CHAPTER II

REVIEW OF RELATED LITERATURE AND STUDIES This Chapter discusses the local and foreign literature and studies of the proposed study.
Related Literature The proponents gathered some information that is related in the proposed study entitled, “Payroll System for United Auctioneers Incorporated” to have a guide and background in developing a system.
Local. According to Ramon Faloran (2008), in the article “The Computer Edge of the New Employment and Opportunities” that he wrote in the Philippine Daily Inquirer. He stated that:
“Computer gives you 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 Ms. Stephanie Manalaysay (2010), in the essay she wrote in www.studymode.com. She stated that:
“Payroll processes are the perfect place to begin when looking to control costs. New developments in software, such as allowing the integration of payroll system info into existing HR systems, mean you can look beyond traditional ERP options.”
Junald Astronomo Lagod (2010) stated that:
“Any small business owner can tell you that paying employees involves a lot more than writing a check every two week. There are dozens of laws governing employee compensation. If you don’t want to run afoul of various government agencies, you have to be well organized and stay up to date on federal and state guideline.” Gabriel Esteban (May, 2012) stated that:
“Payroll systems are simple to use, easily affordable and compliant with all new tax laws. These systems can be programmed to calculate taxes and deductions to your specific area. Most systems have an internet database that can be accessed for updates to tax codes and changes in the law.” Foreign. Payroll System is a flexible compensation administration solution. It is designed to help human resource professionals as well as finance and accounting personnel to manage employee compensation, deductions, allowances, and benefits in an organization. The system is integrated with the Employee Information System, offers efficient features and functionality to manage company's expenses (www.blastasia.com, 2007).
The need for automation specifically in a Payroll System arise due to the complexity of the calculating tasks. A speedier and accurate maintenance of the payroll becomes a matter of importance, and this is achieved through automation to a large extent. Automated Payroll System is an improvisation of the manual Payroll Process. It offers great benefits to the organization by improving the channel of flow of information and also providing easy retrieval of information (www.churmura.com, 2010). Payroll is an application that lends itself well to the computer because of its repetitive procedures and calculation. A Computerized payroll system can perform the same basic function as those performed manually by payroll clerk. 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. (www.wadsworth.com, 2009).
Rooney (2011) described that:
“The manual payroll system means doing everything by hand, while a computerized one will enable its users to store unlimited data, keeping track of everything. In a manual payroll system, you'd have to keep track of all employees' time by hand.”
He also stated that:
“The computerized payroll system is payroll software you can automatically transfer all punches or swipes directly into the system, which will store them instantly. So instead of wasting valuable time with the tedious accounting tasks, let the software calculate the paychecks, while you work on developing your business and increasing production.”
Related Studies Local. According to City Accountant Wilma Polley-Rugay (March, 2012), during a briefing and orientation on the concept of the one-month payroll system held at the City Council session hall in Cagayan de Oro City. The City Accounting Department has introduced an upgraded computerized payroll system called “Cagayan De Oro City Hall Computerize Payroll System”. She stated that:
“This project, which was conceived two years ago, basically aims to improve our services particularly in the processing of payrolls for permanent employees. With the added features of the new computerized payroll system, I hope that the preparation, processing and payment of payroll system to permanent employees would be hastened and fast-tracked.” According to Dayrit (2007), in his Thesis entitled “AHNEX Builder Network Based Payroll System”. He stated that:
“It is designed for the newly set-up AHNEX Builders. The company is currently using Microsoft Excel in computing net pay which is time consuming. This proposed system will help in the work of the users in an easier process. This was designed to meet the requirements of the company for a better and more enhanced system. Keeping track of record of employees, computing the salary and wages of each employee and generating reports were included in the proposed system.” According to Annie Mae Vargas (June, 2012), in her Thesis entitled “Automated Payroll System”. She stated that:
“Payroll, at its most basic, is the process by which an employer pays an employee for work performed. If you own your own business, but don't have any employees, then you don't have to worry about payroll. But as soon as you hire your first worker, you have a responsibility to pay that employee on time and the correct amount.” According to Juliet C. Camacho, Merrianne Vi S. Cartaño and Charmaine A. Valdez (April 2011) of Colegio de San Juan de Letran – Calamba City, in their Thesis entitled “Computerized Payroll System”. They stated that:
“Processing payroll can be one of the most complex tasks facing an organization. The manual payroll system they are currently using calculates the payroll for each pay period entirely on paper. They will need to calculate taxes, over time, under time and any other applicable deductions and additions to each employee’s actual earnings.”
Foreign. Zenith Bank Plc Automated Payroll System & Services is an electronic salary solution designed by Zenith bank to effect fast and timely salary payment to staff of all our corporate clients/customers. Some Features are Client should have a corporate account with Zenith Bank. Client should send the payment schedule electronically in the specified format to the designated Zenith Bank e-mail address. (www.zenithbank.com, 2009)
INFONETICS Payroll System is used to maintain a list of employees’ names, addresses and employment information and is used to interactively calculate and print payroll checks. Employees’ hours are entered and distributed to appropriate Department/cost centers. Annualized tax tables are then used to automatically compute deductions before the check is printed on bank stock. (www.infonetx.com, 2009).
Lim Wei Jiun (2007) stated that:
“Titus Information Payroll System is 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.” Greg Bowden (2008), in his Thesis entitled “Employee payroll system”. He stated that:
“Because of improper maintenance, to avoid that they need certain records to maintain the particular employee details. We provide the Employee payroll system to manage the records. Our project is to maintain the Employee Payroll System in the easy manner.”