Management System with DTR and Payroll

Chapter 1
THE PROBLEM AND ITS SETTINGS
Introduction
Attendance plays an important role in every organization. It helps determine whether
or not a business can be successful in the future. And through the attendance monitoring,
the employees will also help train themselves to become more punctual, thus resulting to
a day-to-day task being fulfilled on time. Attendance will also serve as a basis in deciding
which employees are most likely to stay in the company for a longer time.
Other than being a basis on determining the possible effects for the company and its
employees, attendance also serves as an aspect that can affect the relationship of its
employees. Some employee might fabricate their attendance records which would be
unfair to others because the ones who fabricated their records would earn more or just the
same as the others without rendering the same time or amount of work that shouldve
been done. This kind of situation greatly affects the work environment and can change
the mood or work attitude of anyone.
Also, the attendance of the employees will serve as a basis on computing the
employee's pay slip more accurately. Thus with a proper attendance monitoring, the
generation of every employee's salary would be made in an accurate way.

Management System with DTR and Payroll

Background of the Study

In this day and time, using the old ways of monitoring records, specifically using
time-card, might leave a company at a disadvantage, thus affecting the business
negatively. As technology continues to progress and innovate, new methods continue to
pop up everywhere from security systems down to the payroll every single thing focuses
on the advancement in improving the current system an organization has.
In the study of Consumo(2009), she developed a system to monitor the attendance of
the employee and to compute the payroll automatically. In her study she used password to
login in the system and get the attendance data but she had a problem in getting the
accurate time upon logging in and logging out of the employee.
With the proposed system, it will help utilize a precise, accurate, and error-free
attendance and payroll records of the employees. Since it would not be practical for an
organization to use old ways of monitoring an employees attendance, such as time cards
and log books, and do the pay slips manually, for it would not be reliable and can be
fabricated. With the use of the Facial Recognition functionality of the system, the
company would be able prevent record fabrication, thus providing a more reliable
monitoring for the business attendance. Through this system, it would be aimed to solve
such problems integrating the words precise, accurate and error-free within the system.

Management System with DTR and Payroll

Objectives of the Study

The General Objective of this Study is to build a Daily Time-Recording and Payroll
System for Government Institutions
Specifically, it aims to:
1.
D
esign a system with the following features:
a.
Monito
r Attendance of employees using Facial Recognition
b.
Checks
for Leaves, Absences
c.
Calcul
ates Deductions (SSS, PhilHealth, Pag-ibig, etc.), Gross Income, Total
Salary, and etc.

Management System with DTR and Payroll

d.
Genera
te Pay slip
e.
Notify
Employees of their salary via SMS
f.
Create
a forum or board for Announcements and Event Scheduling

2.
C
reate the system using:
a.
Sublim
e Text 3
b.
Adobe
Photoshop CC
c.
XAMP
P
d.
Visual
Studio 2015

Management System with DTR and Payroll

3.
T
o test and improve the systems functionality, efficiency, maintainability
and portability.

4.
D
etermine acceptability level of the system using ISO 9126.
Scope and Limitation of the Study
The study focuses on designing, creating, testing and improving of the Daily-Time
Recording and Payroll System. The users can access the system through their laptop,
desktop and cellular phones, it will be responsive on any medium. The access level of
each feature/sub-system differs:
The Attendance and Payroll System is WAN/LAN Based and can only be accessed if
the user within the vicinity of the network in the organization.
The Forum part of the System can be accessed even if the user is outside the network
of the organization, he/she just need to have an internet connection.
All employees will have their own account with an access level. This system centers
on the advancement of the organization through the use of modern technology. Also a
camera is attached as the device to capture image and identify the employee. The
proposed system as much as possible suggest to use a high-definition camera so that there

Management System with DTR and Payroll

will be no inconsistency and poor lightning background problems which can result into
an inaccurate result of comparing the face templates.

Significance of the Study

The systems purpose is for the benefit of the organization as it will help improve the
punctuality of employee, speed-up work and will help produce a precise computed
employee salary. Another aspect that the organization will benefit from is that the reports
of the employees attendance and pay slip wont be fabricated. The process in getting
each employees salaries would then be more reliable. In this manner, every result will be
produced in an easier and faster way, thus, will increase the productivity in the
organization.

Chapter 2
CONCEPTUAL FRAMEWORK

Review of Related Literature

Computers nowadays are widely used in every transaction processes automation
makes it easy for a company to do their internal and external transactions. Payroll and
Attendance monitoring system is one of the many transactions that are being worked on
computer. The proponents worked on a custom-made payroll and attendance system done
for the specific need of the company. The proponents searched on related literature that

Management System with DTR and Payroll

would aid in developing an effective payroll system one of the research processes
followed. The related literatures are as follows:

A.

Foreign Literature

According to Thomas Primer on his article Automated Computerized

Process, in Reader's Digest Magazine, May 2005, Page 45, for many businesses
automating collection of employee attendance data when employees begin their
shifts is still a manual process. Even business that has automated or computerized
processes such as scheduling, inventory, purchasing, general ledger and payroll
processing still use manual method such as time card sheets to collect time and
attendance data.
NOVAtime a group system developer, on last May 2007, the system that will
give management power to not only utilize tools we have available to us today,
but will continue to grow and evolve, giving it the capability to incorporate and
utilize the tools the new millennium promises to bring us. NOVAtime has a
system designed for growth while maintaining the maximum in flexibility. Where
the sophistication lies within the programmed mechanism of the system, allowing
for a quick and simple implementation and employee training cycle, after all the
true test of a system is not only in the production and wealth of reporting, but in
the simplicity and ease of its operation in conjunction with a simple and
accommodating implementation program

Management System with DTR and Payroll

Many facial biometrics-based systems have been deployed over recent years
but with varying success variability of lighting conditions often leads to
unreliable performance. Dr Thomas Heseltine, a biometrics consultant for Aurora
Computer Services and Dr Nick Whitehead, Airport Developments Programme
Manager at Atkins, describe the technology behind a new approach that resolves
these problems using infra-red instead of visible light images.
Post-September 11, myriad US airports installed biometric systems in a bid to
protect against and reassure travelers and employees about potential terrorist
threats. But the facial recognition systems trialed at numerous airports, including
Logan airport in Boston, Oakland International Airport in California and TF
Green Airport in Providence, were not a success. Failure to identify a high
percentage of passengers raised question marks over the validity of the
technology.
Nearly a decade later, security systems developed by Atkins are being rolled
out that promise to improve on this reputation. These systems use facial
recognition software developed by Aurora Computer Services. But rather than
performing facial recognition using visible light images, as had taken place in
previous systems, these systems use infrared images. In recent trials conducted
with thousands of people, no-one was falsely rejected, that is, incorrectly turned
away by the system, nor were there any false acceptance events where the wrong
person was allowed to proceed. This was achieved by improved system design

Management System with DTR and Payroll

and the advances made by the development of infra-red facial recognition. So
what exactly is the technology and why choose infra-red?
Biometrics are the digital analysis using cameras or scanners of biological
characteristics to match profiles to databases of people. Facial recognition as well
as fingerprint readers, retina and iris scanners are all examples of reliable
biometric technologies. However, many in the biometrics industry believe that
face recognition is the most promising technique for busy transport terminals as it
is deemed more acceptable to the general public
Rather than using fingerprint scanners or other devices that require people to
touch, click or stand in an exact position, facial recognition systems use relatively
distant cameras, and therefore, are less intrusive. After extensive trials this has
led to higher levels of public acceptance than other forms of biometric an
important factor in any deployment of such security systems.

The American Payroll Association (APA)

The American Payroll Association (APA) estimates that automation reduces
payroll processing costs by as much as 80 percent, much of that from reducing
errors in invoices and paychecks. A 2009 study commissioned for APA by the
Hackett Group found that 90 percent of organizations now have paperless payroll
distribution because of the advent of direct deposit and payment cards. In
addition, the study found that 58 percent of employees nationwide were taking

Management System with DTR and Payroll

advantage of self-service features to enter personal data into automated payroll
systems.
Reference: http://www.inc.com/guides/

B.

Local Literature

John Aquilan made a comparable thesis entitled Automation of time

attendance system in 2004, it stated that the automation of the time attendance
records, time in and time out of every employee using barcode system. It tends to
eliminate the manual recording system of time and attendance and also include
salary computation of each employee based on the time and attendance reports.
Ramon Floran in the Philippine Daily Inquirer, wrote on his article The
Computer Edge of the New Employment and Opportunities He stated that
computer gives a different feeling about what is happening in the company.
Business will be highly competitive and innovative because the computer
provides instant information. According to Andrea Cantoma, March 2004 entitled
Computer Library System for St. James Academy Stated that, in a manual
system in retrieving, maintaining security and piling records take place because of
the years gone by. Furthermore, these files were only kept in envelopes and
folders, prone to being misplaced. There are also instances when the right
information is given to a wrong person, which affect quality of the service.

Management System with DTR and Payroll

Related Studies
A. Foreign Study
A Study of Face Recognition as People Age
Haibin Ling, Stefano Soatto, Narayanan Ramanathan, and David W. Jacobs

Face recognition across ages is an important problem and has many

applications, such as passport photo verification, image retrieval, surveillance, etc.
This is a challenging task because human faces can vary a lot over time in many
aspects, including facial texture (e.g. wrinkles), shape (e.g. weight gain), facial
hair, presence of glasses, etc. In addition, the image acquisition conditions and
environment often undergo large changes, which can cause non-uniform
illumination and scale changes.
Face recognition and detection has been widely studied for several decades. A
lot of work has been done to handle the problem under different conditions,
including lighting, pose, expression, etc. The aging process and its effect on face
analysis, which we are interested in, has recently attracted research effort. Most
work has focused on modelling the aging process [20], age estimation [10, 12, 19,
27], and simulation [11, 21]. In comparison, face verification across ages is far
less studied. Ramanathan and Chellappa adapted the probabilistic eigenspace
framework [16] for face identification across age progression, which is most
closely related to our work. Instead of using a whole face, only a half face (called
a PointFive face) is used to alleviate the non-uniform illumination problem. Then,
eigenspace techniques and a Bayesian model are combined to capture the intra-

Management System with DTR and Payroll

personal and extra-personal image differences. Targeting the same task, our work
differs from their work in both the representation (we use gradient orientation
pyramids) and the classification frameworks (we use SVM).
Modelling face verification as a two-class classification problem is not new.
Moghaddam et al. used a Bayesian framework for the intra-personal and extrapersonal face classification. Phillips used SVM for face recognition problems and
observed good results on the FERET dataset compared to component based
approaches. Jonsson et al. used SVM for face authentication problems.
Our work is different in that we use the gradient orientation pyramid instead of
intensity differences or the intensity itself as a face description. Furthermore, we
are more interested in passport photos with age differences. Image gradients are
widely used for feature building and image representation. In most of these works,
the gradient magnitude information is included (e.g. to build a weighted
histogram). The direction of image gradient has been proposed for lighting
insensitive recognition and was shown to be insensitive to changes in lighting
direction under a Lambertian assumption. Recently, Hammond and Simoncelli
proposed a nonlinear image representation using only the orientation information.
Inspired by these works, we propose using the gradient orientation for robust face
representation with age variation. To the best of our knowledge, it is the first time
the gradient direction is combined with SVM for face verification problems. Our
experiments show that by discarding magnitude information, the gradient
orientation achieves significantly better recognition performance. We also propose
using hierarchical structure to further improve discriminability. Our work also

Management System with DTR and Payroll

relates to work on skin appearance. It is known that melanin and hemoglobin are
the two most important factors that determine human skin color. Tsumura et al.
used independent component analysis (ICA) to separate the effect of melanin and
hemoglobin as two independent components from skin color. They showed that
the logarithm of skin color can be decomposed as linear combinations of two
components corresponding to melanin and hemoglobin respectively. We show that
this fact is closely related to the insensitivity of gradient orientation across the
aging process.

Payroll System
Payroll System designed to produce payroll checks with appropriate
withholdings, benefits, allowances, and deductions for employees in multiple
companies, departments, and/or sub-departments. It has been designed to handle
up to 1,000,000 employees in 100 companies, 1,000 departments in each
company, and 36 Sub-departments in each department. Some of the features and
benefits of the Payroll System are multiple cost centers for payroll reporting, will
handle special non-taxable benefits for ministers, flexible withholding capability,
ability to split payroll expense between different cost centers, complete
governmental reporting; FICA, FUTA, SUTA, Workman's Compensation, W-2's,
and 1099's, Payroll check reversal, One check capability, Salaried, hourly, and
contract employees in the same payroll run, Combined processing for weekly, biweekly, semi-monthly, or monthly, Taxable and non-taxable benefits and

Management System with DTR and Payroll

deductions, Multiple hourly rates for each employee, General ledger interface,
Check list UFD file for check reconciliation, Extensive personnel information for
each employee, Accrual of sick, vacation, and holiday hours, Flexible federal,
state, and local taxation, Multiple company, department, and sub-department
capability, Flexible benefit and deduction capability, Easy federal, state, and local
tax table maintenance, Split income over multiple companies, departments, subdepartments, Payroll accrual/reversal capabilities, Time card data entry function,
Special message function for printing on check stubs.
Reference: http://www.titusinformationsystems.com

B. Local Study
Benefits of having an automated and computerized Payroll system
Cagayan de Oro City Hall Computerized Payroll System
The City Accounting Department has introduced an upgraded computerized
payroll system for permanent employees in a bid to improve its services and
maximize resources. This project, which was conceived two years ago, basically
aims to improve our services particularly in the processing of payrolls for
permanent employees, City Accountant Wilma Polley-Rugay told payroll incharge of the different departments and offices at City Hall during a briefing and
orientation on the concept of the one-month payroll system held Friday last week
at the City Council session hall in Cagayan de Oro City. With the added features

Management System with DTR and Payroll

of the new computerized payroll system, Rugay said the preparation, processing
and payment of payroll system to permanent employees would be hastened and
fast-tracked.
Adopting of the one-month payroll system is also beneficial, not only to the
City Accounting Department, but also to the payroll-in-charge as it would save
time, energy and resources. Employees who handle payroll preparation and
processing can now attend to other office needs and concerns as the new payroll
system will lessen their workload, she added. Under the new payroll system,
preparation of payroll, which reflects the accrued, amount payable every 15th and
30th day of the month, done only once. Unlike the time-consuming old payroll
system, preparation and processing of payroll is done twice a month covering the
first half and second half of the month
Computerized Payroll System of the Department of Health(DOH)
The Computerized Payroll System is a window based program especially
designed to facilitate and simplify the monthly preparation of general payroll and
related reports such as Standard computerized payroll system for use in all DOH
offices. It allows faster and more accurate computation of monthly gross income,
deductions and net salary, less-resource-consuming generation of General Payroll
and other payroll related reports and security and integrity of payroll data and
information. The features of computerized payroll system of DOH are graphical
user interface interactive and menu-driven program, systematic maintenance and
retrieval of employee records. It is flexible as it provides options to include

Management System with DTR and Payroll

additional fields for other compensation and deductions unique to an office or unit
and could do automatic computation of monthly net income, GSIS, PAG-IBIG,
Withholding Tax and other deductions, Y2K compliant, Fast and easy generation
of the General Payroll and all other payroll related reports which include Monthly
reports like GSIS and PAG-IBIG remittances, Denominations Report and Leave
Credits Report and annual Year-end Tax Reports. It has password security to
ensure the integrity of data. General payroll reports such as Payroll Summary
sheet, pay slip, Leave Credits Report, Withholding Tax Statement (W-2), BIR
Remittance Reports, GSIS Remittance Reports, PAG-IBIG Remittance Reports,
Other User-defined Reports (PERA, ACA, PNB, etc..) could be generated by this
system.
Andrew Mendrez (2007) a programmer, made a similar study for Vision
Designer Inc. It has an identification machine aimed at verifying a person entering
through the swiping of identification cards. After entering their given code
number, the identification cards are swiped in the machines card reader to trigger
the verification. If access granted the micro switch will then automatically unlock
to allow enter. This will help a lot in monitoring attendances accurately and more
precise. A group of computer engineers in Rebisco Biscuits Corporation, August
2007 proposed a thesis report entitled Computerized Daily Time Record System
for what is the same Innodata Corps is implementing right now a computerized
daily time record as an alternative for Bundy clock. The means of getting inside
the company premises is by swiping cards into a machine that reads every record

Management System with DTR and Payroll

of each employee then monitor and displays the time a particular employee logs
in and out.

Conceptual Model of the Study

The Figure below shows the conceptual model of the study. This indicates the
software and hardware requirements including the necessary skills needed to develop the

Management System with DTR and Payroll

system.

Management System with DTR and Payroll

Figure 1. Conceptual Model of the Study

Operational Definition of Terms

Management System with DTR and Payroll

Facial Recognition refers to a biometric identification system which through pattern
analyzation and comparison can be used for identifying or verifying a specific person
from a digital image.
Sublime Text 3 is a code editor that is clean, functional and fast, that supports many
markup languages and programming languages, which also have built in features and
supports plugins and snippets.
Adobe Photoshop CC is the worlds most advanced image-editing software which was
published and developed by Adobe Systems for Windows and Mac OS.
XAMPP (Cross-Platform, Apache, MySQL, PHP and Perl) is an open-source and free
web server package, which was designed to help developers to review their work using
their computers even without connection to the internet.
Visual Studio 2015 is an integrated development environment used to create applications
for Windows, Android, iOS and modern web applications, which was developed by
Microsoft.
ISO 9126 is a standard used for evaluating software quality, which is divided into four
parts, which are quality model, external metrics, internal metrics, and quality in use
metrics.
Responsive refers to an approach on web designing that is aimed at making dynamic
changes to the website based on the size of the device being used to view it.
Access Level is a predefined access category for users of the system.

Management System with DTR and Payroll

WAN Based (Wide Area Network Based) refers to services or applications that are
accessible over a computer network, which typically consists of two or more local-area
networks, that are often connected through public networks, such as a telephone system.
LAN Based (Local Area Network Based) refers to services or applications that are
accessible over a computer network in which devices share a common wireless link or
communications line to a server.