2.8 payroll applications - revision.peterhouse.co.zwrevision.peterhouse.co.zw/ict/as level...
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2.8 Payroll Applications
AS Applied ICT
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What is a payroll system?
What are the two types of files
involved?
What happens in a payroll system?
What happens to the old master file?
General Overview
Payslips
Financial Reports
Exception Reports
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What are Payroll Systems?
• They involve batch processing
• The files are stored on two separate
magnetic files
• This obviously then means that there will
be two types of data files involved
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The Two types
1. Master file – containing data about the workers: i. Employee number ( This is used as the PRIMARY KEY; data is
stored in order of this)
ii. Name
iii. Contact details
iv. Rate of pay
v. Pay received
2. Transaction File – is a temporary file; containing data that can change from month to month.
I. Contains details of # of hours worked + any overtime + employee number.
II. Details of any new worker or any worker whose details have been changed.
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What happens in a payroll
system?
• End of week/month: master file is processed
using the transaction file.
• BEFORE the processing, the transaction file
needs to be put in the same order as the
master file.
• Computer then calculates the pay of each
worker use the # of hours worked and the
rate per hour
• Payslips then printed along with error reports.
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What happens to records in the
old master file?
• Records from old master file are read and
are updated using calculations, deletions,
addition or amendments.
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Old Master File
Transaction File
Update (this involves
calculation of employee’s wages using the hours worked from the transaction file)
Reports (these can
consist of : a) Financial reports b) Error reports c) Payslips
New Master File
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Payslips
• Information contained on these can be
found on the new master file and the
transaction file.
Master file with: -Employee number -Department worked in - pay rate per hour -Tax code -NI number
Transaction file: Containing employee
number and hours worked.
Payslips
Image of Payslip
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Payslip
From the old master file
This data is written to the new master record and is updated
From the transaction file
From the old master file
Calculated during update process
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Financial Reports
• Payroll software report generator facility
1. Information on employees of company/ or department
2. Information on employee salary
3. NI(National Insurance) contributions for all employees
4. Total NI contribution paid to tax authorities.
5. Income tax
6. Amount of money paid to each bank where employees have an account.
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Exception Reports
• These are reports of certain validation
rules. For example:
– Employee earning an unusually large amount
of money
– Employee that has been on emergency tax for
a long time.
– 2 employees with the same NI number.