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This study is conducted in order to make the payroll system, improve their services and make their works easy and fast. A computerized payroll system will help the employee or employer of a company to develop the capability in their services of pay rolling and to avoid delayed pay rolling to their employees.







Payroll is an application that lends itself well to the computer because of its repetitive procedures and calculations. Computerized payroll systems perform the same basic functions as those performed manually by payroll clerks. The important differences are the computer’s speed, accuracy, reliability, and ability to easily generate reports.

In a computerized payroll system, the computer stores data such as an employee’s name, address, social security number, marital status, number of withholding allowances, pay rate, and voluntary deductions. At the end of each pay period, the operator enters all payroll transactions data, such as regular and overtime hours for each employee, deductions, etc., into the computer. The computer calculates all withholding taxes and other deductions and accumulates and updates the earnings and withholdings.

After entering payroll transaction data for the current pay period, a payroll report may be displayed to verify the earnings and withholdings for the month, quarter, and year.

Next, the current payroll and employer’s payroll salary expense, payroll taxes expense, and withholding liabilities journal entries are automatically generated and posted to the general ledger. A general journal report and general ledger report are displayed. At the end of the quarter, and at the end of the year, the taxable earnings report is displayed, from which the appropriate reports (e.g., quarterly reports and W-2 statements) may be prepared.

Computerized payroll software automates many functions, which save both time and resources. For example, it automatically calculates figures, such as employees’ earnings, based on inputs. Though some data must be collected and input manually, such as new hire information, the computerized system keeps it organized so you can access and update it electronically as needed. Some payroll software can be integrated with other record-keeping functions, such as time clocks. For example, the time and date that’s recorded when an employee swipes his electronic card can be imported into some payroll software programs. Computerized payroll systems also decrease error rates as most of the processing is performed by the computer instead of humans.

In Finance institutions, business or organizations computerized payroll systems can bring forth positive changes, saving hours producing and updating physical payroll journals and records. Computerized payroll systems come in the form of software packages that you must install on company computers. Whether you’re a small, medium or large organization, this type of system creates efficiency as all records can be stored, organized and maintained electronically.

The cost of a computerized payroll depends on your organization and the type of software you need. For many organizations, the payroll software may be integrated with other business applications that also handle management and accounting functions. Smaller businesses can invest in off-the-shelf, low-end software designed only for a few functions, such as payroll, invoicing and financial reporting. Mid-market software typically serves organizations that must comply with national accounting standards. High-end payroll software may be part of a larger enterprise resource planning software package that can be tailored to the needs of the particular company.

1.1     Background of the Study

Nowadays all establishment are becoming modernized, they use modern technologies to make their transaction fast, easy, and accurate in order to avoid waste of time and for the sake of safety and security. It also helps human to solve and understand complex problems and analysis such as the computational need of humans. Especially to business establishment or corporation processing enormous data and complex transaction. Payroll is an example of a complex transaction because it is a critical business operation dealing with numerous accounts and production of plenty and confidential files. Payroll is encompasses every employee of a company who receives a regular wage or other compensation due to each.

Applying manual procedure on a Payroll transaction involving the vast beat answer in that problem would be computer because computers can simulate enormous data and can process complex transaction in a fast and efficient way. It can generate numerous accounts and data accurately.

A Computerized Payroll System will not only provide accurate calculation and fast process of Payroll transaction but it will secure data through security implementation and accordingly arrange files provided by a well designed database that will produce a paperless environment.

1.2     Statement of the Problems

  1. Time consuming process of payroll preparation

The Capiz Electric Cooperative still uses the manual method of payroll process. A lot of jobs are assigned to the payroll maker and accounting clerk, which causes inconvenience to their services. In this method, it will need more time and manpower to complete the payroll of each employee.


Nobody could admit the inescapable fact that what makes the manual procedure take a long time to finish the task is due to the many steps and processes to undergo. There is the collection of data such as DTR, REMITTANCES, and individual manual calculation of payroll. Individual data is transferred through sheets, encoding and double checking after calculating. All these processes require labor and effort to complete the task.


The logical process of manual procedure results in too much time consumption. It often times result in misposting and understating of each employees data of plenty of files that is hard to accommodate.



This study is intended to design and develop a Computerized Payroll System for First Bank NIG. PLC

Specifically, this study aims at:

  1. Minimizing the effort of the bookkeeper in processing the Payroll Slip and Payroll Form.
  2. Ensuring an efficient and accurate computation of Payroll.
  3. Creating a well-arranged database and implementing strong security of the system for data security.




The proposed system will help the accounting section of First Bank NIG. PLC especially the Payroll maker/bookkeeper and the Finance Officer. It will help to lessen the time and effort of the payroll maker/bookkeeper preparing payments of employees/customers. The System developed can accommodate changing figures and produce a paperless environment through well designed database.

To Proponents

This study will help the proponents to enhance the ability on how to create an understandable computerized system in an easy way. This will serve to the proponents as a challenge to do a better system.

To the other Researcher

This study gives knowledge to the researcher on how to create a Computerized System in understandable way. This will serve as a fresh ground for the researcher whose study will be related in the field of Information Technology.

1.5     SCOPE

This study is designed to develop a Computerized Payroll System for First Bank NIG PLC. It covers the process of preparing the Pay slip of each employee/customer, the regular and job order employee, keeping of records safety and computing the exact wages of each employee. Including the stored report list of employee such as Monthly Salary, Basic salary, overtime, Gross payment, Net pay, and Deduction such as withholding tax, SSS, and Medicare, SSS loan, Advances, Multi-purpose loan, PAG-IBIG Contribution, CAPELCO loan, Cash Advance, Bond, Energy Sales, Motorcycle, Canteen, under time, Cigna, WELCA, union loan, Lot/housing loan, health Care and AR.

The proposed Payroll System for First Bank NIG. PLC is expected to generate Pay Slip of Employees/customer, Report list of employees, Remittances for respective agencies, Payroll register of regular and job-order employees, and Payroll form for every pay period.


The proposed Computerized Payroll System for First Bank NIG. PLC does not support network topology implementation and online program or online transaction.


  • To proponent    –        supports(an advocate)
  • Misposting        –        incorrectly
  • Laborious          –        requiring much physical effort
  • Remittances      –        A payment to a remote recipient
  • Database           –        information
  • De-limitation    –        boundary
  • Computerized  –        act of calculation
  • Statutory           –        regulated
  • Payroll              –        list of sum of money paid to employee
  • Paycheck             –        money received on payday as payment
  • Regardless          –        careless
  • Deposit                –        money paid in an account
  • Garnishment       –        judgment
  • Frequencies         –        rate of occurrence of anything
  • Voluntary                    free will
  • Typographic –        setting and arranging
  • Reconciliation         bringing differences in sums of money to parity
  • Eliminating –        expelling or throwing off
  • Software –        encoded computers application







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