DATA BASE MANAGEMENT SYSTEM

TERM PAPER

SUBMITTED TO SUBMITTED BY

PROF.SARTAJ SINGH Manpreet singh

Roll no E3004A84

ClassM.C.A(1STSEM)

ACNOWLEDGEMENTI would like to express my gratitude to all those who gave me

helping hand incompleting this term paper. I want to thank my

teacher MR.SARTAJ SINGH for helping me whenever I needed it

the most. My friends have also supported me in my work. I want to

thank them all for their help, support, interest and valuable hints.

INDEX SRNO CONTENTS PAGENO

1. Introduction 4

2. Payroll administration 5

3. Manual system 6

4. Payroll system 7

5. Objective of payroll 7

6. Advantage of payroll process 8

7. Example of an organization 8

8. Flow chart 14

9. ER Diagram 17

PAYROLL PROCESSING

INTRODUCTION

Payroll is defined as a method of administrating employees salaries in the

organizations. The term 'payroll' encompasses every employee of a company who

receives a regular wage or other compensation. Some employees may be paid a

steady salary while others are paid for hours worked or the number of items

produced. All of these different payment methods are calculated by a payroll

specialist and the appropriate paychecks are issued.  The process consists of

calculation of salaries and tax deductions of the employees, administrating the

retirement benefits and disbursements of salaries to employees. It can also be called

as an accounts activity, which undertakes the salary administration of employees in

the organization. It identifies risks such as entering incorrect.employee information

into the system and making unauthorized adjustments to employee hours.

Administrating the employees’ salaries is not an easy task, the HR and accounts

department work together to calculate and disburse the salary to the employees.

Thus, payroll management can be further subdivided into two sub processes, i.e.

Payroll accounting and payroll administration

PAYROLL ACCOUNTING:

Payroll accounting involves calculations of employees’ salaries and tax

deductions. It also undertakes the activities such as preparation of tax returns,

maintaining the payroll records, etc. Payroll accounting includes reporting of

payroll, fringe benefits, and the payroll-related accounts of a typical company

on its income statement and balance sheet. Payroll and benefits include items

such as:

Salaries

Wages

bonuses & commissions to employees

overtime pay

payroll taxes and costsPAY

Social Security

Medicare

federal income tax

state income tax

state unemployment tax

federal unemployment tax

worker compensation insurance

employer paid benefits

holidays

vacations

sick days

insurance (health, dental, vision, life, disability)

retirement plans

profit-sharing plans

Many of these items are subject to state and federal laws; some involve labor

contracts or company policies.

PAYROLL ADMINISTRATION:

Payroll administration encompasses all the tasks involved in paying an

organization’s employees. It typically involves keeping track of hours worked

and ensuring that employees receive the appropriate amount of pay. It also

includes calculating taxes and social security as well as ensuring that they

are properly withheld and processed. Depending on the company in

question, a full range of other deductions may be calculated, withheld, and

processed as part of payroll administration. Additionally, the processing of

contractor payments may fall under the umbrella of payroll administration.

Handling payroll-related problems are part of payroll administration as well.

If an employee is paid an incorrect amount or a direct deposit fails to go

through, both things are payroll administration issues. Likewise tax filing and

deduction errors are payroll administration matters as well.

Payroll administration is an important task which most companies and

business establishments find it difficult to cope with. To efficiently perform

this task, it requires tedious paper work, records maintenance, salary and

loan administration, providing up-to-date information to employees,

superannuation, tax compliance, deductions, reimbursements, and so on

calculation of gross salaries and deductible amounts is a tedious task which involves

risk. Some of the organizations use the traditional manual method of payroll

processing and some go for the advanced payroll processing software. An

organization opts for any of the following payroll processing methods available.

Manual System

Manual payroll system is the traditional payroll system which involves pen and ink,

adding machine, spreadsheet, etc instead of computers, software and other

computerized aids. The process was very popular when there were no computerized

means for payroll processing Now-a-days it is only few small scale organizations in

the remote areas that use the manual payroll. Sometimes the construction industry

and manufacturing industry also use the manual payroll systems for the contractual

labour, as theses contracts are on daily/weekly basis.

There is full control in the hands of owner. But the process is tedious, time

consuming and risky as it is more prone to errors.

      

Figure: Various Payroll Processes

Accountant

Accountant is a professional having a degree/diploma course in

finance/accountancy. He/she is responsible for all the activities related to payroll

accounting. He/she has the sound knowledge of accounting principles and globally

accepted standard

The process adds costs to the organization. It involves paying someone who is

responsible for calculating the salaries of others. The financial control regarding

salary goes in the hand of accountant. 

Payroll Software

In today’s computerized environment, payroll system has also developed itself into

automated software that performs every action needed by the payroll process. It

helps in calculating the payable amounts and deductions very easily. It also helps in

generating the pay slips in lesser time. Automated calculations result in no errors.

Data is validated automatically by the software.

It needs professionals to make use of the software for its efficient working.

Payroll Outsourcing

Payroll outsourcing involves a third party (an outsourcing company) in the

calculations of salaries and deductions. The outsourcing organization is responsible

for all the activities of the payroll accounting. It saves time and cost for the

organization. If there is more number of employees (say more than 900-1000) in the

organization, payroll outsourcing would be very much.

Objective of payroll processing:

To speed up the task of maintaining employee records,such as their personal

information ,their job profile and the salary thereof, by computerizing the whole

scenario so that the task can be performed in a better ,efficient an cost effective

manner.

To facilitate easy and user friendly interface for entry of records pertaining to

employees as well as for generation of payslips thereof . To facilitate maintaince of

proper record of attendance for each and every employee so that appropriate reports

could be generated as and when required for the ease of higher authorities.

To provide an automated system of payslip generation, so that useful reports

grouped according to employees or month could be generated out of the system. To

sum up the the objective of building this project is to avoid the unnecessary wastage

of time and money that is caused due to manual procedure that was being followed

for maintaining the records of employees and salary information in organization.

Advantages of pay roll processing:

Un-authorized access: In computer system we have a password

facility,so no body can access our data.

Data consistency: It computerized system data is consistent because it

cannot be changed by anyone.

Easy to access data: It can be accessed in this system as it is arranged in

proper table.

Reduce human effort: By use of packages large amount of human effort

is saved.

High speed: as the computer can perform all function so the speed is vary

high.

Accuracy: As all the work is done on computer,so data is very accurate.

Time saved: Computer is vary fast processinh device.so working on it save

time.

Query services: The same reports in the proposed system give the

information regarding the query to user.

Removing data redundancy: Here delicacy is not a wise and store

Example of an organization : In an organization there is need to maintain the all

records of employee personal record, attendance records, leaves records, overtime

records, salary maintain with all options.

Table Name: personal_info

Primary Key: - employee_id

Foreign key: - NILL

Purpose: - This table contains the personal information of the employee.

Table Name: department_info

Primary Key: - dept_id

Foreign key: - employee_id references personal_info(emp_id)

Purpose:- This table contains the department information of the

employee.

Table Name: salary_deduction

Primary Key: - emp_id

Foreign key: - emp_id references personal_info(emp_id)

Purpose:- This table contains the deductions the employee.

Table Name: salary

Primary Key: - emp_id

Foreign key: - emp_id references personal_info(emp_id)

Purpose: - This table contains the salary details.

Table Name: allowances

Primary Key: - emp_id

Foreign key: - emp_id references personal_info(emp_id)

Purpose:- This table contains the allowances of the employee.

Table Name: attendance

Primary Key: - emp_id and day

Foreign key: - emp_id references personal_info(emp_id)

Purpose:- This table contains the attendance record of the employee.

FLOW CHART

Add new employee

Employee code and pf code generated

Emp salary

Date of retirement calculated

Saved in “personal_info”

Do u want to add more or not

Return

Allowance

Name, father name, DOB etc

Age calculated

Add, contact no, basic pay ,file no, pan no, date of joining etc.

salary

Is employee

On probotion

Employee leave

Saved in salary

Employee detail from “personal_info”

Input deduction amounts

Salary calculated

Employee detail,from”personal_info” and allowance

RETURN

Leave

ER DIAGRAM

Employee name,father name,department,designation,from”personal _info” ,total leave,leaves taken uo to previous month from

Leave taken

Calculate leaves

Saved in “employee leaves”

return

Designation department allowancededuction

Prov.fund

Income taxsalaryincrementPf loan

code

Input,basic salry

Salary calc.

increment

Pf_loan

Old detail

Promoted emp

Over time

Database

For

payroll

emp

code

month

payment

c.leave

Advance granted

advance

labour

name

address conta

ct city

salary

Salary(probated employees)