Chapter 1 INTRODUCTION

Computer use is prevalent in many workplaces, and most companies nowadays may find

functioning without them virtually impossible. As a result, computers have become an

important part of how companies conduct business as well as how workers perform their

job tasks. Computers can increase the speed and accuracy of many work processes, which

improves overall worker efficiency. Documents can be written and edited much more

quickly with the aid of a word processing program, and procedures, such as billing and

accounting, can also occur more rapidly and with fewer errors. Computers can produce

reports with great speed and allow for the easy insertion of enhancements, such as charts,

graphs and pictures if desired. Computers also help companies in administrative tasks,

such as keeping up-to-date and accurate records. With computers in workplaces, we get

to use less paper, save time and energy for employees and save the planet. [ICWCJ2017]

Businesses nowadays, especially business process outsourcing companies are in need of

software applications that help in cutting down manpower, time and money wasted for

the benefit of the employers and their employees. Most of the time, it is the Human

Resources department that handle the payslip generation of every employee in a

company, but not all companies generate payslips in a computerized and automated way

due to different reasons. One of these reasons could be the company was just newly

established and that is the case for Melimaxx Manila. Melimaxx is a global business

process outsourcing company focused on a full menu of call centre services that

originated in Newport Beach, California. Soon they sought to leverage their international

Computerized Payroll System with Fingerprint Scanner for Melimaxx

Relationships by expanding the Melimaxx brand to the Philippines. Melimaxx is

comprised of 70 employees with employees that receive the semi-monthly rate salaries

that are supervisors, team leaders, agents, and administrative team workers.

This research project is dedicated specifically to Mr. Ramil P. Redoma, the Human

Resources and Administrative Head of Melimaxx Manila, who graduated at Rizal

Technological University, and a degree holder of Bachelor of Science in Industrial

Psychology.

The proposed system will help the client generate a payslip for each employee that is

based on a timekeeping system built in the overall payroll system which is made secure

by a fingerprint scanner, thus making clock in and clock out for every employee accurate

and precise to the time they get their fingers scanned.

The Human Resources department of the company does not have any proper automated

payroll system to work with, and computes employee wages manually via time card-to-

spreadsheet timekeeping system, which is why the client is in need of a software

application that will help them keep track of each employee’s work hours, benefit

records, automate payslip computations, and generate reports with ease.

The proponents will develop a Computerized Payroll System with Fingerprint Scanner

for Melimaxx to help the Human Resources department save time and effort when

generating payroll reports and payslips, and to provide a secure timekeeping system.

Computerized Payroll System with Fingerprint Scanner for Melimaxx 1-2

1.1 Statement of the Problem

The existing manual-to-spreadsheet timekeeping system is the only way

Melimaxx Corporation Manila does their day to day transaction. Most of the

transaction techniques that are applied have certain weaknesses resulting to poor

and slow daily performance prone to mishaps that necessitated the use of a

Computerized Payroll Management System.

1.1.1 Specific Problem

o Inefficient way of recording every employee’s work hours with the use

of an old fashioned timecard which sometimes lead to loss of data

integrity.
Time card machines are vulnerable to cheating and buddy punching,

which makes time card records unreliable. Also transferring of data from

Time card to Microsoft Excel spreadsheet consumes 2-3 days which is a

lot of time that could have been used for other more important tasks

around the workplace.

o The company does not provide a formal pay slip due to the fact that

they do not have a pay slip generator in the first place.

Melimaxx recently just expanded their brand in the Philippines this

August 1, 2018, and they are still working on making things around the

office automated. They started with 5 agents, and now is a company with

70 employees, and to provide justifiable breakdown of salary to their

Computerized Payroll System with Fingerprint Scanner for Melimaxx 1-3

 employees, they prioritize only the important details and is working to

provide a complete formal pay slip in the near future.

o Employee records are managed in spreadsheet files which are prone

to human errors and that sometimes lead problems.

Majority of the important files that the Human Resources teams organize

are in hard copy and are stored in folders and drawers. When they look up

for a specific employee’s basic information, it would take some time

especially when a file goes missing or is misplaced.

o Longer time needed or in some instances unable to generate reports

because of unorganized employee records, inefficient timekeeping

system and old fashioned folder and drawer type organization of data.
The difficulty of generating reports for the Human Resources team

depends on the kind of report that is being created. General reports are

quite easy to make, but making specific reports from employee report to

other kinds of administrative report takes time to make due to the fact that

they only have a spreadsheet file to rely on. Though computerized, it is not

fully automated

Computerized Payroll System with Fingerprint Scanner for Melimaxx 1-4

1.2 Current State of Technology

1.2.1 Local Study

 Salarium

Figure 1.0 – Salarium Payroll

Salarium, a software company automating business processes, is proud to

announce a new series of apps that enable fingerprint biometric scanning as a

form of verification in its SAL Time software. The time is automatically

forwarded to SAL Payroll and provides businesses a completely automated

method of monitoring employee attendance and processing payroll.Salarium aims

to be the go-to payroll solution for any business located in Southeast Asia by

providing a cutting edge enterprise payroll software at a price point that can be

availed by any business. By using a multi-module system, we help companies

automate payroll from punch-in to payout.[APH2014]

Computerized Payroll System with Fingerprint Scanner for Melimaxx 1-5

The purpose of the system is to help in making sure there is no differences in paying the

employees and their other benefits. It also helps to have more transparency in their

payroll. Salarium takes in all of your current payroll settings, computes pay in

compliance with Philippine labor and tax rules, and has four main outputs.

 PayrollHero Philippines

Figure 1.1 –PayrollHero

At PayrollHero, understands that different companies have different ways of

doing business. From how you communicate organizational changes, company

events and even how you pay your employees. To allow companies to align their

payslips more with their internal culture we have created two new payslip

templates. We will now provide; classic, modern and statement payslips.

[PHMT2018]
The main purpose of the system is to resolve the problem regarding attendance

data, creating schedules, attendance of each employees, generating the pay slips,

Computerized Payroll System with Fingerprint Scanner for Melimaxx 1-6

 paying employess and filing government forms without failure in payroll

processing.

 iSuweldo

Figure 1.2 – iSuweldo

iSuweldo is a the only pure cloud-base Software-as-a-Serial (SaaS) HR/Payroll

System in The Philippines today. The quick and easy to use HR Payroll system

that’s heavy on benefits but super light on your budget and IT resources. Now

you’ll never have to worry about your government reporting, timekeeping,

earnings, and allowances, employee’s loans processing or even handling multiple

payroll run types. There is more than a hundred reports and feature available for

your use absolutely free of charge. And we’ll gladly add your critical reports and

functions for a minimal handling and development fee. If these reports and

Computerized Payroll System with Fingerprint Scanner for Melimaxx 1-7

 functions are beneficial and required by customers you get them absolutely free.

[ISWD2012]

The main purpose of this system is easier and faster means to use Payroll

System/HR. The Payroll system is keeping track of hours, calculating wages,

withholding taxes and other deductions, printing and delivering checks and

paying employment taxes to the government.

 Makati fully implements biometric timekeeping system

Figure 1.3 – Makati City Hall Implementation of Biometrics

MANILA, Philippines - The Makati City government has fully implemented the

use of the Automated Biometrics Timekeeping System in monitoring the daily

Computerized Payroll System with Fingerprint Scanner for Melimaxx 1-8

 attendance of employees working in its offices at the City Hall complex in

Barangay Poblacion. Makati Mayor Jejomar Erwin Binay said the move was in

keeping with the commitment of the city government to harnessing technology to

promote transparency and efficiency in its operations and services.

“Aside from ensuring the accuracy of daily time records and thwarting attempts of

time theft, the new timekeeping system also promotes fast and efficient payroll

calculations,” Binay said. Vissia Marie Aldon, city personnel officer, said using

the system eliminated the possibility of employees making ‘proxy’ time-in or

time-out for other employees. The head of the Human Resource Development

Office (HRDO) also said 10 standalone fingerprint time recorders initially

procured were used for over 3,000 city personnel working in offices within the

City Hall complex during the dry run. Employees were required to sign in and out

on a timesheet to serve as back-up in case the system malfunctioned.

[MKTB2014]
The examined articles clarified the need of security, to guarantee the precision of

day by day time records and advances quick and productive finance counts by

utilizing biometrics, a unique mark time recorder. The designers will build up a

framework that will likewise utilize biometrics to guarantee employer and

employee's security in the exactness of their every day time records

.

Computerized Payroll System with Fingerprint Scanner for Melimaxx 1-9

  Touchlink

Figure 1.4 – touchlink software

Touchlink is an official product developed by MySolutions Inc. is a time and

attendance payroll software dedicated to eliminating HR’s payday headaches.

Touchlink™ can be customized to adapt to a company’s payroll requirement.

After using Touchlink™, Metalink Inc. saw that the time to prepare payroll was

cut down, summaries and reports are easily generated, and any concerns are

promptly addressed by MySolution’s support team.[TLS2018]

The main purpose of the system is to include qualifications, training, rank history,

and even incident reports, You can attach important documents for easy retrieval,

Time and attendance information are integrated through biometrics device,

Payslip computation include overtime, offsetting, and government-mandated

deductions (BIR, SSS, Pag-ibig, and PhilHealth).

Computerized Payroll System with Fingerprint Scanner for Melimaxx 1-10

1.2.2 Foreign Study

 SME Payroll

Figure 1.5 – SME Payroll

SME payroll is the handiest resource in any startup’s toolkit automated systems

and payroll has completely changed the traditional game field by bringing about

high levels of cost efficiency time savings and operational leadership at the click

of a button. SME payroll ties self service, managers, messaging and

communication, options, time and attendance, scheduling employee, databases

with profiles and analytic tools in one place.

Singapore Petroleum Corporation is the third largest islandwide retail network of

40 service stations in Singapore, providing quality and reliable round-the-clock

services to the motoring public. In addition, SPC is an established supplier of

Liquefied Petroleum Gas (LPG) to the domestic sector in Singapore. SMEPayroll

offered a solution that was flexible for their retail business and could be quickly

integrated with existing structure, and offered an accelerated learning curve for

Computerized Payroll System with Fingerprint Scanner for Melimaxx 1-11

 end users. SMEPayroll customized solution enabled SPC in providing a solution

to all its 40 service station making it convenient for the stations to manage the

payroll as well as HR activities as an individual entity, with global management

for the head office.[SME2015]

It is a comprehensive HR and Payroll solution that originated in Singapore. They

made sure that company of any size is able to make the best use of the solution

they provide. They included a reminders module for administrators, a central

repository of every employee information, an innovated payroll module, tax,

reports and many other additional features which also comes in multi currency, in

which the proponents take great inspiration.

 Sure Payroll

Figure 1.6 – Sure Payroll

Computerized Payroll System with Fingerprint Scanner for Melimaxx 1-12

 Once you get used to SurePayroll's interface, setup is easy to understand. The

working area of the current program category (like Payroll or Employees) appears

in the middle, and the related fill-in-the-blank entries (basics such as schedule and

settings) show up in the left-hand pane. But I'd like the process a lot better if it

offered wizards or some step-by-step guide to company setup. A customizable HR

Notes section lets you choose to include dozens of suggested fields, like

dependent information, shift/schedule, job grade/category, and skills. Employee

setup, which you access from another tab, is similar to company setup. You fill in

the blanks to define each worker's pay rate, taxes, deductions, and so on, some of

which comes from policies you created in company setup.[KYKL2008]

The developers take inspiration from the simplicity of SurePayroll’s UI. The main

goal of a computerized payroll system is to provide all details needed by the user

in just one click of a button without sacrificing time, effort and the risk of

miscalculations. The proponents aim to develop a system that is fast, with great

UI/UX design and most importantly easy to operate.

Computerized Payroll System with Fingerprint Scanner for Melimaxx 1-13

  SyncHR

Figure 1.7 – SyncHR

With SyncHR, you can manage all your human resources functions through a

single cloud-based application and a single database. This allows for “event-

driven updates,” where any changes you make to an employee’s information will

automatically render throughout the entire system. For example, if an employee

gets married, you just have to enter that one time, and SyncHR will update that

information wherever it is applicable. [BWF2014]

A Payroll System is a vital business need, it allows essential tasks to be done

quickly and accurately. SyncHR is a computerized payroll system that has a

cloud-based database that allows for convenient updating of payroll systems to

wherever it is applicable within the company. Similar to SyncHR in which the

proponents take great inspiration to its conventionality, the proponents aim to

develop a system that is easily deployable to the company’s existing cloud

platform

Computerized Payroll System with Fingerprint Scanner for Melimaxx 1-14

 .

 Ramco’s Payroll

Figure 1.8 – Ramco Payroll

Ramco HCM (Human Capital Management) on Cloud is a globally recognized

HR and employee talent management system for medium sized and enterprise-

level organizations. The solution claims to simplify the staffing strategy from

"hire to fire" across a series of key modules including Core HR, Time &

Attendance, Payroll, Talent Management, Recruitment, plus Planning &

Analytics. These modules are all accessible via manager and employee self-

service portals.[GTP2018]

In relation to Ramco’s Payroll Software, the proponents aim to develop a software

similar to Ramco’s Office Solutions. The system must contain all the modules the

the client needs in order to speed up processes in its Human

Computerized Payroll System with Fingerprint Scanner for Melimaxx 1-15

 Resources office. Automation is key or else the purpose of this project will be

defeated

 Biometric Technology for Effective Payroll System

Figure 1.9 – Biometrics in UK

Money being a valuable asset to the company, I have chosen to research more on

payroll and how can the effective security level be implemented to enhance the

security on payroll by the use of biometrics, as I believe in Physical Attributes

identification like finger prints, palm prints, and facial.

To solve the security risks, biometrics technology (implemented in the ReCon

Biometrics Keyless Identification Security System) uses physical attributes to

identify an individual. This solution is ideal because biometrics authentication

does not require the user to have any physical access objects present or remember

any passwords. [BIOUK2017]

Computerized Payroll System with Fingerprint Scanner for Melimaxx 1-16

Efficient finance processing is a crucial piece to any organization and since it is

straightforwardly connected with worker pay, framework shortcomings and

vulnerabilities could influence exactness. Understand that finance includes more than

just remunerating your representatives for the time they have worked, and inaccuracies

may lead to unnecessary payroll expenses. That is the reason numerous organizations

worldwide are moving to actualize biometric innovation to set up increasingly precise,

productive and secure payroll handling, and the defenders are motivated to build a

system that is secure and resistant to mishaps.

1.2.3 Client

Figure 1.10 Client Current State of Technology

Computerized Payroll System with Fingerprint Scanner for Melimaxx 1-17

 Figure 1.11 Employee Time Card Sample

Figure 1.12 Melimaxx – Operations Department

Computerized Payroll System with Fingerprint Scanner for Melimaxx 1-18

 This project aims to help the Administrative Support and Human Resources Team

of Melimaxx with a system that records Time In and Time Out of each employee

with precision and accuracy, that is at the same time secure and automated.

Melimaxx recently just expanded their brand in the Philippines this August 1,

2018, and they are still working on making things around the office automated.

MeliMaxx is a global business process outsourcing company focused on a full

menu of call center services that originated in Newport Beach, California. Soon

they sought to leverage their international relationships by expanding the

MeliMaxx brand to the Philippines. Melimaxx is comprised of 70 employees with

employees that receive the semi-monthly rate salaries that are supervisors, team

leaders, agents, and administrative team workers.

 Summary

The project’s aim is to be able to provide a secure and reliable automated

biometric time keeping module within a Payroll System to provide easy of

calculation of employee wages for the newly founded company branch.

 Situation / Background

The current manual-to-spreadsheet timekeeping framework is the main way

Melimaxx Corporation Manila does their everyday transactions. The majority of

the exchange methods have certain shortcomings resulting to poor and slow daily

performance prone to mishaps that required the utilization of a Computerized

Payroll Management System

Computerized Payroll System with Fingerprint Scanner for Melimaxx 1-19

  Problem / Challenges

The challenge is in how the proponents will achieve the project milestones of the

Computerized Payroll System with Fingerprint Scanner for Melimaxx without

sacrificing effectiveness and efficiency potential of the project within a certain

timeframe.

 Approach / Methods

Interviews, surveys, and research. The proponents have been made to determine

which processes the client is expecting from the project and how a payroll system

works. The proponents then conducted surveys to the employees and interviewed

the Human Resources Head, Mr. Ramil P. Redoma to get a basis on how they will

design the UI and the very core framework to suit the client’s needs.

o Slovin’s Formula

Slovins’s formula is used to calculate an appropriate sample size from a

population. Statistics is a way of looking at a population’s behavior by

taking a sample. It’s usually impossible to survey every member of a

population because of money or time. For example, let’s say you wanted

to know how many people in the USA were vegetarians. Think about how

long it would take you to call over 300 million people; Assuming they all

had phones and could speak!. The problems with surveying entire

populations are why researchers survey just a fraction of the population: a

Computerized Payroll System with Fingerprint Scanner for Melimaxx 1-20

 sample. If you have no idea about a population’s behavior, use Slovin’s

formula to find the sample size.The formula (sometimes written as

Sloven’s formula) was formulated by Slovin in 1960. [STE2012]

The developers conducted a simple survey using the Slovin’s formula as basis.

Melimaxx currently is comprised of seventy (70) employees, and using the

Slovin’s formula to determine the sample size:

Figure 1.13 Slovin’s Formula

Figure 1.14 Slovin’s Formula

Computerized Payroll System with Fingerprint Scanner for Melimaxx 1-21

 Where the margin of error is one hundred percent (100%) minus the confidence

level. In this survey’s case, the proponents decided to stick with the standard

ninety five percent (95%) confidence level, thus leaving the proponents with the

answer of sixty (60) as their valid sample size. The survey aims to find out how

many mishaps have occurred due to the lack of data integrity a manual time

keeping and payroll calculation system provides.

Through interviews, the proponents were able to gather vital information on

building the Computerized Payroll System with Fingerprint Scanner for Melimax

Computerized Payroll System with Fingerprint Scanner for Melimaxx 1-22

 Figure 1.15 SSS Contribution Table 2019

Computerized Payroll System with Fingerprint Scanner for Melimaxx 1-23

 Figure 1.16 PHIC Contribution Table 2018

Computerized Payroll System with Fingerprint Scanner for Melimaxx 1-24

Computerized Payroll System with Fingerprint Scanner for Melimaxx 1-24
 Figure 1.17 HDMF Contribution Table 2018

Figure 1.18 Tax Table 2018

Computerized Payroll System with Fingerprint Scanner for Melimaxx 1-25

  Conclusion

Majority of the employees of Melimaxx belongs to the Operations Department,

and every employee’s salary is dependent to which project they are working on,

and most employees don’t just have a permanent project to work on. So there is

no stable daily basic rate and monthly basic rate. Project and salary rates vary

from project to employee position. So the proponents decided to create a system

that allows the user to record employee clock in and clock outs using fingerprints

as a unique and secure biometric ID and a modifiable payslip calculator, general

reports generator, and other minor modules within a general payroll framework

application.

1.3 Objectives

1.3.1 General Objective

The general objective of this project is to make a Payroll System with a

fingerprint scanner that can provide an efficient and effective but low-cost

timekeeping system and innovative payroll system for Melimaxx Corporation.

1.3.2 Specific Objective

o To develop a fingerprint reading module that will automate

employees’ clock in and clock out with precision and accuracy.

The proponents will provide a payroll system with an efficient time

keeping module that relies on the security that a finger print scanner will

Computerized Payroll System with Fingerprint Scanner for Melimaxx 1-26

 provide. Thus saving accurate and precise clock in and clock out

information in a database
o To develop a proper pay slip generator that will provide all the

necessary details on the whereabouts of an employee’s deducted

salary a company must provide.

The developers will develop a payroll system with automatic pay slip

generator that has complete information that an employee would ask from

his or her employer like mandatory contributions such as SSS, HDMF,

PHIC and Withholding Tax. The module should also be easy to operate for

the convenience of the Human Resources Team of Melimaxx.

o To develop a system that is easy to operate so that the user will be able

to encode and manage all the necessary information needed in a basic

employee profiles.

The developers aim to create a module that allows the user to create, edit,

and delete employee profiles for quicker reference on each employee’s

basic information that the Human Resources department might need.

o To provide an organized and well developed Payroll system that will

generate reports easily and automatically.

The proponents will develop a module for the computerized payroll system

that allows the user to generate different kinds of report in PDF form,

from previous to present reports in payroll generation to summary report

Computerized Payroll System with Fingerprint Scanner for Melimaxx 1-27

 of mandatory contributions such as SSS, HDMF, PHIC and Withholding

Tax.

1.4 Scope and Limitations

1.4.1 Scopes

 User Credentials Module

The created system guarantees that the information and the data of the

employees are safe, secure and can't be accessed to by any unapproved

individual.

o User Access Security

The developers made a system structure that requires the user’s

qualifications for username and password so as to login and get to

the Computerized Payroll System. Each record has its very own

distinctive information that is encrypted inside the database. The

user cannot change its own login qualifications except if it has

been affirmed by the Administrator. Only the administrator can

access the feature of changing the login data of each user. If the

user forgot its password, the user must go to the administrator to

have its profile accessed and its credentials edited. There are three

User Access Level types in the system and it is the following.

Computerized Payroll System with Fingerprint Scanner for Melimaxx 1-28

  User Access Level 1

Is the Access Level Assigned to the System Administrator,

and for our client, the System Administrator is the Head of

Human Resources Department. This access level can be

assigned to any authority higher than the Human

Resources Head. Having this type of Access Level allows a

user to access everything that the system has to offer.

 User Access Level 2

This level of authority is next to the Administrator level,

and is usually granted to trustworthy and reliable

representatives of the company but with limitations. This

access level allows an authorized user in activating the

Time Keeping System module and generating reports

without the ability to alter any existing data in the system

connected to the database.

 User Access Level 3

Every Employee Account created by the System

Administrator is automatically granted with User Access

Level 3, and is alterable once the Admin decides to grant

the user a greater Access Level. User Access Level 3 is

Computerized Payroll System with Fingerprint Scanner for Melimaxx 1-29

 limited only to User Credentials Module, Main Menu

Module, User Profile Viewing Module, Calendar of Events

Module (viewing schedules only are allowed) and

Timesheet viewing only.

 Main Menu Module

The developers designed the main menu module in a way that it allows the

user to see the overall capability of the Computerized Payroll System with

Fingerprint scanner.

 User Profile Viewing Module

This module allows the currently logged in user to view his/her details

known to the Computerized Payroll System Database and the Company.

 Calendar of Events Manager Module

This module allows the Administrator to assign rest days for every

employee and to declare a certain date to be a special holiday, regular

holiday, or rest day depending on the situation.

 Employee Management Module

This module allows the user to add, update, deactivate, and reactive

employee accounts.

 Timesheet Viewing Module

Allows user to view his/her timesheets.

Computerized Payroll System with Fingerprint Scanner for Melimaxx 1-30

  Payroll Calculation Module

Allows System Administrator to calculate and generate payslip reports for

employees.

 General Reports Module

The developers created this module for the system, where the user will find

the specific reports to view, update, and generate when he needs to.

o Audit Trail Module

This module tracks every transaction done by every user who

accesses the Computerized Payroll System. A report can also be

generated for this module if the user needs to.

o Agency Code Module
This module allows the System Administrator to set the deductibles

amount of each employee such as Phil Health, SSS, Withholding

Tax Contributions and other deductions mandated by the law.

o Time Keeping Reports
This module allows the System Administrator to view the time in

and time out records for all the employees and generate specific

reports about it.

Computerized Payroll System with Fingerprint Scanner for Melimaxx 1-31

 o Payment Records Module
This module allows the System Administrator to view and generate

reports about company costs related to employee wages and

contributions
o Employee Timesheets Module
This module allows the System Administrator to view and generate

reports on the overall payroll records of every employee registered

in the system.
o Employee Related Reports Module
This module allows the System Administrator to view and generate

reports for any employee basic, personal, and company related

information.

 Time Keeping System Module

The most important part of the System, once activated by any user of

access level 1 or 2, it will start recording every time in and time out done

by every registered employee fingerprint on the Computerized Payroll

System database and will only stop once an authorized employee decides

to close the Time Keeping System

Computerized Payroll System with Fingerprint Scanner for Melimaxx 1-32

 1.4.2 Limitations

 The System does not have the ability to manage employees outside

Melimaxx Manila, Philippines branch.

The system is only limited to managing employees within the Philippine

branch of Melimaxx.

 The System does not have a maintenance module in case of dire

situations
The system does not have a maintenance module in case of emergencies

wherein the administrator loses his key to the administrator settings of the

system.

Computerized Payroll System with Fingerprint Scanner for Melimaxx 1-33

Computerized Payroll System with Fingerprint Scanner for Melimaxx