Technological Institute of the Philippines

Quezon City

College of Computer Studies

"DEVELOPMENT OF A TRANSACTION-BASED SYSTEM

PAYROLL"

In partial fulfillment for the course

ITE001- Computer Programming 1

Submitted by:
Garcia, John Iverzel D. / BSIT

Indac, Kyle M. / BSIT

Ignacio, Joshua Carl T. / BSIT

Garcia, John Vincent S. / BSIT

Garcia, Giann Ed Louise / BSIT

Section: IT11S9

Submitted to
Mr. Allan Burgos
 December 2024

CHAPTER 1

INTRODUCTION
Background of the Study

Payroll processing is an important part of a business because it ensures that employees are paid
accurately and on time. Many small and medium-sized businesses still use manual methods or
spreadsheets to calculate payroll, which can be error-prone and time-consuming. This can result in
inefficiencies such as incorrect salary calculations, payment delays, and difficulty tracking overtime and tax
deductions.

The need for a computerized payroll system arises from these challenges. A computerized system
can handle various payroll tasks automatically, minimizing errors, and providing real-time updates on
employee compensation. This project proposes a payroll system tailored to meet the needs of a
hypothetical company that experiences difficulties in managing employee pay calculations, overtime
tracking, and tax deductions.

Project Objectives

The project shall also cover a payroll system that calculates wages based on payroll transactions
like job role, daily pay rate, days worked, overtime hours, and bonuses. Automation of this reduces
possibilities for miscalculation, especially about overtime overtime pay and tax deductions for SSS,
Pag-IBIG, and PhilHealth. It allows for a detailed payroll summary with the gross, deductions, and net
salary, and a projection of a monthly income. In addition, it pays for millions of employees with different
types such as managers, waiters, cashier, and cooks among others.

This payroll system relies on itself and does not require the internet or outside databases. It has a
user-friendly design, making it easier for users to input their employee information and create accurate
payroll reports. The system is developed with common problems of manual payroll processes in mind, such
as waste of time and errors, and by providing a speedy and easy solution for small and medium-sized
businesses.

Significance of the Study

A computerized payroll system offers substantial advantages for businesses, especially in payroll
management. This system minimizes the time and effort needed by payroll officers and managers to
calculate, prepare, and distribute employee salaries.

This research will help for the following:

• Developers : As first-year BSIT students, this project provides us with a valuable learning experience in
applying theoretical concepts to real-world software development. Working on this payroll system allows us
to practice programming in C++, improve our problem-solving skills, and collaborate effectively as a group.
It also gives us a foundation for future projects, helping us understand the fundamentals of system
development early in our academic journey.

• Employees : With precise and timely payments, employers can ensure that workers are always paid in
time. Such reliability builds a friendly workplace, which strengthens morale and productivity by ensuring job
satisfaction.

• Company – Hypothetically, the company using this system will benefit from more efficient and accurate
payroll processing, reducing administrative overhead and ensuring employees are paid on time with the
correct deductions.

• Future researchers and scholars: Researchers and scholars are a critical body to payroll management
knowledge development. They investigate best practices and identify challenges in the field, thereby
contributing valuable insights to academic literature. This improves understanding and informs the
development of more effective payroll systems. This system can serve as a reference or starting point for
future developers looking to create more advanced payroll systems or integrate additional features such as
online access or integration with databases. , hence bringing about the benefit to organizations and
employees.

Scope and Delimitations

The scope of the payroll system includes the following:

• Calculating employee wages based on their role, daily pay rate, days worked, overtime, and bonuses.

• Automatically applying tax deductions for SSS, Pag-IBIG, and PhilHealth.

• Displaying a summary of gross salary, deductions, and net salary, along with a monthly salary estimate.

• Processing payroll for multiple employees within a single session.

• Standalone System: Operates offline as a standalone program, without requiring external databases or
network connectivity.

• User-Friendly Interface: Designed with a simple and intuitive interface to ensure ease of use and quick
input of employee details.

• Role-Specific Pay Rates: Adjusts pay rates according to the employee's role, such as manager, cashier,
cook, and waiter, ensuring accurate wage calculations.

For the delimitations of the system:

• The system is a standalone program and cannot be accessed online.

• It does not include database functionality for storing employee records. All calculations are done during
the session and are not saved for future access.

• The system does not support online or remote payroll access, limiting its use to a single machine.

USER’S MANUAL
#include <iostream>

using namespace std;

string EmployeeName, Role;

float payPerHr, SalaryPerDay; // Default salary per day for normal employee

float sss, pag_ibig, philhealth, Total_Salary, NetSalary;

float DaysWorked, HrsOvertimed;

float bonus = 0; // bonus variable

char OTAsk, BonusAsk, ContinueAsk;

bool Overtime;

int WorkingDaysPerMonth = 22;

float SSS_Amount = 120.00; // 4.5% tax

float PAG_IBIG_Amount = 100.00; // 2% Tax Capped at 100 Because of Monthly Salary Exceeding 5000

float PHILHEALTH_Amount = 50.00; // 2.75% Tax of PhilHealth

// Function to calculate overtime

float getOvertimeAdd(float HrsOvertimed, float payPerHr)

return payPerHr * HrsOvertimed;

// Function to calculate weekly worked salary

float Week_Worked(float SalaryPerDay, int DaysWorked)

{

return SalaryPerDay * DaysWorked;

int main()

do {

cout << "\t===== EMPLOYEE'S PAYROLL SYSTEM =====\n";

cout << "Enter Employee Name: ";

cin >> EmployeeName;

// Get Employee Role

cout << "Enter Employee Role (Manager/Waiter/Cook/Cashier): ";

cin >> Role;

// Setting pay per hour based on role

if (Role == "Manager")

payPerHr = 100.50;

SalaryPerDay = payPerHr * 8; // Assuming 8-hour days

else if (Role == "Waiter")

payPerHr = 62.00;
 SalaryPerDay = payPerHr * 8;

else if (Role == "Cook")

payPerHr = 61.50;

SalaryPerDay = payPerHr * 8;

else if (Role == "Cashier")

payPerHr = 60.00;

SalaryPerDay = payPerHr * 8;

else

cout << "Invalid role! Defaulting to Cashier pay.\n";

payPerHr = 60.00;

SalaryPerDay = payPerHr * 8;

cout << "Enter Days Worked: ";

cin >> DaysWorked;

// Overtime input

cout << "Did overtime? Y/N: ";

cin >> OTAsk;

if (OTAsk == 'Y' || OTAsk == 'y')

cout << "Enter Total Hours of Overtime: ";

cin >> HrsOvertimed;

Overtime = true;

else if (OTAsk == 'N' || OTAsk == 'n')

Overtime = false;

else

cout << "\nInvalid input! No overtime assumed.\n";

Overtime = false;

// Basic Salary Calculation

float Basic_Salary = Week_Worked(SalaryPerDay, DaysWorked);

float Overtime_Pay;

if (Overtime) {

Overtime_Pay = getOvertimeAdd(HrsOvertimed, payPerHr);

}
else {

Overtime_Pay = 0;

// Bonus input

cout << "Is there a bonus for the employee? Y/N: ";

cin >> BonusAsk;

if (BonusAsk == 'Y' || BonusAsk == 'y')

cout << "Enter Bonus Amount: ";

cin >> bonus;

else

bonus = 0;

// Total salary including overtime and bonus

Total_Salary = Basic_Salary + Overtime_Pay + bonus;

// Tax deductions

sss = SSS_Amount;

pag_ibig = PAG_IBIG_Amount;
philhealth = PHILHEALTH_Amount;

float SumTax_Deducted = sss + philhealth + pag_ibig;

NetSalary = Total_Salary - SumTax_Deducted;

// Display Payroll Summary

cout << "\n===== PAYROLL SUMMARY =====\n";

cout << "Employee Name: " << EmployeeName << endl;

cout << "Role: " << Role << endl;

cout << "Days Worked: " << DaysWorked << endl;

cout << "Overtime Hours: " << HrsOvertimed << endl;

cout << "Basic Salary: " << Basic_Salary << "Php" << endl;

cout << "Overtime Pay: " << Overtime_Pay << "Php" << endl;

cout << "Bonus: " << bonus << "Php" << endl;

cout << "Total Salary (Before Deductions): " << Total_Salary << "Php" << endl;

cout << "\nDeductions:\n";

cout << "SSS (4.5%): " << sss << "Php" << endl;

cout << "Pag Ibig (2%, capped at Php100): " << pag_ibig << "Php" << endl;

cout << "PhilHealth (2.75%): " << philhealth << "Php" << endl;

cout << "Total Deductions: " << SumTax_Deducted << "Php" << endl;

cout << "\nTotal INCOME\n";

cout << "Net Salary = Total Salary - Tax: " << NetSalary << "Php" << endl;

// Ask if user wants to continue for another employee

cout << "\nDo you want to enter another employee? Y/N: ";
 cin >> ContinueAsk;

} while (ContinueAsk == 'Y' || ContinueAsk == 'y');

cout << "\nThank you for using the payroll system!\n";

}
 A. Screenshot of output with description

Description: A user-friendly system that helps manage time and salary for employees of a

company. It makes it easy for employees to clock in and out accurately and understand their

pay stubs, which include information about their gross earnings, deductions, and net pay.

REFERENCES
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CodeWithC. (2022, June 13). Payroll Management System C++ Project - Code with C. Code With C.

https://www.codewithc.com/payroll-management-system-project-in-c/

Random. (2023, May 31). Payroll Management System Using C++(With Source Code).

https://www.codewithrandom.com/2023/05/31/payroll-management-system-in-cpp/

Gruber, J. (1997). The Incidence of Payroll Taxation: Evidence from Chile.

https://www.journals.uchicago.edu/doi/10.1086/209877

Prakash, A. (2024, September 11). Guide to Payroll Management. PayWheel.

https://www.paywheel.com/insights/guide-to-payroll-management/

Scribd. (2022). Nyanmaru computerized payroll system

https://www.scribd.com/document/133249966/Nyanmaru-Computerized-Payroll-System-2

Thite, M., & Sandhu, K. (2014). Where is My Pay? Critical Success Factors of a Payroll System – A System
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https://ajis.aaisnet.org/index.php/ajis/article/view/820/582

Administrator. (2024, May 22). Top 10 benefits of Automated Payroll Processing for business.
AutomationEdge
https://automationedge.com/blogs/automated-payroll-processing-benefits/