Payroll System free essay sample

Gross Compensation Unlimited number of bonuses and earnings Unlimited number of pay adjustments Commissions and piece rate computations Special runs and 13th month computation Retirement / final pay Computation of tax, SSS, Philhealth, and hdmf can be turned on/off User specified recurring income Deduction Unlimited number of loan types Unlimited number of deduction types Maintains loan amortization and balances User specified recurring deductions Government User editable Philhealth contribtion User editable SSS contribution User editable withholding tax Beginning year to date entries Configurable Philhealth contribtion Configurable SSS contribution Configurable withholding tax Beginning year to date entries Diskette Submissions SSS salary loans diskette SSS monthly remittance diskette SSS net monthly contribution list (mcl) SSS net pre-validation file (pvf) phic rf-1 diskette hdmf premium remittance diskette hdmf loan payment diskette BIR alphalist diskette bank specific formats of bank notices FOR EXEL Payroll Systems Companies can use Microsoft Excel to keep pay details. In this activity you will create a company payroll table and pay advice slips for the individual employees. The data for the payroll system has been prepared for you; your task will be to complete the formulas. Loading the Payroll Template ?1? Load? Microsoft? Excel, ? or? close? the? current le. 2 Click on the OPEN icon in the QUICK ACCESS TOOLBAR or in the OFFICEBUTTON. Access the CHAPTER 16 folder of the EXCEL 2007 SUPPORT FILES and load the template: PAYROLLSelecting YES to the READ-ONLY dialogue box. 3 There are two worksheets in the template. Look over the PAYROLL sheetwhich will show the pay details for all employees. Click on the PAY ADVICE sheet. It will display the pay details for an individual employee. The employee would receive the PAY ADVICE printout when they receive their pay. ? 4? Save the template in your STORAGE folder under the file name: Ch16 EvesalonRemember to turn off the READ-ONLY RECOMMENDED option. Completing the Payroll Worksheet The first sheets the payroll sheet showing the pay details for all the employees of the company. 1 Ensure that the PAYROLL worksheet is on the screen. 2 Position the cursor At cell G12. We need to calculate the OVERTIME RATE OFPAY. It is 1. 5 times the NORMAL PAY RATE. 3. In cell G12 enter the fomula:E*12=1. 4. Auto fill the formula down for the other employees. 5 The GROSS PAY is the total weekly pay earned by the employee before deductions are taken out. We need to multiply the NORMAL HOURS by the NORMAL PAY RATE and the OVERTIME HOURS by the OVERTIME RATE then add the two results together. 6. Move the cursor to cell H12 and enter (D12*E12) + (F12*G12). 7. Auto fill the formula down for the other employees. NOTE: The brackets in the GROSS PAY formula are not really necessary, but they help to separate the two calculation sections and make the formula easier to understand. 8. The SUPERANNUATION is the amount contributed by employee’s eachweek to a retirement fund. It is usually a percentage of the employee’s Gross Pay. We will use a rate of 5% here. 9 Set the cursor at cell I12 and enter:= H12 * 5% ?then? auto? ll? the? formula? down? for? the other employees. The Tax Calculation Normally the TAX is calculated through a series of lookups which you did in anearlier chapter. This could be done at the right of the payroll and set not to printwhen the payroll is printed. To make things a little easier we will use a base taxrate of 25%. Set the cursor at cell J12 and enter:= H12 * 25%  then? auto? ll? the? formula? down? for? the other employees. Calculating the Net Pay The NET PAY is the GROSS PAY minus the deductions (superannuation and tax), Set the cursor at cell K12 and enter:= H12 I12 J12 then? auto? ll? the? formula? down? for? the other employees. Printing the Payroll The? print? area? needs? to? be? checked? so? that? the? whole? pay roll ts? on? one? page? and? the ORIENTATION needs to be set to LANDSCAPE 1 In the PAGE LAYOUT tab of theRIBBON set the ORIENTATIONicon to LANDSCAPE and the SIZEicon to your printer’s paper size (itis probably A4).  2 Highlight the whole payroll (cellsA1 to K17) and set the PRINTAREA icon in the RIBBON to SETPRINT AREA. 3 PRINT PREVIEW the table then print a copy and check over it. The Pay Advice Worksheet Each pay day the employees are given pay advice sheets with their pay. We canuse Microsoft Excel to create a pay advice sheet that can import values from thePAYROLL worksheet and print this pay advice sheet for each employee. Theemployee CODE is used to link the two sheets together. The CODE consists of the ? rst? three? letters? of? the? employee’s? surname? and? the? number? 50. If? two? or?  more? employee’s? have? the? same rst? three? letters? in? their? surname,? the rst? alphabetical? name receives the number 50, the second 51, the third 52, etc. A Naming the Payroll Cells It is advantageous to name the PAYROLL table cells so that entering the formulasin the PAY ADVICE sheet is easier. 1 The PAYROLL sheet should be on the screen. B Sorting The Payroll Before starting the PAY ADVICE sheet it is necessary to ensure that the PAYROLL table? is? sorted? into? CODE? order. The? lookup? formulas? will? not nd? the? correct? values if the PAYROLL table is not in CODE order. 1 With the cells A12 to K15 still highlighted, click on the SORT FILTER icon in the HOME tab of the RIBBON and select: SORT A TO Z. 2 Click on a cell to remove the highlight and the PAYROLL table should be in CODE order. Related Literature 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 companys expenses (www.  blastasia. com, 2007). The need for automation specifically in a Payroll System arise due to the complexity of the calculating tasks . For employees, the salary provides the impetus to work efficiently. Thus, it is very important from the point of view of the organization as well as the employee –that the pay is calculated on time without any errors. 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). The 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. Monthly and quarterly reports are used to prepare tax filings, and provide analytical information. W-2’s can be generated automatically at year-en (www. infonetx. com, 2009). â€Å"Employees who handle payroll preparation and processing can now attend to other office needs and concerns as the new payroll system will lessen their workload,† she added. Under the new payroll system, preparation and processing of payroll, which reflects the accrued amount payable every 15th and 30th day of the month, is done only once. Unlike the time-consuming old payroll system, preparation and processing of payroll is done twice a month covering the first half and second half of the month. It may be recalled that Mayor Constantino Jaraula ordered last week the adoption of the new computerized payroll system which is expected to take effect starting the month of October (www. misamisprobe. wordpress. com, 2007). Conceptual Framework It shows the conceptual framework of the study. Employees working data, such as the times in and out from the work serves as the input. Employee’s records and the following: SSS, PAG-IBIG and others types of deductions are ready stored in the payroll system. The data being stored in the system are then processed and produce the payroll or the monthly salary of its employees as its output.