Review of Related Studies and Literature This section tells all the readers what are the related features of the system proposed to the other system of the foreign and local companies. This section also tells what are the possible theories, concept or principles to support the investigation. 1.1 Review of Related Studies 1.1.1 Local Studies 1.1.1.1 AHNEX Builders Network Based Payroll System Dayrit, 2007, AHNEX Builder Network ² Based Payroll System was designed for thenewly set-up AHNEX Builders. The company is currently using Microsoft Excel incomputing net pay which is time consuming. This proposed system will help in thework of the users in an easier process. Visual basic 6, Microsoft Access, and CrystalReport 9 were used for designing and creating thesystem. This was designed to meetthe requirements of the company for a better and moreenhanced system. Keepingtrack of record of employees, computing the salary and wages of each employee andgenerating reports were included in the proposed system. 1.1.1.2 In 1998, University of the East College of Business Administration under her leadership was listed by the Professional Regulation Commission (PRC) as the number 3 top performing school with over 100 examinees. This continuous performance is the reason that it granted a second level re-accreditation by The Philippine Association of Colleges and Universities Commission on Accreditation (PACUCOA). Together with the retention policy there are several programs implemented in order to improve the ratings. Within the past 60 years, the college of business administration produced more than 350 top placers in the CPA Board Examination. Twenty-nine of these were first placers, while 50 were 2nd and 3rd placers. The rest dominated the 4th to the 20th slots. It continues to produce graduates who are highly placed in private and government institutions. The top nursing schools for 2009 for range 1 (with 1000 and up takers) are: Far Eastern University Manila with 1982 passers out of 2656 takers or 74.62% passing rate; Centro Escolar University Manila with 720 out of 1002 or 71.86%. It only proves that the retention has been effective. Factors that influence the final grades of students in managerial accounting course in De La Salle University. 1.1.1.3 According to Olivar (2010) “Payroll System is heart of HumanResource System of an Organization”. The solution has to take care of calculation of the salary as per rules of the Company , I n c o m e - T a x calculation and various deductions to be done from salary based on thedaily time record using the “Biometric Attendance Record System”including statutory deductions like Income Tax and Provident Funddeductions. Another study, the main focus of the system should handleemployee’s records such as Employee List, Add New Employee, Edit NewEmployee, Attendance, Bonus and Pay slip for the administrator http://www.scribd.com/doc/101382791/CHAP1-5PAYROLLSYSTEM-THESIS-FINAL 1.1.1.4 Computerized Payroll System of Department of Health (DOH) The Computerized Payroll System is a window based program especially designed to facilitate and simplify the monthly preparation of general payroll and related reports such as Standard computerized payroll system for use in all DOH offices, Allows faster and more accurate computation of monthly gross income, deductions and net salary, Faster and less-resource-consuming generation of General Payroll and other payroll related reports, Security and integrity of payroll data and information. The Features of computerized payroll system of DOH are Graphical User Interface, Interactive and menu-driven program, Systematic maintenance and retrieval of employee records, Flexible as it provides options to include additional fields for other compensation and deductions unique to an office or unit, Automatic computation of monthly net income, GSIS, PAG-IBIG, Withholding Tax and other deductions, Y2K compliant, Fast and easy generation of the General Payroll and all other payroll related reports which include Monthly reports like GSIS and PAG-IBIG remittances, Denominations Report and Leave Credits Report and annual Yearend Tax Reports, Password security to ensure the integrity of data. General payroll reports such as Payroll Summary sheet, Pay slip, Leave Credits Report, Withholding Tax Statement (W-2), BIR Remittance Reports, GSIS Remittance Reports, PAG-IBIG Remittance Reports, Other User-defined Reports (PERA, ACA, PNB, etc..). www2.doh.gov.ph 1.1.1.5 Cagayan de Oro City Hall Computerized Payroll System The City Accounting Department has introduced an upgraded computerized payroll system for permanent employees in a bid to improve its services and maximize resources. "This project, which was conceived two years ago, basically aims to improve our services particularly in the processing of payrolls for permanent employees," City Accountant Wilma Polley-Rugay told payroll incharge of the different departments and offices at City Hall during a briefing and orientation on the concept of the one-month payroll system held Friday last week at the City Council session hall in Cagayan de Oro City. With the added features of the new computerized payroll system, Rugay said the preparation, processing and payment of payroll system to permanent employees would be hastened and fast-tracked. Adopting of the one-month payroll system is also beneficial, not only to the City Accounting Department, but also to the payroll-incharge as it would save time, energy and resources. “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, 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. www.sunstar.com.ph 1.1.2 Foreign Studies 1.1.2.1 Columbia State Community uses computer identificationa c c o u n t ( L o g I n N a m e a n d P a s s w o r d ) f o r a c c e s s t o t h e i n s t i t u t i o n s computer usage lo gs occurs electrically through the individual userslog in/out process. Users are also informed that they are responsible forany computer file’s, database and/or internet sites that are accessedthrough their computer identification account, not withstanding theirfailure to adhere to the log in/out process, on their voluntary publicationof their account information to others. http://www.scribd.com/doc/101382791/CHAP1-5PAYROLLSYSTEM-THESIS-FINAL 1.1.2.2 My Time Force (2006), It is a software-based time and attendancesystem that allows the user to collect and organize employee time datasimply and accurately. You can use Time Force to easily and efficientlytrack your employee time, manage your time & attendance data ande m p l o y e e p r o f i l e s , e l i m i n a t e b u d d y p u n c h i n g , m a k e e m p l o y e e scheduling a breeze and reduce the headaches and time associated withpayroll. http://www.scribd.com/doc/101382791/CHAP1-5PAYROLLSYSTEM-THESIS-FINAL 1.1.2.3 Johnson (1994) said, since modern computer accelerates work andkeeps track of information accurately and promptly, it’s only natural thatindustry needs the services of computer and the modern technologydevices for great help and improvement. http://www.scribd.com/doc/101382791/CHAP1-5PAYROLLSYSTEM-THESIS-FINAL 1.1.2.4 Watson (2011) offers more accessible, fast and efficient way toenhance Log-in Logout Using Biometrics Finger Prints Reader. By usingESVES biometric system for security and database ma nagement thee m p l o y e e c a n L o g - i n a n d L o g o u t b y P o i n t i n g T h u m b f i n g e r a n d Index finger http://www.scribd.com/doc/101382791/CHAP1-5PAYROLLSYSTEM-THESIS-FINAL 1.1.2.5 Titus Information Payroll System A Payroll System designed to produce payroll checks with appropriate withholdings, benefits, allowances, and deductions for employees in multiple companies, departments, and/or subdepartments. It has been designed to handle up to 1,000,000 employees in 100 companies, 1,000 departments in each company, and 36 sub-departments in each department. Some of the features and benefits of the Payroll System are multiple cost centers for payroll reporting, will handle special non- taxable benefits for ministers, flexible withholding capability, ability to split payroll expense between different cost centers, complete governmental reporting; FICA, FUTA, SUTA, Workman's Compensation, W-2's, and 1099's, Payroll check reversal, One check capability, Salaried, hourly, and contract employees in the same payroll run, Combined processing for weekly, bi-weekly, semi-monthly, or monthly, Taxable and non-taxable benefits and deductions, Multiple hourly rates for each employee, General ledger interface, Check list UFD file for check reconciliation, Extensive personnel information for each employee, Accrual of sick, vacation, and holiday hours, Flexible federal, state, and local taxation, Multiple company, department, and sub-department capability, Flexible benefit and deduction capability, Easy federal, state, and local tax table maintenance, Split income over multiple companies, departments, sub-departments, Payroll accrual/reversal capabilities, Time card data entry function, Special message function for printing on check stubs. Www.titusinformationsystems.com