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DATA BASE MANAGEMENT SYSTEM
TERM PAPER
SUBMITTED TO SUBMITTED BY
PROF.SARTAJ SINGH Manpreet singh
Roll no E3004A84
ClassM.C.A(1STSEM)
ACNOWLEDGEMENTI would like to express my gratitude to all those who gave me
helping hand incompleting this term paper. I want to thank my
teacher MR.SARTAJ SINGH for helping me whenever I needed it
the most. My friends have also supported me in my work. I want to
thank them all for their help, support, interest and valuable hints.
INDEX SRNO CONTENTS PAGENO
1. Introduction 4
2. Payroll administration 5
3. Manual system 6
4. Payroll system 7
5. Objective of payroll 7
6. Advantage of payroll process 8
7. Example of an organization 8
8. Flow chart 14
9. ER Diagram 17
PAYROLL PROCESSING
INTRODUCTION
Payroll is defined as a method of administrating employees salaries in the
organizations. The term 'payroll' encompasses every employee of a company who
receives a regular wage or other compensation. Some employees may be paid a
steady salary while others are paid for hours worked or the number of items
produced. All of these different payment methods are calculated by a payroll
specialist and the appropriate paychecks are issued. The process consists of
calculation of salaries and tax deductions of the employees, administrating the
retirement benefits and disbursements of salaries to employees. It can also be called
as an accounts activity, which undertakes the salary administration of employees in
the organization. It identifies risks such as entering incorrect.employee information
into the system and making unauthorized adjustments to employee hours.
Administrating the employees’ salaries is not an easy task, the HR and accounts
department work together to calculate and disburse the salary to the employees.
Thus, payroll management can be further subdivided into two sub processes, i.e.
Payroll accounting and payroll administration
PAYROLL ACCOUNTING:
Payroll accounting involves calculations of employees’ salaries and tax
deductions. It also undertakes the activities such as preparation of tax returns,
maintaining the payroll records, etc. Payroll accounting includes reporting of
payroll, fringe benefits, and the payroll-related accounts of a typical company
on its income statement and balance sheet. Payroll and benefits include items
such as:
Salaries
Wages
bonuses & commissions to employees
overtime pay
payroll taxes and costsPAY
Social Security
Medicare
federal income tax
state income tax
state unemployment tax
federal unemployment tax
worker compensation insurance
employer paid benefits
holidays
vacations
sick days
insurance (health, dental, vision, life, disability)
retirement plans
profit-sharing plans
Many of these items are subject to state and federal laws; some involve labor
contracts or company policies.
PAYROLL ADMINISTRATION:
Payroll administration encompasses all the tasks involved in paying an
organization’s employees. It typically involves keeping track of hours worked
and ensuring that employees receive the appropriate amount of pay. It also
includes calculating taxes and social security as well as ensuring that they
are properly withheld and processed. Depending on the company in
question, a full range of other deductions may be calculated, withheld, and
processed as part of payroll administration. Additionally, the processing of
contractor payments may fall under the umbrella of payroll administration.
Handling payroll-related problems are part of payroll administration as well.
If an employee is paid an incorrect amount or a direct deposit fails to go
through, both things are payroll administration issues. Likewise tax filing and
deduction errors are payroll administration matters as well.
Payroll administration is an important task which most companies and
business establishments find it difficult to cope with. To efficiently perform
this task, it requires tedious paper work, records maintenance, salary and
loan administration, providing up-to-date information to employees,
superannuation, tax compliance, deductions, reimbursements, and so on
calculation of gross salaries and deductible amounts is a tedious task which involves
risk. Some of the organizations use the traditional manual method of payroll
processing and some go for the advanced payroll processing software. An
organization opts for any of the following payroll processing methods available.
Manual System
Manual payroll system is the traditional payroll system which involves pen and ink,
adding machine, spreadsheet, etc instead of computers, software and other
computerized aids. The process was very popular when there were no computerized
means for payroll processing Now-a-days it is only few small scale organizations in
the remote areas that use the manual payroll. Sometimes the construction industry
and manufacturing industry also use the manual payroll systems for the contractual
labour, as theses contracts are on daily/weekly basis.
There is full control in the hands of owner. But the process is tedious, time
consuming and risky as it is more prone to errors.
Figure: Various Payroll Processes
Accountant
Accountant is a professional having a degree/diploma course in
finance/accountancy. He/she is responsible for all the activities related to payroll
accounting. He/she has the sound knowledge of accounting principles and globally
accepted standard
The process adds costs to the organization. It involves paying someone who is
responsible for calculating the salaries of others. The financial control regarding
salary goes in the hand of accountant.
Payroll Software
In today’s computerized environment, payroll system has also developed itself into
automated software that performs every action needed by the payroll process. It
helps in calculating the payable amounts and deductions very easily. It also helps in
generating the pay slips in lesser time. Automated calculations result in no errors.
Data is validated automatically by the software.
It needs professionals to make use of the software for its efficient working.
Payroll Outsourcing
Payroll outsourcing involves a third party (an outsourcing company) in the
calculations of salaries and deductions. The outsourcing organization is responsible
for all the activities of the payroll accounting. It saves time and cost for the
organization. If there is more number of employees (say more than 900-1000) in the
organization, payroll outsourcing would be very much.
Objective of payroll processing:
To speed up the task of maintaining employee records,such as their personal
information ,their job profile and the salary thereof, by computerizing the whole
scenario so that the task can be performed in a better ,efficient an cost effective
manner.
To facilitate easy and user friendly interface for entry of records pertaining to
employees as well as for generation of payslips thereof . To facilitate maintaince of
proper record of attendance for each and every employee so that appropriate reports
could be generated as and when required for the ease of higher authorities.
To provide an automated system of payslip generation, so that useful reports
grouped according to employees or month could be generated out of the system. To
sum up the the objective of building this project is to avoid the unnecessary wastage
of time and money that is caused due to manual procedure that was being followed
for maintaining the records of employees and salary information in organization.
Advantages of pay roll processing:
Un-authorized access: In computer system we have a password
facility,so no body can access our data.
Data consistency: It computerized system data is consistent because it
cannot be changed by anyone.
Easy to access data: It can be accessed in this system as it is arranged in
proper table.
Reduce human effort: By use of packages large amount of human effort
is saved.
High speed: as the computer can perform all function so the speed is vary
high.
Accuracy: As all the work is done on computer,so data is very accurate.
Time saved: Computer is vary fast processinh device.so working on it save
time.
Query services: The same reports in the proposed system give the
information regarding the query to user.
Removing data redundancy: Here delicacy is not a wise and store
Example of an organization : In an organization there is need to maintain the all
records of employee personal record, attendance records, leaves records, overtime
records, salary maintain with all options.
Table Name: personal_info
Primary Key: - employee_id
Foreign key: - NILL
Purpose: - This table contains the personal information of the employee.
Table Name: department_info
Primary Key: - dept_id
Foreign key: - employee_id references personal_info(emp_id)
Purpose:- This table contains the department information of the
employee.
Table Name: salary_deduction
Primary Key: - emp_id
Foreign key: - emp_id references personal_info(emp_id)
Purpose:- This table contains the deductions the employee.
Table Name: salary
Primary Key: - emp_id
Foreign key: - emp_id references personal_info(emp_id)
Purpose: - This table contains the salary details.
Table Name: allowances
Primary Key: - emp_id
Foreign key: - emp_id references personal_info(emp_id)
Purpose:- This table contains the allowances of the employee.
Table Name: attendance
Primary Key: - emp_id and day
Foreign key: - emp_id references personal_info(emp_id)
Purpose:- This table contains the attendance record of the employee.
FLOW CHART
Add new employee
Employee code and pf code generated
Emp salary
Date of retirement calculated
Saved in “personal_info”
Do u want to add more or not
Return
Allowance
Name, father name, DOB etc
Age calculated
Add, contact no, basic pay ,file no, pan no, date of joining etc.
salary
Is employee
On probotion
Employee leave
Saved in salary
Employee detail from “personal_info”
Input deduction amounts
Salary calculated
Employee detail,from”personal_info” and allowance
RETURN
Leave
ER DIAGRAM
Employee name,father name,department,designation,from”personal _info” ,total leave,leaves taken uo to previous month from
Leave taken
Calculate leaves
Saved in “employee leaves”
return
Designation department allowancededuction
Prov.fund
Income taxsalaryincrementPf loan
code
Input,basic salry
Salary calc.
increment
Pf_loan
Old detail
Promoted emp
Over time
Database
For
payroll
emp
code
month
payment
c.leave
Advance granted
advance
labour
name
address conta
ct city
salary
Salary(probated employees)