiday. All holidays declared on Sundays don’t have corresponding pay because they don’t work on rest days. Other benefits like allowances which are rice, medical, transportation, meal is computed as earnings of the employees. In order to compute for the SSS, PhilHealth, and Pag- Ibig contributions, the employer looks for the range of the employees’ salary in each of the contribution table. 5. Computation of Employee Deduction. All deductions are deducted to gross pay. The employee deductions include: contribution such as SSS, Pag-IBIG, and PhilHealth; withholding tax like BIR; loans and cash advances and; absences, tardiness and undertime. To compute employee contribution, first, the supervisor looks at the SSS, PhilHealth, and Pag-IBIG table
  51. 51. P a g e | 51 to find the range of compensation of the salary of employees to be able to identify the employee share and employer share. The employee share is deducted to employee salary. The employer share is deducted to employer. Table 1 SSS Contribution Table 2016 The use of the SSS Contribution Table 2016 is to check and compute the total contribution of the employee share and employer share. The employer first needs to check the
  52. 52. P a g e | 52 range of compensation and the monthly salary credit of the employee. After that the employer now checks the employer and employee share in the SSS and finally checks the share in the total contribution. Table 2 PhilHealth Contribution Table 2016 The use of the PhilHealth Premium Contribution Table 2016 is to check and compute the employer share and the employee share in PhilHealth. The employer first checks the salary range of the employee and also the salary base.
  53. 53. P a g e | 53 Then, the employer will now check the total of monthly premium and see the employer and employee share. Table 3 Pag-IBIG Contribution Table 2016 The use of the Pag-IBIG Contribution Table is to check and compute the employer and employee share and the total contribution in monthly compensation. Table 4 BIR Semi-Monthly Withholding Tax Table 2016 The table above shows how income tax on an employee’s compensation is being withheld. This is used to compute income taxes of every employee when employer files the
  54. 54. P a g e | 54 Monthly Remittance of Taxes Withheld on Compensation to BIR (Bureau of Internal Revenue). The employee can only loan to SSS, if the employee is in need of salary, calamity emergency or other loan. In order to loan, the employee goes to the office of SSS and fill up the loan form. After that the employee lets the employer sign the loan form and bring it back to the office of SSS or. Then the office gives a check to the employee. The check that the employee received is named to him or her but it is addressed to the employer. The loan of the employer is deducted during the first half of the pay day. The employee can only avail cash advances on the 2nd and 17th day of the semi-monthly pay period of every month. The employee can only have one cash advance in one month. If the employee acquired three absences in one pay period, then the employee can not avail cash advances and it is a company rule. The employee can only avail a maximum of Php 3,000. Figure 6 As-is Process Model of the Cash Advance
  55. 55. P a g e | 55 If the employee has some leaves left, he or she can avail absences. If the employee is absent with leave, he or she is paid during the day that the employee was absent. But if the employee did not file a leave, then the employee is not paid on the day that the employee was absent. If the employee is undertime, then the regular pay is deducted by the missing minutes or hours of work. If the employee is late and have overtime, then the minutes or hours of being late is deducted to the overtime in order to compensate for the time being late. Figure 7 As-Is Process Model of the SSS Loan Application
  56. 56. P a g e | 56 6. Issuance of Employee Document Reports. The document reports that are being issued in the company are the individual pay slips, employee DTR, and others. Problems Encountered in the Existing Payroll System of Calajo Resto. The main problem encountered in the existing Payroll System of Calajo Resto is the inaccurate and inefficient computation of payroll. These are caused by the following: 1. On Methods. The problems that are encountered in the company in terms of process are the manual encoding of the attendance to Microsoft Excel which may result to errors in the inputs, Microsoft Excel is hard to access which may result to confusion about the application, and duplication of file of employee which the supervisor may pass or compute a different file or an outdated file. 2. On Manpower. Some other employees in the company
  57. 57. P a g e | 57 sometimes neglects the files and attendance record in DTR which may cause problems and errors during the computation of the salary of the employees. Some employees input wrong data in their DTR because they are late or wanted an overtime pay. Another problem that is encountered on manpower is about the lack of employees who are managing the payroll system. This is a problem because there are too many employees that one supervisor is handling in payroll. And this may lead to errors in the computation if the supervisor might rush in finishing the payroll on time. 3. On Machine. The company lacks computer units which causes lack of speed and efficiency in finishing the payroll right on time. Another problem about the materials is about the lack of technology advantages. Figure 8 Ishikawa Diagram
  58. 58. P a g e | 58 The diagram above is the Ishikawa Diagram which shows the causes of the main problem that is encountered in the current payroll system of the company in terms of process, people, materials, and management which is the inaccurate computation of salary and attendance for the employee. Features of the proposed ABAP-Based Payroll System for Calajo Resto. The proposed ABAP-Based Payroll System for Calajo Resto have features that are very essential to the company in dealing their problems with their existing manual payroll system. The features of the proposed ABAP-Based Payroll System
  59. 59. P a g e | 59 for Calajo Resto are the following: 1. Data Storage. The proposed system can store data and information, automatically calculate the salaries of the employees with their bonuses, over time payment and deductions. The system can manage documents such as time sheets, job sheets, time records, payroll registers, pay slips, employee personal records, wage and tax statements, and salary list. 2. System Security. The proposed system is divided into two users. The two users are the administrator and the employees. The two users have different screens and the employee is limited to one. The administrator screen is protected by user authentication in order to avoid it from being accessed by the employees. Figure 9 To-be Process Model of the Manage Employee Daily Time Record
  60. 60. P a g e | 60 Figure 10 To-be Process Model of the Maintain Deduction Figure 11 To-be Process Model of the Generate Reports
  61. 61. P a g e | 61 Figure 12 To-be Process Model of the Maintain Allowance Figure 13 To-be Process Model of the Maintain User Account
  62. 62. P a g e | 62 Figure 14 To-be Process Model of the Maintain Employee Figure 15 To-be Process Model of the Log-in Figure 16 To-be Process Model of the Process Employee Payroll
  63. 63. P a g e | 63 Figure 17 To-be Process Model of the SSS Loan Application
  64. 64. P a g e | 64 3. Logging in and out. It is needed in order to check if the employees are working prior to the designated working load which determines their respective salaries. The system has two accounts for the admin and employees. The admin can access the other features on the system while the employees can’t access other features which is disabled from them. The system records the time of the logging in and out of the employees. The previous time in record is
  65. 65. P a g e | 65 updated and stored into the system. Figure 18 Login Screen 4. Employee Timesheet. In the employee timesheet feature the employee can time in and time out in the
  66. 66. P a g e | 66 system. The records of the I.D., Date, Time In, Time out, Regular Hours, Overtime Hours, Late Hours, Undertime, Regular Pay, Overtime Pay and Deductions are all displayed in the employee timesheet. The employee can apply a leave and view all the used and unused leaves and the what type of leaves that are used. The individual payslip report can also be viewed by the employee on each period that the employee worked. The individual payslip contains the earnings, deductions and salary. There is also an additional feature where the timesheet record can be changed but only the admin can access it. Figure 19 Employee Timesheet Screen
  67. 67. P a g e | 67 Figure 20 Employee Timesheet Account Validation Screen
  68. 68. P a g e | 68 Figure 21 Employee Leave Application Screen
  69. 69. P a g e | 69 Figure 22 Individual Payslip Screen
  70. 70. P a g e | 70 Figure 23 Individual Payslip Reports Screen 5. Main Menu. This feature contains all the transactions, file maintenance, and reports. The
  71. 71. P a g e | 71 transactions contain loan, leave, and cash advance. The file maintenance contains employee maintenance, deductions, benefits, and user accounts. The reports contain individual payslip, payroll summary, remittances, and attendance. This is where the user logs off in their account but only the supervisor and manager can use the admin account. 6. Loan. In the loan feature, the user can add, delete and display existing loan records. It is also used to apply a loan, maintain loan records and check the details of loan records. Figure 24 Main Menu Screen Figure 25
  72. 72. P a g e | 72 Loan Screen 7. Leave Approval. The leave approval feature is used to approve, reject, display, and delete an application record of an employee. In the leave application, the user needs to input the employee I.D., leave type, starting date, ending date, and the reason for having a leave. In the leave reports, the leave type, balance(days), used (days w/ pay), awaiting approval (), and the year. 8. Cash Advance. The cash advance feature is used to add, delete, and display cash advance records. It is also used to apply a cash advance, maintain cash advance records, and check details of cash advance records. Figure 26
  73. 73. P a g e | 73 Leave Approval Screen In the cash advance application, the user needs to input the employee I.D., date granted, and the amount of cash that the employee wants to advance. In the cash advance maintenance, the user inputs the employee I.D. and the period date of the application. In the cash details, the user can see the record details of the applicants which are the employee I.D., Date Paid, Payment, and Date Granted.
  74. 74. P a g e | 74 Figure 27 To-be Process Model of the Cash Advance 9.Employee Maintenance. The employee maintenance feature is used to add, update, delete, display, activate/deactivate records and also check all of the details of active and inactive employees Figure 28 Cash Advance Screen
  75. 75. P a g e | 75 In the active employees feature, the user will input the employee I.D. in order to display the all of the employees who are active and it is also the same in the inactive employees feature. The details in the record are the I.D., First Name, Last, Middle Name, and Birthdate. 10. Deductions Maintenance. The deductions maintenance feature is used to add, update, delete and display contributions record and withholding tax record. The employee contribution feature displays the SSS, PhilHealth, and Pag-Ibig Maintenance. It shows the number, type, start of compensation, end of compensation, employer share, and employee share. Figure 29 Employee Maintenance – Active Employees Screen
  76. 76. P a g e | 76 Figure 30 Employee Maintenance – Inactive Employees Screen
  77. 77. P a g e | 77 The withholding tax feature displays the BIR Tax Maintenance. It shows the number, exemption, start of salary, end of salary, number of dependents, and percentage. 11. Benefits. The benefits feature is used to add, update, delete, and display the records of the benefits which are the leave, allowance, employee allowance, and holiday. In the leave feature, the user creates leave and inputs the leave type, description, limit (in days), and if the leave is convertible to cash (yes or no). The user can also check all the displayed existing records in the maintain leaves. Figure 31 Deductions Maintenance – Employee Contribution Screen
  78. 78. P a g e | 78 Figure 32 Deductions Maintenance – Withholding Tax Screen
  79. 79. P a g e | 79 Figure 33 Benefits – Leave Screen In the allowance feature, the user can create allowance and input the allowance type, description, and
  80. 80. P a g e | 80 amount in cash. The user can also maintain allowances and check all the displayed existing records. In the employee allowance feature, the user can assign employee allowances and input the employee I.D., employee type, allowance, and the effective period. The user can also maintain employee allowances and check all the displayed existing records. In the holiday feature, the user can create holidays and input the date, type, name, regular pay (in percent), and overtime pay (in percent). The user can also maintain holidays and check all the displayed existing records. Figure 34 Benefits – Allowance Screen
  81. 81. P a g e | 81 Figure 35 Benefits – Employee Allowance Screen
  82. 82. P a g e | 82 12. User Account. The user accounts feature is used to add, update, delete, and display records of accounts of users in the system. The user can create a user account and input the employee I.D., username, password, status, and account type. The user can also maintain user accounts and check all the displayed existing records. 13. Payroll Summary. The payroll summary feature is used to display payroll summary reports. In the payroll selection feature, the user inputs the employee type and the period in order to display the existing records within the selected period. Figure 36 Benefits – Holiday Screen
  83. 83. P a g e | 83 Figure 37 User Accounts Screen
  84. 84. P a g e | 84 Figure 38 Payroll Summary Screen
  85. 85. P a g e | 85 Figure 39 Payroll Summary Reports Screen
  86. 86. P a g e | 86 14. Remittances. The remittances feature is used to display, the remittances reports of SSS, PhilHealth, Pag- Ibig, and tax from a certain period. Figure 40 Remittances Screen
  87. 87. P a g e | 87 Figure 41 Remittances Report – SSS Contribution Screen
  88. 88. P a g e | 88 Figure 42 Remittances Report – PhilHealth Contribution Screen Figure 43 Remittances Report – Pag-Ibig Contribution Screen
  89. 89. P a g e | 89 Figure 44 Remittances Report – Taxes Withheld on Compensation Cost and Technical Requirements This section presents and discusses the cost and technical requirements to implement the proposed ABAP-Based Payroll System for Calajo Resto. Technical Requirements. In order to make the implementation of the proposed system possible, the hardware and software requirements and the network plan were identified. 1) Software Requirements. In order for the proposed
  90. 90. P a g e | 90 system to run, the company needs to meet the following software requirements as presented in Table 5. Table 5 Software Requirements SOFTWARE REQUIREMENTS SPECIFICATIONS OPERATING SYSTEM Windows 7 DATABASE PLATFORMS Microsoft SQL Server 2014 APPLICATION SOFTWARE SAP ECC 6.0 The software requirements identified must be installed the in the computers of the company. For the Operating System, it can be Windows 7, Windows 8 or Windows 10. The researchers recommend Windows 7 to be used as the operating system. On the other hand, the SQL server can be Microsoft SQL Server 2008, Microsoft SQL Server 2012, but the recommended is Microsoft SQL Server 2014. SAP ECC 6.0 is used as a base program for SAP ABAP access. 2) Hardware Requirements. In order for the software requirements to run, hardware requirements must also be identified. Table 6 presents the minimum and recommended hardware requirements needed for a successful implementation of the proposed system. Table 6 Hardware Requirements Hardware Minimum Recommended
  91. 91. P a g e | 91 Requirements Specification Specification Hard Disk -250 GB free space -300 GB free space Space -220 GB for installation and 30 GB for software dump -280 GB for installation and 50 GB for software dump RAM -2 GB RAM -4 GB RAM to reduce installation time Processor -Intel Dual Core or core 2 duo processors - Intel i5 and above/AMD Quadcore and above Display -VGA Monitor (Low Resolution) -LED (High Resolution) monitor (1024x768 or higher, 256 colors) Peripherals Mouse and Printer High responsive Mouse and Laser Printer The system requires 250-300 free space for the hard disk in order for the system to have enough space for the additional data that is saved in the system and in also in order for the memory to last longer in occupying some data for years. The system is successfully installed if it has 220 GB – 280 GB for the installation and 30 GB-50 GB for the software dump. The RAM that is needed is 2 GB – 4 GB in order to reduce installation time. The processor that is required is i3 Dual Core – i5 Quad core in order for the system to run smooth and fast. The requirements for display a minimum of VGA monitor which is low in resolution and LED monitor which is high in resolution which displays
  92. 92. P a g e | 92 (1024x768 or higher, 256 colors) It is the required display because the user can open the monitor whole day and saves electricity plus it doesn’t hurt the users’ eyes. Cost Requirements. The cost requirements for the successful implementation of the proposed ABAP-Based Payroll System for Calajo Resto consists of a Budget Plan, Training Plan and Network Plan. 1) Budget Plan. This section presents the budget that will be allocated for the implementation of the proposed system. According to stechies.com, the installation cost for SAP ECC 6.0 is 938,740. The license comes with 2 users and 1 developer with yearly maintenance and free installation. For the MS SQL Server 2014 the price was based from softwaremedia.com. On the other hand, the costs for the hardware requirements were based from asianic.com.ph. According to payscale.com, the minimum salary for an ABAP programmer in the Philippines is around 30,000 per month. The development of the proposed system would take 2 to 3 months. Table 7 presents the exact amounts for the budget allocation of both hardware and software requirements and the development cost. 2) Training Plan. A training plan should be implemented to ensure that the supervisor and manager have the necessary knowledge on how to use and manipulate the
  93. 93. P a g e | 93 proposed Payroll System. Part of the SAP ECC 6.0 package is a free end-user training. Therefore, the implementation of training will not be included in the costing. Table 7 Budget Plan COMPONENT QUANTITY AMOUNT SOFTWARE SAP ECC 6.0 Php 938,740.00 MS SQL SERVER 2014 Php 149,085.00 HARDWARE DESKTOP 3 Php 56,970.00 D-LINK 24 PORT SWITCH 1 Php 4,180.00 SS D-LINK ROUTER 1 Php 6,790.00 CABLES AND CONNECTORS Php 90,000.00 TOTAL Php 1,245,765.00
  94. 94. P a g e | 94 3) Network Infrastructure. The company needed to consist three computer units in order to make the proposed system work. The first computer unit that is needed is the server which is the SAP application and database where the main system and program is stored that makes the payroll system work. The second computer unit that is needed is for the administrator or admin and the admin is the one handling all of the accounts of all the employee including the transaction and other master data that is needed from the employees. The last computer unit that is needed is for the employees and they are the ones who log in and out in order to record their daily time schedule needed to compute their payroll. Figure 45 Network Infrastructure
  95. 95. P a g e | 95 System Design This section presents the database tables of the system as well as the relationship between these tables which is shown in Figure 45 and Figure 46. The Star Schema architecture is the simplest form of dimensional model, which data is organized into facts and dimensions. The star schema is an important special case of the snowflake schema, and is more effective for handling simpler queries. Figure 46 Part I - Star Schema
  96. 96. P a g e | 96 Figure 47 Part II - Star Schema
  97. 97. P a g e | 97 The tables that are presented in the research are the database tables which the researchers used to make the
  98. 98. P a g e | 98 system fully functional. Table 8 Accounts Table Table Name: Y043_ACCNT Function: This table is used for the account of users. Table 9 Allowance Table Table Name: Y043_ALLWNC Function: This table is used for employees’ allowance.
  99. 99. P a g e | 99 Table 10 BIR Table Table Name: Y043_BIR Function: This table is used for BIR. Table 11 Cash Advance Table Table Name: Y043_CASHADVNCE Function: This table is used for employees’ cash advance
  100. 100. P a g e | 100 Table 12 Cash Paid Table Table Name: Y043_CASHPAID Function: This table is used for employees’ paid cash. Table 11 Contribution Table Table Name: Y043_CONTRBTN Function: This table is used for employees’ contribution.
  101. 101. P a g e | 101 Table 14 Daily Time Record Table Table Name: Y043_DTR Function: This table is used for employees’ daily time record.
  102. 102. P a g e | 102 Table 15 Employee Allowance Assigned Table Table Name: Y043_EALLWNC Function: This table is used for assigning employee allowance.
  103. 103. P a g e | 103 Table 16 Employee Leave Table Table Name: Y043_ELEAVE Function: This table is used for employees’ leave.
  104. 104. P a g e | 104 Table 17 Employee Loan Table Table Name: Y043_ELOAN Function: This table is used for employees’ loan.
  105. 105. P a g e | 105 Table 18 Employee Table Table Name: Y043_EMPLOYEE Function: This table is used for employees’ information.
  106. 106. P a g e | 106 Table 19 Employee Tardiness Earned Table Table Name: Y043_ETARDINESS Function: This table is used for employees’ tardiness.
  107. 107. P a g e | 107 Table 20 Holiday Master Data Table Table Name: Y043_HOLIDAY Function: This table is used for holiday master data. Table 21 Inactive Employees Master Data Table Table Name: Y043_INACTIVE Function: This table is used for inactive employees’ master
  108. 108. P a g e | 108 data. Table 22 Leave Master Data Table Table Name: Y043_LEAVE Function: This table is used for the master data of leave.
  109. 109. P a g e | 109 Table 23 Employee Paid Loan Table Table Name: Y043_LOANPAID Function: This table is used for employees’ paid loan. Table 24 Employee Withholding Tax Table Table Name: Y043_WTAX Function: This table is used for employees’ withholding
  110. 110. P a g e | 110 tax. Table 25 Payroll Register Table Table Name: Y043_PAYROLL Function: This table is used for payroll register.
  111. 111. P a g e | 111 Table 26 Employee Remittances Table Table Name: Y043_REMTTNCE Function: This table is used for employees’ remittances.
  112. 112. P a g e | 112 User Acceptance Level The researchers gave questionnaires answered by the user to be able to determine the user acceptance level of the proposed system. The researchers were able to let five employees and one supervisor to use and evaluate the proposed ABAP-Based Payroll System for Calajo Resto. The formula for computing the mean average is: X = summation of w and x W = degree of agreement of the user X = no. of users Table 27 Weighted Mean Definitions
  113. 113. P a g e | 113 WEIGHTED MEAN DESCRIPTION 1.0 - 1.85 Strongly Disagree 1.86 - 2.71 Disagree 2.72 - 3.57 Slightly Disagree 3.58 - 4.43 Neutral 4.44 - 5.29 Slightly Agree 5.30 - 6.15 Agree 6.16 - 7.0 Strongly Agree Table 28 Mean Average Features Mean Average Weighted mean definition Usefulness 6.2 Strongly Agree Ease of Use 6.2 Strongly Agree Ease of Learning 6.3 Strongly Agree Satisfaction 6.2 Strongly Agree General Average 6.23 Strongly Agree The category is interpreted according to the Mean average column of the table presented above. 1) Usefulness. The admin and employees strongly agree with the system’s usefulness with a mean average of 6.2. The system helps them in the processing of payroll: lesser time is consumed in processing the information of the employee, faster computation of the payroll, and proper management of the employee information and records. 2) Ease of Use. The admin and employees strongly agree that the system is easy to navigate and simple to use, user-friendly, and flexible to the admin. This is proven by the user’s rating of a mean average of 6.2. 3) Ease of Learning. The admin and employees strongly
  114. 114. P a g e | 114 agree that the system is easy to learn. This is proven by the user’s rating of a mean average of 6.3. 4) Satisfaction. The admin and employees strongly agree that the system is satisfying. This is proven by the user’s rating of a mean average of 6.2. Combining all the four categories, the system got an average of 6.23. This proves that the expected users strongly agree that the proposed Payroll System can help the company and its employees to be more efficient and more productive. Chapter 4 Conclusion and Recommendation This chapter discusses the conclusion drawn from the findings discussed. Followed by a list of recommendation this is based on this study. Conclusion The following are the conclusion drawn from the findings discussed in chapter 3:
  115. 115. P a g e | 115 1. The features of the proposed system are Data Storage, System Security, Logging in and Out, Employee Timesheet, Leave Approval, Cash Advance, Main Menu, Loan, Employee Maintenance, Deductions Maintenance, Benefits, User Accounts, Payroll Summary, and Remittances. 2. The cost requirements are Php 938,749.00 for the SAP ECC 6.0, Php 149, 085.00 for the MS SQL Server 2014, Php 56,970.00 for the 3 Desktop, Php 4,180.00 for the D- link 24 port switch, Php 6,790.00 for the SS D-link Router, and Php 90,000.00 for the cables and connectors which totals Php 1,245,765.00. The software requirements are Windows 7 for the operating system, Microsoft SQL Server 2014 for the Database Platforms, and SAP ECC 6.0 for the application software. The hardware requirements are 300 GB free space of Hard Disk, 280 GB for the installation and 50 GB for software dump, 4GB RAM to reduce installation time, Intel i5 and above/AMD Quadcore and above, LED (High Resolution) monitor (1024x768 or higher, 256 colors) and high responsive mouse and laser printer. 3. The user acceptance level of the proposed payroll system is 6.2 for the usefulness, 6.2 for the ease of use, 6.3 for the ease of learning, 6.2 for the satisfaction, and 6.23 for the general average. This proves that the expected users strongly agree that the proposed Payroll System can
  116. 116. P a g e | 116 help the company and its employees to be more efficient and more productive. Recommendations The following are the recommendation that maybe considered to enhance the proposed system: 1.The system can be upgraded with other functions and features that are possible to be added such as changing of passwords and uploading of documents such as resumes. 2. System maintenance is required specially when there are errors and malfunctions for the system. For maintenance and for security purposes, it is recommended that the Manager may hire a knowledgeable administrator. 3. The user-friendly interface is recommended for users so that the users can easily learn from the system, thus improving the user’s productivity and efficiency. APPENDIX A COMMUNICATION LETTER
  117. 117. P a g e | 117 APPENDIX B INTERVIEW TRANSCRIPT
  118. 118. P a g e | 118 Interview Setting: Interview conducted in the office of Julie Binwag the Supervisor of Calajo Resto in Session Road. The interview was conducted at 4:00 PM on Wednesday afternoon on July 20, 2016. Interviewer: How many employees are there in each branch of Calajo or the average number of employees? Interviewee: In session road, there are at least 20 employees, in Km4 there are at least 25 since there is a bakery and in Km6 there are also at least 20. Interviewer: Who are the employees that are in Calajo Resto or the positions? Interviewee: The positions in Calajo Resto are the managers or the owners, supervisors, kitchen crews, dishwashers, dining crews and front liners. Interviewer: Who are the people involved in the payroll system of the company? Interviewee: Only the supervisor which is me. Interviewer: How many computer units are there in each branch of Calajo or in Session? Interviewee: In Session branch, there is one laptop, in Calajo Km6 there is none because they are using manual while in Km4 there is also only one computer unit. Interviewer: What are the procedures of the payroll system in Calajo or how is it done step by step?
  119. 119. P a g e | 119 Interviewee: As of now we are manual, and we use manual daily time record. In the daily time record, they have their names written and as they come in to work they will log in in the logbook. The time in which will be transferred to the official DTR after work, they will now sign in and their DTR for the day. If the pay period is already coming, we will compute on 14 and 29 because our pay day is 15 and 30. If the payday is Sunday it will be moved on Monday 16 or 31. Then if it is already cut off, I will have to collect all the DTR and I will manually compute the hours or dates in which they work and I will encode in the excel format, which serves as the summary payroll sheet. I also have a separate excel format to be printed in the envelope size which will be the copy of each employee with their take home pay in it. Interviewer: Is there over time? Interviewee: Yes, there is overtime and they are being paid. For example, 285 pesos a day is 8 hours. And 285 divided by 8 hours and the supervisor adds 25 percent per hour of overtime. The 25 percent is the regular overtime. If it is regular holiday, 285 multiplied by 2 or 200 percent is given to each employee, but if they absent during the holiday we only give 100 percent provided that they work the day before the holiday. If it is special
  120. 120. P a g e | 120 holiday, 30 percent is added on their daily wage. These are mandated by DOLE. Interviewer: What software or materials do you use to calculate the employee’s payroll? Interviewee: Calculator and then the computer excel system. Interviewer: What are the documents that are produced after the processes of the payroll system? Interviewee: The excel summary payroll and the individual pay slip and then the individual envelope. Interviewer: What are the benefits that the employees get? Interviewee: As per DOLE order, it is the regular over time, special holiday overtime, and legal holiday overtime. Aside from that, we also deduct and remit their SSS, Pab- ibig and PhilHealth contributions. the SSS. Of course, if you are applied in a company you are required to deduct 30 percent from the employer and 70 percent from the employee and these are the SSS, PAG-IBIG and the PhilHealth. Interviewer: Do they have allowances? Interviewee: Not all employees have allowances. There are only few employees and for example theses skilled workers like the drivers and chef, they have extra allowance that is given by the company which is not mandated by the DOLE. Interviewer: What do you call these allowances? Interviewee: We call it extra allowances of the company, it
  121. 121. P a g e | 121 is not mandated by the DOLE, but is an agreement of the employee and the employer. There are also extra benefits that are given by the company for example the employee is sick and we give financial assistance which is from the company or the help from the other employees like donations for the hospital bills. Interviewer: What are the deductions that are done during the processing of the payroll? Interviewee: The tax of course because it is obligatory for the government. But it also depends if you are single and dependent you have higher tax, if you are married but no children you are the same with single, but if you are married with three children, of course it depends now in the monthly salary. Interviewer: Is your pay period semi-monthly? Interviewee: Yes, it is semi-monthly. Two times a month like 15 – 30 but in Calajo we give the payroll on 11th and 25th of each month. Interviewer: When are, the deductions computed? Interviewee: In our deductions for example the SSS, PhilHealth and PAG-IBIG contributions it is on the 25th of every month. In our first half, the loans. For example, the employees loaned some money from SSS and PAG-IBIG, we will deduct it in the first half or on the 11th so they will not
  122. 122. P a g e | 122 have any problems in their personal contributions. Interviewer: What are the problems that are always encountered in the existing payroll system? Interviewee: Sometimes, the overtime of the employees is being forgotten. If they did not fill up the DTR correctly, it will not be computed. If they complain, the management check it and will be addressed right away. Interviewer: What are the types of employees in the Calajo? Interviewee: There are regular employees, newly employed and casual employees. For the casual employees, they are given 6 months for their evaluation. After six months and they are being evaluated and they passed, they will now become regular. Interviewer: Do you give deductions to those newly employed employees? Interviewer: Yes, because it is also mandated by the SSS. Upon employment during the first day and second day until one week they will be evaluated. But for example, they worked for one day and they resigned right away there will be no deductions but we will just give their daily salary. But in terms of benefits we will not give them anymore. But it is also case to case basis not everyone has the same situation. Interviewer: What is the time schedule of the employees in
  123. 123. P a g e | 123 their work? Interviewee: In Calajo Session, only one shift. We only have one shift so our business operation starts at eight in the morning and end at eight in the evening. As for the kitchen crew that has to come earlier because they have to cook. For the dining, they need to start at 7:30 then if they started at 7:30 then they can go home earlier. Interviewer: If ever an employee will be late, how will you handle it in the payroll? Interviewee: We also conduct deductions in the payroll. For example, they are late for five minutes then we will also deduct five minutes from their over time. Interviewer: What are the procedures of SSS, PhilHealth and Pag-Ibig Loaning? Interviewee: For the SSS, the employee will go to the office of SSS and fill up a loan form, then let the employer sign it which is the Calajo. After the employer sign it, the employee will now file it in SSS office. The office will now process it for 15-20 days and receive their check and it is addressed to the employer. Even though the check is named for the employee, the check is addressed to the employer. Once the check voucher is now received by the employer, that will be the time where the employer deducts it from the employee’s salary. The process for SSS is the
  124. 124. P a g e | 124 same with Pag-IBIG. PhilHealth is not loanable because it is only health insurance. You only use PhilHealth benefits when you are sick or you are confined in the hospital. Interviewer: What are the conditions of each loans? Interviewee: For SSS and Pag-Ibig, you have to be employed, your employer will deduct payments and the employer will be the one to remit it in the bank or the community. Interviewer: How do you deduct the loan? Interviewee: For Calajo, we deduct it in the first half of their pay period, because for Calajo they have 11 and 26 pay days so they will deduct it every 11 day first half. Interviewer: What are your procedures for employee leave? Interviewee: They will have to file a notice for example if it is a planned absences or planned leave or attend a graduation for their children. They have to file it at least 2 or 3 days before that day. They have to make an absent slip and then they will pass it in the office. The employer will approve it and then they will be permitted to have their leave that day. Interviewer: What are your available types of leave? Interviewee: Sick leave and vacation leave. Interviewer: Do you have cash advances? Procedures and conditions? Interviewee: Yes, we have, we have a schedule for cash
  125. 125. P a g e | 125 advances. For Calajo they have it every 2nd of the month. They have to fill up the slip and they will give it on that day and then we will give it on a cash basis. They will sign the pay slip if they receive the cash advance and deduct it on their salary on the pay day. Interviewer: How much is your daily regular hours of work? Interviewee: 8 hours. Interviewer: What is the limit of your overtime period? Interviewee: As long as the work requires, we don’t have limit. But some got it like 4 hours and it depends upon the area of their work. Interviewer: What will happen of the employee did not time in? Interviewee: Usually we give them chance and we ask them and then if it is a valid reason we consider. But if they did not sign the log book or did not log out we usually ask them the next day. Interviewer: Is the rate of every salary is changing for each position? Interviewee: For the employees, they follow the dole requirements which is 285. Interviewer: What are your taxable and non-taxable allowances? Interviewee: The benefits Pab-ibig, PhilHealth and SSS are
  126. 126. P a g e | 126 the non-taxable. The rest are taxable for example the overtime. Interviewer: What are the types of positions you give to your employees? How do they differ from each other? Interviewee: Usually in Calajo the positions that we have are the dining crew, kitchen crew, preparation crew and washing crew but they don’t have difference in the basic salary. They only have the differences in the incentive that the employer gives them. Interviewer: Do you have lunch break or any break? Interviewee: Lunch break is minimum of 1 hour maximum of 2 hours. For the snack time break we have 10 minutes. Interviewer: What is the specific time of the break.? Interviewee: For the am snack, we have 9:30 to 11:00 and for the pm snack starts at 3:00 to 4:30. And for the lunch time some starts their lunch 11:30 to 5:00. Interviewer: How many minutes or hours late before you consider your employee absent? Interviewee: Usually, they are considered late only but they are physically present. But for example, the regular time is 8:00 so they need to be here by 7:45. If they are not in by 7:45 they are already considered late. Interviewer: What is your procedure for your overtime pay? Interviewee: 285 / 8 hrs. * 25% = 44. 53 per hr.
  127. 127. P a g e | 127 Interviewer: Is it automatically that the employee will acquire overtime if it exceeded 8 hrs.? Interviewee: Yes, they have that daily time. They overtime is by hour but it can also be by minute for example they have overtime of 13 minutes we will compute it. Interviewer: When is the starting month of your fiscal year? Interviewee: It starts on January. Interviewer: When is the starting of the 13th month pay? Interviewee: It is paid on or before December 25 but not after December 25, it should be paid on December 1-24. It is in the DOLE rules. Interviewer: What is your rule in cash advance? Interviewee: We have two dates in giving cash advances, every second and every 17th day of the month. You can only have one cash advance in one month. If you have three late in one pay period, then you can not avail cash advances and it is a company rule. Interviewer: Until How much can an employee avail? Interviewee: At least 3,000 PHP. Interviewer: Where do you indicate Cash Advance in employee pay slip? Deduction or Earnings? Or both? Interviewee: On the left side of the pay slip. It is deduction only.
  128. 128. P a g e | 128 Interviewer: How many sick and vacation leaves do you have? Do all employees get the same amount of available leaves? Interviewee: An employee can have 5 leaves each type in a year. If the employee did not use it, it will be converted to cash at the end of the year. Interviewer: What are the reports besides pay slip and DTR that are issued to employees? Interviewee: SSS and Pag-IBIG Loan application form. Interviewer: What are the reports that are not issued to employees? Interviewee: There are no reports that aren’t issued to employees because we need to be clear about the payroll that we release to each employee in order to clarify all of their questions if possible about their salary. Interviewer: Do you want to have an online payroll system for all three branches of Calajo or an individual payroll system for each branch? If yes, are you prepared for networking cost like monthly internet connection? Interviewee: If possible, only one branch will have an online payroll system for all the three branches. There is already internet connection in Calajo session and in km4 La Trinidad.
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  130. 130. P a g e | 130 APPENDIX C SURVEY QUESTIONNAIRE
  131. 131. P a g e | 131 The researchers gathered information for their study using the questionnaire presented. Please rate your agreement with these statements. ∙ Try to respond to all the items. ∙ For items that are not applicable, use: NA USEFULNESS 1 2 3 4 5 6 7 NA 1.It helps me be more effective. Strongly disagree Strongly agree 2. It helps me be more productive. Strongly disagree Strongly agree 3. It is useful. Strongly disagree Strongly agree 4. It gives me more control over the activities in my life. Strongly disagree Strongly agree 5. It makes the things I want to accomplish easier to get done. Strongly disagree Strongly agree 6. It saves me time when I use it. Strongly disagree Strongly agree 7. It meets my needs. Strongly disagree Strongly agree 8. It does everything I would expect it to do. Strongly disagree Strongly agree EASE OF USE 1 2 3 4 5 6 7 NA 9. It is easy to use. Strongly disagree Strongly agree 10. It is simple to use. Strongly disagree Strongly agree 11. It is user friendly. Strongly disagree Strongly agree 12. It requires the fewest steps possible to accomplish what I want to do with it Strongly disagree Strongly agree 13. It is flexible Strongly disagree Strongly agree 14. Using it is effortless Strongly disagree Strongly agree
  132. 132. P a g e | 132 15. I can use it without written instructions Strongly disagree Strongly agree 16. I don’t notice any inconsistencies as I use it Strongly disagree Strongly agree 17. Both occasional and regular users would like it Strongly disagree Strongly agree 18. I can recover from mistakes quickly and easily Strongly disagree Strongly agree 19. I can use it successfully every time Strongly disagree Strongly agree EASE OF LEARNING 1 2 3 4 5 6 7 NA 20. I learned to use it quickly Strongly disagree Strongly agree 21. I easily remember how to use it Strongly disagree Strongly agree 22. It is easy to learn to use it Strongly disagree Strongly agree 23. I quickly became skillful with it Strongly disagree Strongly agree SATISFACTION 1 2 3 4 5 6 7 NA 24. I am satisfied with it Strongly disagree Strongly agree 25. I would recommend it to a friend Strongly disagree Strongly agree 26. It is fun to use Strongly disagree Strongly agree 27. It works the way I want it to work Strongly disagree Strongly agree 28. It is wonderful Strongly disagree Strongly agree 29. I feel I need to have it Strongly disagree Strongly agree 30. It is pleasant to use Strongly disagree Strongly agree APPENDIX D ANSWERED SURVEY QUESTIONNAIRE
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