Chapter 3

I. Introduction

For almost 6 yrs. Luz Banzon Multi-purpose Cooperative is using excel

system for their payroll. Exerting more effort and time, facilitator calculates and records the employee’s salary. Sometimes one mistake can be mistake of everything, starting again from the beginning. This is the reason why this research is aiming to upgrade their current payroll system.

Computerized payroll system automates many functions, which saves both time and resources. It automatically figures, such us employee’s earnings, based on inputs. The computerized system keeps it organized so you can access and update data it electronically as needed. Computerized payroll system also decrease error rates as most the processing is performed by the computer instead of humans. All payroll information remains in one location. Giving you extreme control over your payroll system auto calculates all deduction related to labor laws and income tax and ensure you to meet all your statutory compliance.

A payroll system is an important application that should be used by businesses of any size. These systems are a guaranteed way to make sure your payroll is done on time and in agreement with all taxing authorities. Tax laws and rates have continually changed in recent years, new tax credits, expiration of old credits and rate changes can all affect

This can be easily incorporated into any business applications being used by the company. The use of this type of system in your company will help ensure that you remain up-to-date with the current tax laws and your obligations to the different taxing department.

In computerized payroll system, the computer stores data such as an

employees, name, address, social security number, marital status, number

of with holding allowance, pay rate and voluntary deduction. At the end of

each period, the operator enters all payroll transaction data, such as

regular and overtime hours for each employee, deduction and etc. into the...