Background of the Study Introduction The Computer systems nowadays are the basic need for schools, companies

and businesses. It helps a lot in such a way that it makes work more progressive an d productive. It is an important thing that a company or small business should h ave because it helps a lot in many ways such as organizing, storing and manipula ting data. Having computer programs may help a company grow bigger and be compet itive in the flow of the business world. The companies nowadays uses computer li terate and very competitive in the business (Brian Thomas, 2004). One of these is the Payroll System, it is the heart of any Human Resource S ystem of an Organization. The solution has to take care of calculation of salary as per rules of the Company, Income-Tax calculation and various deductions to b e done from salary including statutory deductions like Income Tax and Provident Fund deductions. Payroll system can be classified into two namely the Manual System and the Computer based System. In this study we use to develop a Computer based Payroll S ystem to improve a faster, easier and reliable way of payroll. It helps the staff of Lal-lo National High School (LNHS) Accounting Office for easy filing and con ducting their Finance share in every teachers, clerk and maintenance of their sc hool. The Payroll System of the Lal-lo National High School (LNHS) is imprecise s ometimes when it comes in computation of payroll. Also, the employees of the com pany are using bundy clock to indicate in their date time card, the time of work in and out every day and the Accountant administrator based the wages of each e mployee in that time card. It is hustle to use and long term creating the payrol l slip. Therefore the Lal-lo National High School (LNHS) Payroll system needs im provement. By this proposed system, the program will run through computer for payroll record. It contains the daily time record of every employee to generate payroll transaction. It can update employee information, individual and group reports, f ile leave, set a non-working or working holiday, access control and also calcula tion of 13th month pay and tax refund yearly report. Discuss the problem of the study For some problem encounter in manual organizing the Payroll System of this Campus it gives a redundant record and imperfection data. This study aimed to au tomate payroll System of Lal-lo National High School. Specifically the study sought to answer the following questions: How will the manual payroll operation be improved? What would be the output benefits of the automated system compared to manual sys tem? Solution to the problem Based on the study of Demand Media the organizations and professionals found it hard to keep track of all financial transactions data, employee data, files, sal aries, short leaves, bonuses, benefits, taxes, deductions and so on. You may hav e seen stacks over stacks of files in offices containing track records for each and every employee. Instead of managing heaps of files and spending endless hour s in calculating, the researcher proposes a computerized payroll system that wil l handle all the work. According to Natalie Grace an automated payroll system enables the employer to process its payroll through a computerized system. A manual payroll system r equires that the payroll be processed by hand and is therefore a considerably sl ower procedure than an automated system. The former makes payroll processing sim pler, and reduces errors, which are more likely with the manual system. Related Literature These are investigation that are unpublished materials like thesis, manuscr ipt and dissertations that are conducted before to which the present study has s imilarity. Local Studies AHNEX Builders Network Based Payroll System Dayrit, 2009, AHNEX Builder Network Based Payroll System was designed for t

he newly set-up AHNEX Builders. The company is currently using Microsoft Excel i n computing net pay which is time consuming. This proposed system will help in t he work of the users in an easier process. Visual basic 6, Microsoft Access, and Crystal Report 9 were used for designing and creating the system. This was desi gned to meet the requirements of the company for a better and more enhanced syst em. Keeping track of record of employees, computing the salary and wages of each employee and generating reports were included in the proposed system. This auto matically computes the basic pay of each employee. Contributions like PAG-IBIG, Philhealth, withholding taxes were also included in computing the payroll. The m ain objective of the proposed system was to develop a system in a more accurate efficient and secured data. The proponents would like to help the management and accountant for well-organized and efficient payroll. The proponents found out t hat computerization of the payroll process of all payroll transactions in the co mpany including the maintenance module are feasible. The related studies about AHNEX Builders payroll showed a common problem. Th ey use Microsoft Excel in computing net pay that makes the computations time con suming. The proponents are to design a system that generates report, keeps track of files and information, and computes employees monthly salary. The proposed syste m includes the deductions of withholding tax and GSIS contributions/remittances. JBC Engineering specialists Payroll System A. Reyes, 2008, JBC Engineering specialists Payroll System was created by th e proponents in order for the company to have a better way in computing their pa yroll. The proponents were able to modernize their system by computerizing their manual tasks such as record keeping and computing their payroll. A database was added to the system so that the company would not have to rely on papers to sto re valuable information about an employee. The database system interfaces with a n operating system to set-up, update and retrieve data items from a database org anized as single logical and physical unit. This also helps them track of the pr ogress of an employee. Another advantage of the new payroll system is in generat ing the payroll slips, which is printed out by the computer. The payroll slip co ntains all the information on how the computation arrives on the Net Pay amount an employee receives. The system also boasts of security maintenance so that onl y limited people are given access to the files. The proponents main objective in developing the system is to make the companys current manual system better and mo re efficient with the use of computer. The proponents created a computerized payroll system that will add a databa se into the system which is likely the same as with JBC Engineering specialists P ayroll System. The system lessens the use of paper outputs and paper filings. Th e proponents created a database the can easily be selected, inserted, updated an d deleted, so maintaining their system will be a breeze. They added a print frie ndly reports generated through the system like pay slip for example. Included in the system is the security module that gives access to the priority user of the system and that a certain user will have featured designated to him/her. Dasmarias Municipality Payroll System L. Lardizabal, 2010, The Dasmarias Municipality Payroll System (DMPS) was de signed to address the existing inefficiency and inaccuracy of its present system . There are problems encountered like loss of files and data, slow process of sa lary computation, difficulty in retrieving and maintaining of records, vulnerabi lity of the data to be lost or misused, and overall security of the payroll proc ess. The main objective of the DMPS was to provide the municipality with a more convenient and more reliable system of recording, storing, and retrieval of data needed to efficiently run the payroll of the employees correctly and accurately . The advantage of the system is to set up, update and retrieve data items from organized database. Another advantage of the new payroll system is generating th e payroll report slips and other forms included in the system, which will be pri nted out by the computer. The system also boasts of security maintenance so that authorized people will only be given access to the files. The language used in making the system was Visual Basic 6.0. The proponents made sure that the system would be user-friendly, making the municipalitys curre

nt system better and more efficient with the use of the computer. The proponents study focuses on Noveleta Municipality payroll system. In comparison with Dasmar ias Municipality Payroll system, the system created was from manual to computeriz ed system. The proponents created a reliable, secured and convenient payroll sys tem from a manual system for a government office need to have this kind of syste m so that they can give additional focus on more important activities to be tran sacted. The system created by Lardizabal shows common problems with the proposed system that are normally experienced from a manual system such as loss of files and data, slow process of salary computation and difficulty in retrieving and m aintaining records, vulnerability of the data to be lost or misused, and overall security of the payroll process. Security is a main function because the inform ation in the system should be kept in its confidentiality. International Literature Spine Payroll (ver9.4.0) Payroll Management Software http://www.spinetechnologies.com/products/payrollindex.htm, 2008, Spine Pay roll is very simple, flexible and user-friendly Payroll Management software espe cially for INDIA that takes care of all the requirements relating to accounting and management of employees payroll. Spine Payroll stores complete records of the employees, generates Pay-slips and Attendance Register, computes all allowances and deductions and generates all Statutory and MIS reports. Spine Payroll is on ly salary processing software with good no and wide-industry range of client bas ed in Mumbai, INDIA. It offers very high flexibility in defining various allowan ces, deductions, leave rules etc. for the employees and all formula for P.F, PF TRUST., F.P.F., E.S.I.C., Profession Tax, Income Tax, etc. are definable and cha ngeable at Users end. The proponents had an idea in the computerization of the payroll. After ana lyzing Spine Payroll, they considered adding complete records of the employees, generating Pay-slips, computing all allowances and deductions, and generating al l reports. Sure Payroll http://www.surepayroll.com/default.asp, 2010, SurePayroll is the best way t o eliminate payroll worries. Do you have between 1 and 100 employees? Let us pro ve our passion for payroll to you! Add your payroll to the more than 30,000 we p rocess each month. Payroll systems have changed for the better. With online payr oll systems, like SurePayroll, you can log on to our payroll system anytime, any where and youll be done with payroll in minutes. If youd prefer to focus on gr owing your small business rather than on the tedious tasks of payroll, consider outsourcing payroll to SurePayrolls online service. As the nations leading sup plier of online payroll services, we can help you save time, save money and stay in control of your payroll. Simple, Convenient, Smart. SurePayroll is the natio nal leader in online payroll processing. We focus exclusively on small business payroll solutions, and we provide a SIMPLE, CONVENIENT and SMART way to process payroll and file taxes. This system has a commonality with the proponents proposed system in storin g employees record and ways in processing payroll and deductions. The system also generates Pay slip and attendance Register. The proponents focused on simple an d convenient process of computing deduction such as taxes and more. Agile Payroll Systems http://www.agilepayroll.com/products.html, 2009, We are building the finest payroll system using state-of-the-art, proven Microsoft technologies. The Agile Payroll System will change your business, helping you to provide the highest le vel of customer service. Lets face it; there are more than a few payroll system s in the market already. But few were built to address your business needs for s cale, efficiency and reliability. We are building our products using the agile s oftware development process that puts both clients and testing, front and center in the development process. Our system design and development are client and te st driven to ensure that the resulting applications are flexible, meet our clien ts requirements and are of the highest quality. Here are some of the advantages we offer: An interface designed by users, efficiency in design that allows you

to be more effective in your business, developed in, and for Microsofts latest .Net technologies, reliable, scalable and secure Microsoft SQL database systems, the highest level of quality based on multi-level testing, a team with years of payroll operations, support and development experience and we work with you, as partners to help you succeed. Agile Payroll Systems has similarity with the proposed system in terms of i ts features. The proponents created an effective design for business that is dev eloped in Microsoft SQL database that will address efficiency and reliability. T his will be convenient for employee to view their salary particulars including f rom gross pay, net pay and deductions. With all the above mentioned implementing Payroll System in the school, the researcher intended to proposed a Payroll system foe Lal-lo National High Schoo l to further improve the current manual system within the campus. Company Profile Lal-lo National High School, a public secondary school situated at P. Dupay a St. Centro, Lal-lo, Cagayan, is proud to be a netizen! First time in its histo ry to open its window to the world when the Philippine Government agency specifi cally the Commission on Information and Communication Technology under the iScho ols Project granted the school free computers. The project does not end up in gi ving computer units but extended its aid with series of seminars and trainings f rom its sustainability up to their functional uses in computer laboratories, int ernet literacy course, managing libraries and website development. 8th August 2012, 3rd Floor, New Building College of Computing and Informati on Technology Isabela State University, Cauayan Campus, Cauayan, Isabela. A rema rkable time and place to remember because 2 teachers from the school, Mr. Renie A. Marantan-designated Laboratory Manager and Mr. Jovito C. Ruiz-acting School P aper Adviser, attended the Website Development Training. This gave birth to the budding website, an avenue to show you what Lal-lo National High School has and what Lal-lo National High School is. Importance of the Study To the management Lal-lo National High School will greatly benefit with the proponents study b ecause they dont need to hire many programmers for the proposed system. So the pr oponents ask for the support of the School. This will lead in lessening the expe nses of the company which can be used in their other expenses. They will also fi nd it easier to do task with the computerized payroll system wherein they can as sure time efficient and easier work done. To the employees The Employees will benefit in the system. They will find it easier to trans act about their records since searching in the system is faster than tracking in the record book or log book. Employees managing the computerized payroll system will not be the same again as they will experience relieve. It would be fast an d easy for them to handle transactions such as reports. Further determining or c omputing the payroll manually will be eliminated that will lead to faster transa ction. To the students The students will gain knowledge about the system existing inside the schoo l, with this; skills in system analysis will be improved and also it helps the f uture researcher to have an idea about payroll system and develop their own syst em. They can learn about the system and at the same time develop a greater syste m with the help of the study. Statement of the Problem The proponents interest to conduct an investigation has led them to understa nd the payroll system of Lal-lo National High School present problems: 1. What are the common problems encountered by the accounting staff of Lal-lo National High School in terms of using their manual system in processing payroll ? 2. What is the level of efficiency of the system when evaluated by the user eval uation result of the existing, the prototype system and the proposed system in t erms of Correctness, Reliability, Efficiency, Testability and portability?

3. What is the level of efficiency in the system when evaluated by the system te sting result? 4. Is there a significant difference between effectiveness of the system when ev aluated by the user evaluation result of the present, the proposed system and th e prototype system in terms of Correctness, Reliability, Efficiency, testability and Portability? Objectives of the Study Specific Objectives Specifically, attain to: B.1 Develop a system that will improve the Lal-lo National High School process i n the Payroll; B.2 Secure the records of employees and to have more manageable files; B.3 Calculate payroll transaction easily; and B.4 Summarize all the Deducted Contribution of Employees. Definition of Terms Technical Terms Payroll system design for salary computations. Programming Language Contains series of command to create software. System a collection or combination of program, procedure, data, and equipme nt utilized in processing information. Visual Basic a user friendly programming language which is used to build ap plications or software. Operational Terms Payroll - payroll is the sum of all financial records of salaries, wages, b onuses and deductions. Records collection of related items or information treated as a unit by a c omputer. Salary - is a form of periodic payment from an employer to an employee, whi ch may be specified in an employment contract. It is contrasted with piece wages , where each job, hour or other unit is paid separately, rather than on a period ic basis. Deduction - A deduction is an amount you can subtract from your gross incom e or adjusted gross income to lower your taxable income when you file your incom e tax return. Employee - a person who is hired to provide services to a company on a reg ular basis in exchange for compensation and who does not provide these services as part of an independent business. Permanent - This is the most common form of employment. A person is employe d on an indefinite basis, subject to a probationary period that is reasonable wi th reference to the nature of the job. Percentages - is used to express how large/small one quantity is, relative to another quantity. Pay Slip - is a document an employee receives either as a notice that the d irect deposit transaction has gone through, or as part of their paycheck. Bonus - refers to extra pay due to good performance.