1. INTRODUCTION The Computer nowadays is a basic need for businesses or companies. It helps a lot in such a way that it makes work more progressive and productive. It is an important thing that a company or small business should have because it helps a lot in many ways such as organizing, storing and manipulating data. Having computer programs may help a company grow bigger and be competitive in the flow of the business world. The companies nowadays uses computer literate and very competitive in the business (Brian Thomas, 2004). 2. PURPOSE AND SCOPE A payroll system is adopted by the employer to process payment of salaries of the employees... there are various kinds of payroll system, one is an automated disbursement facility that enables fund transfers from the employer's bank account to various individual accounts of the employees. Under this system, the employer need to maintain an account which should be sufficiently funded to cover payroll amount of the employees, including the payroll processing fee, upon transmission of the payroll file. The payroll system is capable of accepting electronic transmission of the payroll data for faster and more convenient crediting of employee accounts, what is needed is a file with the basic format acceptable to the system. A data-entry system will be provided for encoding of the payroll details, such as the pre-enrolled employees account numbers and the net payroll amount to be credited to each employee. The generated payroll data file from the system should then be sent to the bank. The proposed system is for local government unit which uses programming language C#. Categorizing of employee based on their status. If the employee is contractual or permanent. Adjusting of salary when the employee gets promoted or demoted. Filtering of payroll report per department. The proposed system has an active or inactive indicator of employee who terminated, end of contract, resigned or retired. Importing or exporting of attendance report. 1.2 Project Executive Summary Payroll management has traditionally been in a domain of its own, occupied solely with ensuring correct and timely payment along with compliance with relevant regulations. As a narrowly focused and transaction-oriented process, payroll management has provided the required accuracy and timeliness but has been peripheral to the larger concerns of human capital management, which has been evolving around it rapidly. Over the last decade payroll management has been so widely outsourced that most of its services have been severed from the other HCM processes. As a result, organizations cannot readily connect payroll data to important related processes in today’s HCM landscape such as pay-for-performance strategies in compensation, nor to other core human resources processes. This isolation from the evolution of HCM has prevented them from using payroll information and planning in strategizing. Now, however, technology is available that integrates the various aspects of human capital management, merging HR, payroll, talent and workforce management information and processes. As well, analysts, managers and executives can apply to it powerful analytical tools to enable better-informed decisions. In this evolved landscape, an optimized payroll management tool brings the benefits of integration with other systems, ease of use, employee self-service and business intelligence to the payroll process. With such tools, organizations can realize the same refinement and capability they expect from other instances of next-generation human capital management technology. 1.2.1 System Overview The payroll system keeps accurate employee data stored in an easily accessible database. The system has the ability to update and maintain employee information and to generate required outputs including paychecks, reports to management and reports to the government. Each week, data on the current pay period is entered into the system and verified. This data issued to update the employee master file with appropriate additions, changes and deletions and to generate required output. A payroll system provides an employer with the medium needed to process its payroll. 1.2.2 Design Constraints 1.2.3 Future Contingencies 1.3 Document Organization 1.4 Points of Contact 1.5 Project References 1.6 Glossary 2 SYSTEM ARCHITECTURE 2.1 System Hardware Architecture 2.2 System Software Architecture 2.3 Internal Communications Architecture .