Bestlink College of the Philippines
Chapter II
2.0 Introduction
Payroll System, in the broadest sense, involves the computation of the employee’s
salary in a faster way. It is mostly integrated with the Information System to
automatically generate the necessary data needed by the Human Resource Department.
Large companies are using this kind of system, since computer is known for its powerful
and complex computation. Errors would be minimized in integrating a system like this. In
this chapter, the proponents will be presenting a brief review of related literature and
studies, both local and foreign that is related to these studies.
2.1 Related Literature
2.1.1 Foreign
2.1.1.1 Tanzania’s Government Payroll System
According to Kenan Kalagho writer of Busineess Weeks in Dar Es
Salaam, Tanzania the Payroll System saves Tanzania’s Government $927
Million. The government is currently saving some $927 million (Tsh1.5
billion) after introducing a new payroll system.
Speaking in Dar es Salaam last week, the Assistant Director in the
President’s Office, Public Service Management Peter Mushi said: “We
have been able to solve to a larger extent the issue of ghost workers where
the government was losing a lot of monies in salary,” Mushi said. He said
the new system allows managers to monitor any changes that have been
made on an individual’s information. Most countries in the region are
battling with the issue of ghost workers which has been costing
governments dearly.
Mushi said the money saved is being used for other government
development projects. The system has helped the government to eliminate
and save cash in terms of salaries to some 34, 645 public servants from
government payroll who were either already retirees’ or were already
demised but had their monthly salaries updates in the former system.
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“The government has been losing lot of monies due to few
dishonest workers who were taking advantages of others by enriching
themselves through the accounts of the retirees and dead workers,” Mushi
said.
The Information and Communication Telecommunication (ICTT)
infrastructure that has been improved in the country in the recent years has
helped to a larger extent to make sure that personal data information is
easily accessed at the central point thereby minimizing fraud that might be
associated tampering with ones account. He said the government did
recruitment of some 16,000 teachers early this year and entering all of
them on the government payroll system has reduced fast tracked access to
information from the newly employers than if government officers were to
bring the files at the head offices in Dar es Salaam.
According to Priscus Kiwango, the Director of Information
Resource Management in the Presidents’ Office, Public Service
Management a number of government offices at the districts level were
already using the new payroll system using the National Information
Communication Technology Broadband Backbone (NICTBB).
He said there has been a lot of new development in most of
government offices including access to internet resulting from the
mushrooming of mobile operators in the country and thus lessening the
time to enroll a new employee with the government payroll which
currently serves only 478,000 public servants.
This also means that the newly introduced system will mean that
most government workers who have been enrolled with the system will be
able to get their salaries on time upon being employed.
Source: http://www.wavuti.com/4/post/2013/08/new-payroll-systemsaves-tanzanias-government-927-million.html#axzz2dSpjemG4
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2.1.1.2 National Aeronautics and Space Administration (NASA)
Personnel and Payroll Systems
As cited by the proponents on the website of NASA their
personnel and payroll system maintains information on present and former
NASA employees. The data contained in their system of records includes
payroll, employee leave, insurance, labor and human resource distribution
and overtime information.
The following are routines used to maintained the system including
the categories of users and the purpose of such routines: (1) To furnish to a
third party a verification of an employee's status upon written request of
the employee; (2) to facilitate the verification of employee contributions
and insurance data with carriers and collection agents; (3) to report to the
Office of Personnel Management (a) withholdings of premiums for life
insurance, health benefits, and retirements, and (b) separated employees
subject to retirement; (4) to furnish the U.S. Treasury magnetic tape
reports and/or electronic files on net pay, net savings allotments and bond
transmittal pertaining to each employee; (5) to provide the Internal
Revenue Service with details of wages taxable under the Federal Insurance
Contributions Act and to furnish a magnetic tape listing on Federal tax
withholdings; (6) to furnish various financial institutions itemized listings
of employee's pay and savings allotments transmitted to the institutions in
accordance with employee requests; (7) to provide various Federal, State,
and local taxing authorities itemized listings of withholdings for individual
income taxes; (8) to respond to requests for State employment security
agencies and the U.S. Department of Labor for employment, wage, and
separation data on former employees for the purpose of determining
eligibility for unemployment compensation; (9) to report to various
Combined Federal Campaign offices total contributions withheld from
employee wages; (10) to furnish leave balances and activity to the Office
of Personnel Management upon request; (11) to furnish data to labor
organizations in accordance with negotiated agreements; (12) to furnish
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pay data to the Department of State for certain NASA employees located
outside the United States; (13) to furnish data to a consumer reporting
agency or bureau, private collection contractor or debt collection center in
accordance with section 3711 of Title 31 of the United States Code; (14)
to forward delinquent debts, and all relevant information related thereto, to
the U.S. Department of Treasury, for collection; (15) to the Office of
Child Support Enforcement, Administration for Children and Families,
Department of Health and Human Services, National Directory of New
Hires, part of the Federal Parent Locator Service (FPLS) and the Federal
Tax Offset System, DHHS/OCSE No. 09-90-0074, for the purpose of
locating individuals to establish paternity, establishing and modifying
orders of child support, identifying sources of income, and for other child
support enforcement actions as required by the Personal Responsibility
and Work Opportunity Reconciliation act (Pub. L. 104-193).
According to the website of NASA records in their personnel and
payroll system are maintained as hard-copy documents and on electronic
media and retrieved from the system by the individual's name and/or
Social Security Number. The website indicates also that the records are
protected in accordance with the requirements and procedures which
appear in the NASA regulations at 14 CFR 1212.605, utilizing locked file
cabinets and/or secured rooms. The retention and disposal of the records
are maintained in agency files and transferred to the National Personnel
Records Center (NPRC) within 3 years of creation in accordance with
NASA Records Retention Schedules. Records transferred to NPRC will be
destroyed when 10 years old by NPRC.
Source: http://www.nasa.gov/privacy/nasa_sorn_10NPPS.html
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2.1.1.3 Federal Personnel Payroll System
The Federal Personnel Payroll System is used by the United States
Department of Interior. According to the Department of the Interior's
Interior Business Center the Federal Personnel Payroll System (FPPS) is a
modern, mainframe-based, portable, integrated, on-line, and real-time
personnel and payroll system. The system provides personnel and payroll
support to numerous agencies. The system is customer-driven, creating
and generating the full life cycle of personnel transactions, enabling
agencies to maintain records electronically. FPPS handles all current
regulations including specialized pay, garnishments, special appointment
programs, and more.
FPPS was developed by the Interior Business Center (IBC) using
state-of-the-art
database
technology,
fourth-generation
language,
structured development methodology, and computer-aided software
engineering tools for robust performance and ease of maintenance. FPPS
is a highly sophisticated and comprehensive database management system
providing an extensive array of human resources (HR) and payroll
automation support within its core, including requirements prescribed by
client agencies, the IBC's centralized Payroll Operations Division (POD),
and the Office of Personnel Management (OPM). The FPPS application
supports Requesting Office, Time and Attendance (T&A input), Servicing
Personnel Office, Security, Time &Attendance Maintenance, and Pay
Maintenance commands for Federal employees and Emergency Workers
(Casuals).
All data is defined in a single database which eliminates
redundancy and multiple update routines. The single database concept also
provides for ease of maintenance and ensures data integrity. Security is
controlled by the customer and is sufficiently flexible to support all
business processes. The system is table-driven to facilitate real-time data
updates and maintenance. Many of these tables are on-line for customer
use. FPPS also offers all required electronic interfaces with the U.S.
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Treasury, OPM, National Finance Center (NFC), and various accounting
systems. The system offers extensive data warehousing capabilities.
FPPS fulfills the requirements and specifications established by the
Paperwork Reduction Act, the President's Council on Management
Improvement for Federal Automated systems, Government Accounting
Office (GAO), Office of Management and Budget (OMB), Office of
Personnel Management Federal Shared Service Center requirements and
the Financial Systems Integration Office. It also satisfies initiatives of the
National Partnership for Reinventing Government.
In addition, two web-based Time and Attendance Input Systems
are offered to customers: Quick time and web time attendance. They offer
automated routing, certification, extensive on line editing, and security
controls.
The Department of the Interior's Interior Business Center stated
that the FPPS generates personnel and payroll outputs that simplify
workflow, including: (1) Personnel, Position, and Payroll actions (2) Time
capture records (3) On-line management information system (4) Security
administration (5) Debt collection(6) On-line views (7) Retirement (8)
Payroll accounting (9) External reporting (i.e., Treasury, OPM, OMB,
NFC, & tax authorities)
Source: http://www.doi.gov/ibc/services/hr/fpps.cfm#
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2.1.1.4 Solomon Island Ministry of Finance and Treasury Payroll
The Ministry of Finance and Treasury of Solomon Island is the
branch that is responsible for payroll services to all Solomon Island
Government (SIG) employees it is also responsible for revenue collection
of all SIG revenue and ensuring the provision of imprest advances to
government employees for the smooth administration of government
expenditure.
Ministry services include statistics and economic management to
support Government decision making processes and the implementation of
good governance practice. The core tasks of the Ministry include financial
reporting, revenue collection, border protection, government payments,
preparing and managing the annual recurrent budget and advising the
Government on a range of financial policies including economic reforms.
The mission of the Ministry is to provide leadership to the
Solomon Islands community in financial matters and the delivery of high
quality, professional financial and economic services to the Minister for
Finance and Treasury, the Government, and other Ministries and the wider
community.
As the proponents cited on the website of Solomon Island
Government the Payroll Section is responsible for processing the payroll
for all employees of the Solomon Islands Government. The current payroll
system processes wages and salary payment for the government’s
employees over several different payrolls.
It is also stated that any changes to payroll are advised by the
Ministries with the use of a Salary Authority form. The Salary Authority
form is filled out by administrative officers at the various Ministries to
make any changes to fortnightly payrolls including new commencements
to the payroll. Documents supporting changes to the payroll are attached
to the Salary Authority form.
Source: http://www.mof.gov.sb/AboutUs/TreasuryUnit/Payroll.aspx
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2.1.1.5 The New South Wales Department of Trade Payroll System
According to the article “NSW government gloats at successful
payroll implementation” by Josh Taylor (August 19, 2013 -- 21:25 GMT
(05:25 SGT)) that the New South Wales Department of Trade and
Investment, Regional Infrastructure and Services has entered stage two of
its AU$14.5 million rollout for human resources, finance and payroll
system, gloating that the payroll functions were delivered on-time and onbudget, unlike the Queensland Health payroll debacle.
The department announced in July 2012 that it would be
consolidating the legacy ERP systems from 16 agencies and 8,500
employees to a cloud platform using Business ByDesign. In Budget
Estimates yesterday, Deputy Premier Andrew Stoner described the project
as "the largest cloud-based program undertaken anywhere in the world"
and had been viewed as a good example by other agencies in the
government.
Stage one of the project saw the main department go live with the
new finance system in December 2012, with the payroll system brought on
in March this year. The department's director general Mark Paterson told
the estimates hearing that the implementation had been "very successful"
so far, and had performed much better than the Queensland Health payroll
debacle.
"It will provide a pay-back inside 12-months from the investment
that was made in undertaking this activity. I point out by contrast if you
wanted to compare it, when Queensland Health sought to replace their
payroll system at a cost of $4 million it took four years and $1.2 billion,"
he said.
"We paid everybody on time and correctly in the first live payroll
run that we went on when we rolled out the new system. By any
benchmark it has been successfully implemented."
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Paterson said that moving to a cloud service required a change in
the way the department completed tasks, but the decision had been a very
cost-effective one.
"I would stand ready to respond to any particular issues that
anybody had in relation to it. It was, without question, the most costeffective, most efficient choice that we could have made to deliver those
services and it has been done extremely cost effectively with high levels of
security and certainty," he said.
Despite the praise for the new system, there have been teething
issues in relation to invoices for services provided to the department not
including purchase orders as required under the new system.
"One of the issues that arose as part of the transition to the new
enterprise resource planning process is that the system requires purchase
orders to be part and parcel of an approval mechanism inside the Business
ByDesign solution. If a purchase order has not been issued then the
business will not be able to submit an appropriately compliant invoice,"
Paterson said.
"We have had to work through some of those issues when people
have submitted invoices without reference to the appropriate purchase
order. We have had to ensure that those submitting invoices identify the
nature of the purchase or the service or goods provided and the purchase
order that was issued."
Consulting Networks confirmed to ZDNet that it was responsible
for the department's successful migration to the new payroll system, which
it says is hosted locally within the Consulting Networks datacentre.
The New South Wales Department of Trade has gloated that its
payroll system rollout has been much more successful so far compared to
the botched Queensland Health payroll system implementation.
Source:
http://www.zdnet.com/au/nsw-government-gloats-at-successful-
sap- payroll-implementation-7000019553/
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2.1.2 Local
2.1.2.1 Cagayan de Oro City Hall Computerized Payroll System
According to sunstar.com the City Accounting Department of
Cagayan De Oro City 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 in-charge 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-in-charge
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 of payroll, this 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.
Source: http://www.sunstar.com.ph/cagayan-de-oro
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2.1.2.2 Computerized Payroll System of Department of Health (DOH)
The Computerized Payroll System of Department of Health 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. It allows
faster and more accurate computation of monthly gross income,
deductions and net salary, less-resource-consuming generation of General
Payroll and other payroll related reports and 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.
It is flexible as it provides options to include additional fields for
other compensation and deductions unique to an office or unit and could
do 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 Year-end Tax
Reports.
It has 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 Userdefined Reports (PERA, ACA, PNB, etc..) could be generated by this
system.
Source: http://www.doh.gov.ph/about.html
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2.1.2.3 Payrolls in Government Agencies go to Digital
According to Philstar.com (July 30, 2013 - 6:28pm) Manila,
Philippines - Government employees soon receive digitized versions of
their payroll in a bid to increase efficiency and transparency in
government offices, Department of Budget and Management (DBM)
Secretary Florencio Abad said.
“As a fully automated and digitized system, the NPS (National
Payroll System) will play a central role in ensuring greater efficiency,
transparency and accountability in the government’s human resource
processes. And because the system will be completely electronic, all
payroll-related activities will be implemented more quickly and with
better accuracy, whether we’re talking about the distribution of monthly
salaries due to government workers, or the regular monthly remittances
that are made out to our employees’ social security and health insurance
accounts,” Abad said.
Under the new system, state agencies will continue to have
discretion over their respective human resource and personnel
requirements. This will be expressed in a Monthly Cash Plan relating to
Personnel Services that will be submitted to the Bureau of Treasury, which
will provide a payment file to the proper bank for the timely processing of
employee salaries, DBM said. The government agencies are tasked to
create Automated Teller Machine payroll accounts for their employees to
allow for the electronic distribution of monthly salaries.
“It is, very simply, a matter of government finally keeping up with
the times, where we do away with an outdated and grossly inefficient
approach to personnel compensation in favor of an electronic payroll
system that makes every transaction quick, verifiable, and transparent,”
Abad said.
Source: http://www.philstar.com/headlines/2013/07/30/1031681/payrollsgovt-agencies-go-digital
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2.1.2.4 PLDT Human Resource (HR) and Payroll System
According to Philippine Long Distance Telephone Company
(PLDT) the Human Resource and Payroll System is an easy to use
application that help the business organize, manage and monitor
employee’s information and process employee’s payroll.
The website stated the features of the HR and Payroll System of
PLDT. These are the following: (1) User defined defaults (compensation
and benefits, employee types, deductions, holidays), (2) Employee’s
information, time keeping and attendance logs, (3) payroll processing with
government mandated deductions (4) Web access for filling leaves and
online pay slips.
Source:http://pldtsmenation.com.ph/cloud/?gclid=CNDG8duYorkCFatV4
godFUcAKQ#2
2.1.2.5 Treasury to Handle Payroll of All Government
According to Philippine Daily Inquirer published on July 25, 2011
the Bureau of the Treasury will gradually take over the payroll of all
government agencies in a bid to address existing inefficiencies such as
failure of some entities to remit pension-fund contributions of state
workers.
National Treasurer Roberto Tan said concerned economic officials
have agreed to transfer the payroll systems of all line agencies under the
Treasury over a three- to five-year period. Tan said the assumption by the
Treasury of the payroll of government agencies was part of the reform
road map being established by the economic team.
“Centralization will be a more efficient way of doing the payroll,”
Tan told reporters in a briefing after the auctions for treasury bills. When
asked if the plan had to do with problems related to remittance of pensionfund contributions, Tan said transferring the payroll under the Treasury’s
management would address these problems.
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The Government Service Insurance System (GSIS) said 25,454 of
its members were temporarily ineligible to avail themselves of loans and
cash dividends because their contributions to the state pension fund had
not been remitted by their government agency-employers. These agencies,
totaling 287, have been suspended by the GSIS. The pension fund
manager said a government agency would be suspended if it failed to
remit contributions at least 60 days from due dates.
“Suspended agencies can enter into a memorandum of agreement
with the GSIS to settle their outstanding obligations. Once this is done, the
suspension will be lifted and their employees can avail themselves of
GSIS service loans,” GSIS president and general manager Robert Vergara
said. Vergara noted, however, that agencies under a memorandum of
agreement with GSIS would be suspended again if the required
amortization is not received by the GSIS within one month.
The pension fund manager also said that heads of delinquent
government agencies could face administrative charges for the delays in
the remittance of contributions.
Source: http://business.inquirer.net/8803/treasury-to-handle-payroll-of-allgovernment-agencies
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2.2 Related Studies
2.2.1 Foreign
2.2.1.1 HP masterminds complex new payroll data infrastructure
According to Robert Elsen, director, Secretariat of the Belgian
Integrated Police “HP has provided us with an efficient and transparent
solution that has been welcomed by our staff and ensures that they are all
paid the correct amount, on time.” When several police organizations were
amalgamated into one national force, the Belgian government needed a
new, centralized payroll system for its 48,000 police employees. This
large and complex solution was successfully implemented by HP
Enterprise Services. The results include more accurate accounts, improved
management and improved staff morale. It also allows for the smooth
integration with other public sector departments.
In 2001, the Belgian government called for a complete overhaul of
the country’s policing system, replacing the former Gendarmerie, Criminal
Investigation Department and Municipal Police with a unified force. This
integrated police service employs 48,000 people and is made up of the
Federal Police and 196 local divisions that operate autonomously but share
common services.
Following the integration, payroll continued to be run via outdated
applications on inefficient hardware. These were unpopular with the
various local divisions who felt that there was not enough visibility of
payroll data. The government therefore decided that payroll for the entire
force should be centrally administered by the Secretariat of the Belgian
Integrated Police (SSGPI), an autonomous service reporting to the
Ministry of the Interior.
Source:http://h20195.www2.hp.com/v2/GetPDF.aspx%2F4AA39302ENW.pdf
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2.2.1.2 Payroll and Benefits System in Japan
According to Japan Management Consulting there are two main
payroll taxes in their country the Social Insurance and Labor Insurance.
Social Insurance provides to employees a Social Insurance card that
allows them to visit any medical facilities and pay only 30% of the total
cost. It is government mandated universal coverage for employees and
Japanese employees are usually satisfied with it and do not require
additional health care benefits.
Employee National tax liability is calculated by the company and
deducted monthly from the salary. Employee Residential tax liability
(local tax or state tax is calculated by the ward office of the residence of
the employee).
Employee can ask company to have it deducted from salary. This
is the common case. Employees are usually paid on the 25th of the month
in Japan but another can be fixed freely by the company. Employees
usually get paid their commutation costs from home to the company.
However this is not an obligation.
Source:http://www.japanconsult.com/japan-company-guidebookfaq/payroll-in-japan/
2.2.1.3 Queensland begins planning new Health Payroll System
According to Paris Cowan the Queensland Government has
accepted all four recommendations of the commission of inquiry into the
failed Queensland Health payroll replacement and is already “well on
track” to see them implemented.
One of those recommendations calls upon the state to immediately
commence planning for the replacement of the $1.2 billion IBM-built
system, itself a replacement for the LATTICE system the Department had
previously relied upon. The report of the inquiry, lead by Richard
Chesterman, found “the current QH payroll system will require an upgrade
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in about a year and replacement within 5 years”. This means that work
will take place alongside the remediation of the current system, which has
been funded out to 2016-17.
Minister for Science, IT, Innovation and the Arts (DSITIA) Ian
Walker confirmed to parliament this morning that a Queensland Health
payroll planning group would be established, chaired by the Queensland
Health Director-General, to begin this process. The group will also feature
representatives of Mater Misericordiae Health Services, whose successful
payroll replacement was singled out by the commission of inquiry as a
model that Queensland Health would do well to follow.
It cited the ICT Audit’s revelation that 40 per cent of the
Queensland Government’s significant applications are either past their due
date for replacement, or will be within the next two years, but for more
than 50 percent, no consideration had been given a replacement process.
Inside DSITIA work has already begun work to list and document the
lessons learnt during the payroll saga. It aims to release a report to
agencies by 15 September to inform their IT planning.
The government also hopes that a new project approval
framework, introduced by the whole-of-government ICT Strategy in July,
will plug some of the accountability gaps that allowed the Health project
to go off the rails. New requirements include ministerial sign-off for highrisk projects and gateway reviews designed to identify and halt troubled
implementations early.
These
accountability
measures
pre-empted
the
third
recommendation of the report, but don’t fully address Chesterman’s less
formal suggestion that specialist project managers be appointed to every
large IT procurement or implementation.
Source: http://www.itnews.com.au/Author/635342,paris-cowan.aspx
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2.2.1.4 Clark Payroll System will save Time and Money
According to the article “Clark Payroll System will save Time and
Money” written by Michael Cooper of springfield news that the auditor of
the Clark country said that the new accounting and payroll systems of the
county will be more efficient, replacing some work done by hand and save
taxpayers money. The systems could cost $1 million to $1.5 million, but
bids recame back lower than expected. Officials want to have the systems
ready sometime next year, Federer said. “It’s going to save lot money,”
Federer said.
Federer said the county government currently includes paper-based
systems. Some departments are still handwriting payroll sheets and
purchase transactions, and in some instances data is being entered four
different times. They’re currently inputting payroll for 1,200 employees
every two weeks using paper time sheets. “It’s not efficient and it’s not
effective,” Federer said.
The current method is not compatible with any type of modern
software, such as Microsoft Windows. The system is also on a nonstandard server that doesn’t even have parts available if they need to be
replaced, said county administrator Nathan Kennedy. “If the server goes
down, so does our software,” Kennedy said. “If that happens, we’re
handwriting checks … It obviously needs to be replaced.”
The new system will provide processes for accounting, payroll and
accounts payable. The system will work with the county government as
well as other agencies such as the Dept. of Jobs and Family Services, the
Transportation Coordination Committee, Mental Health and Recovery
Board and even the West Central Corrections Facility in Marysville.
Federer said departments and agencies often come to the office physically
pay bills. The new system will make the process much easier.“You won’t
have people driving down here,” Federer said.
Developmental Disabilities of Clark County comptroller Ravi
Shankar said the system needs to be revamped. Shankar said payroll is
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done in-house at their office, but the same information is being entered at
the auditor’s office.
“It’s a lot of duplication,” Shankar said.
Federer is partnering with agencies that will use the software such
as Developmental Disabilities of Clark County, the county sheriff,
treasurer and Community Development department, among others, to
decide how the software can best be implemented.
“I want to make sure that what we buy satisfies them, too,” Federer
said. “We’ve developed partnerships that have never existed before like
they have today.” The agencies also use different systems that have to
mesh with other systems. “We have to be real sensitive that our system
will talk to their system,” Federer said. Shankar said there will be a
learning curve and training will be required for all the agencies involved,
but it’s “the right time to move on” from the old system.
County officials are expecting the project to cost upwards of $1
million. The initial bids will be analyzed to make sure they’re complete,
according to county administrator Nathan Kennedy. “If they are complete,
these are real good bids,” Kennedy said. “We were anticipating something
far, far higher.”
Federer believes the bids did not include important details, such as
hardware. He expects the system to cost more than the bids discussed at
the commission meeting. Kennedy said 12 vendors asked for a copy of the
request for proposals, but only two returned bid packages.County
Commissioner Rick Lohnes said the auditor’s office performs tasks for all
local agencies, including township governments and others — making the
system important for the entire county. “Everybody has to go through the
auditor,” Lohnes said. “It’s going to take training, but it’s going to be a
good system.”
Source:http://www.springfieldnewssun.com/news/news/local/clarkpayroll-system-will-save-time-money/nZfdT/
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2.2.1.5 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 sub-departments. 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.
Source: http://www.titusinformationsystems.com
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2.2.2 Local
2.2.2.1 Pulilan LGU Pioneers Mobile Money Payroll and Utility
Payment in the Country
Manila, August 15, 2013 -- Through partnership between the
Pulilan Local Government and the U.S. Government, the residents of
Pulilan, Bulacan will have the convenience of receiving salaries and
paying bills by using their mobile phones.
Pulilan has been selected as a pilot area for U.S. Embassy Manila’s
United States Agency for International Development’s (USAID), Scaling
Innovations in Mobile Money (SIMM) Project, which will enable 280
government employees to receive their salaries and more than 500
households to pay their utility bills using mobile phones.
USAID Deputy Mission Director Reed Aeschliman stated, “The
U.S. Government is pleased to support Pulilan in becoming the first Local
Government Unit (LGU) in the Philippines to shift to mobile money
payments for payroll. This will encourage greater transparency,
accountability, and efficiency in governance and enhance public service
delivery to citizens.” “This is a testament of our shared commitment to
achieve broad-based and inclusive growth in the Philippines,” Mission
Director Gloria D. Steele said in a message.
Pulilan Mayor Vicente Esguerra Sr. said, “This is a milestone for
Pulilan as we lead the way in making government payroll disbursement
more efficient and safer, and expanding financial services that are
convenient to our local residents.”
In partnership with the country’s first mobile-based savings bank,
Bank of the Philippine Islands (BPI) Globe BanKO, USAID helped
streamline government and business processes by automating its payroll
and payment systems. “BPI Globe BanKO is honored to be part of the
pioneering efforts of the Municipality of Pulilan and USAID in
introducing the mobile money payroll system to its LGU employee.
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Through SIMM, USAID is assisting Philippine Government
agencies to enable mobile money for payroll disbursement, distribution of
social welfare stipends, and payment of government services including
utilities, real property taxes, business permits, and other local government
fees. The project is aligned with the Philippine Government’s thrust of
promoting financial inclusion by expanding citizen access to formal
financial services.
Source:http://manila.usembassy.gov/pulilan-lgu-mobile-moneypayroll.html
2.2.2.2 The Cantier Solution
Many companies today see the need for a Human Resource
Application. Although there are a few choices on the market, many of
these are costly and most are incomplete, lacking payroll and local
benefits of the host country.
Some companies have decided to automate and purchased an HR
application from one supplier, a payroll application from another supplier
and then needed to hire a 3rd party integrator to tie HR and Payroll into
their existing systems.
Faced with costly and complicated solutions, some companies
have decided to stay with their antiquated paper based HR and Payroll
Systems. Living with all the inefficiencies experienced over the years like
on time document retrieval, transaction delays between HR and Payroll,
data duplication, missing records, security issues, clerical errors, wasted
human resources in the HR department and space consumed by all the
records. Still others thinking it less of a headache have outsourced the
entire HR operation. Only to realize, a higher cost of outsourcing and the
leakage of payroll / benefit information causing serious and lasting
personnel issues in the workplace.
So Cantier Created a HRMS it is an integrated HR and Payroll
system that manages the personnel-related tasks for managers and
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individual employees. Our HRMS supports Personnel management,
Employment management, Benefit management, Daily Time Record
Management (Integrated with Bio-Metric Devices), Shift Management,
Payroll management, Leave Management, Training Management and
Performance Evaluation. It has self-service features as well for employees
to interact with their HR department on line and thus reducing much of
HR Personnel manual work.
Source: http://www.cantier.com/products/HRMS.html
2.2.2.3 New government payroll system being studied
PhilStar posted, Budget Secretary Benjamin Diokno said yesterday
they are studying the possibility of adopting a centralized fund release
system to facilitate payroll preparation of all government agencies.
Diokno said this new system would ensure that salaries and
benefits of government employees are received on a more timely and
regular basis.
The centralized fund system, he said, is one of the budgetary
reforms being undertaken by the Department of Budget and Management
(DBM) under the Estrada administration to improve cash management and
enhance efficient utilization of government resources.
As this developed, Diokno also said that they have released a total
of P8.1 billion representing cash requirements for payment of the second
half of this year’s bonus and cash gift of government workers. Diokno said
this would allay fears that the DBM might delay the payment of
government agencies employees; year-end bonus and cash gift.
"Government agencies should have already paid by now the yearend benefit and cash gift of their employees because the DBM already
released the amount as early as the first week of November," he said.
He said bulk of the P8.1 billion would go to the Department of
Education, Culture and Sports (DECS) which will get some P3.7 billion
for the payment of year-end benefits of public school teachers; the
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Department of Interior and Local Government which will get P893.2
million for policemen, firemen and jailguards; and the Department of
National Defense which will get some P786.1 million for military and
civilian personnel.
"With the existing fund release system, there is no reason why
agencies would not be able to give the year-end benefits of their
employees within the Nov. 15 to 30 requirements," he said.
The budget chief said he would also look into the payroll system of
those offices that have not yet given the benefits to their employees.
Source:http://www.philstar.com/business/98279/new-government-payrollsystembeing-studied
2.2.2.4
DBM:
Digitized
Government
payroll
will
promote
Transparency, Efficiency
MANILA, July 31 — According to PCOO, The Department of
Budget and Management (DBM) Secretary Florencio Abad today
highlighted the role of the National Payroll System (NPS) in the Aquino
administration’s drive for increased transparency and accountability in the
Philippine bureaucracy, adding that the move to reform the existing
payroll system will also facilitate the quick and efficient processing of
employee salaries and benefits across government.
“As a fully automated and digitized system, the NPS will play a
central role in ensuring greater efficiency, transparency, and accountability
in the government’s human resource processes. And because the system
will be completely electronic, all payroll-related activities will be
implemented more quickly and with better accuracy, whether we’re
talking about the distribution of monthly salaries due to government
workers, or the regular monthly remittances that are made out to our
employees’ social security and health insurance accounts,” Budget and
Management
Secretary
Florencio
“Butch”
Abad
said.
The
Administration’s Public Financial Management (PFM) Committee of
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which the Department of Budget and Management is a member—has been
tasked to develop the centralizing software for the NPS, which will be
pilot-tested in select agencies at the end of the year. The NPS is also a
component of the larger Government Human Resource Information
System (GHRIS), which will harmonize and unify all human resource
management operations in government, from the recruitment phase all the
way to retirement. Completion of the GHRIS is expected in the second
quarter of 2014. “We want to make it clear, however, that the DBM will
not exert control over the personnel requirements of agencies. Together
with the other members of the PFM Committee, we are only developing
the software that will make payroll reform possible in the bureaucracy,”
Abad added.
Under the reformed and digitized payroll system, agencies will
continue to have discretion over their respective human resource and
personnel requirements. This will be expressed in a Monthly Cash Plan
relating to Personnel Services that will be submitted to the Bureau of
Treasury (BTr), which will in turn provide a payment file to the proper
bank for the timely processing of employee salaries. According to the
DBM, agencies will be asked to establish Automated Teller Machine
(ATM) payroll accounts for all their employees to allow for the electronic
distribution of monthly salaries. Government servicing banks—such as
Land Bank and the Development Bank of the Philippines (DBP)—will be
prioritized, although other banks may also be proposed should Land Bank
or DBP ATMs be unavailable for use in a particular area.
Apart from facilitating the prompt release of salaries and benefits
to government workers, the NPS will also ensure the timely remittance of
withholding fees to the Bureau of Internal Revenue, Government Service
Insurance System, Pag-ibig Fund, and PhilHealth. “Switching to electronic
means for the management of payroll processes is hardly a new concept. It
is par for the course in the private sector, where companies are able to
generate significant cost savings by abolishing check payments and the
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manual processing of monthly salaries and withholding fees. Similarly, the
NPS will relieve the government’s human resource units from the burden
of handling cash and manually keeping track of all payroll activities,”
Abad said.
“It is, very simply, a matter of government finally keeping up with
the times, where we do away with an outdated and grossly inefficient
approach to personnel compensation in favor of an electronic payroll
system that makes every transaction quick, verifiable, and transparent,” he
added. Abad also noted that the NPS will be a valuable instrument in
eliminating ghost employees and preventing other payroll-related
irregularities in the bureaucracy. “To qualify for an ATM payroll account,
you must apply for it in person with proper identification and the
necessary endorsement from your mother agency. An agency’s payroll
database should also agree with the bank’s own records. In other words,
ghost employees won’t stand a chance under such strict standards. We’re
making it much harder—if not impossible—for unscrupulous individuals
to corrupt the government’s payroll system to their advantage.
“Best of all, the NPS will make it possible for all government
employees to get their pay right on time, with all their remittances
automatically made for them and their proper taxes withheld.
Source:http://asianjournal.com/news/dbm-digitized-govt-payroll-willpromote-transparency-efficiency/
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2.2.2.5 Payroll System with Daily Time Record Using Bio-Metric
Authentication
According to the article of Ms. Felice Grazille M. Adlaon, the aim
of this project is to identify and solve the problems concerning the Payroll
and Daily Time Record System of DBA enterprise – a fast growing
company which caters direct selling of AVON products throughout
Mindanao. The company experiences some concerns on monitoring the
attendances of their employees and the computation of the payroll of each
employee.
The traditional payroll and daily time record system could no
longer cope with the number of branches they have all over Mindanao.
Through the analysis made by the proponents, it has been found that
Payroll System with Daily Time Record using Biometric Authentication
may solve the current problems of the company.
The study covered the cost of the proposed system, its operational
functions, its benefits and its impact towards the company. The project
was completed within the time span of three semesters (Academic Years
2008-2009 to 2009-2010). After the testing and evaluation, it was
concluded that the automated Payroll System with Daily Time Record is
really beneficial to the company.
The system facilitates the generation of payroll and monitoring of
attendances in a cheaper, easier and faster way. It could reduce failure of
reporting and analysis, and could provide timely and accurate
reliability/quality reports.
Source:http://ejournals.ph/index.php?journal=CLOUD&page=article&op=
view&path%5B%5D=6628
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2.3 Synthesis and Relevance to the Study
In a company, payroll is the sum of all financial records of salaries for an
employee, wages, bonuses and deductions. The primary mission of the payroll
department is to ensure that all employees are paid accurately and timely with the correct
withholdings and deductions, and to ensure the withholdings and deductions are remitted
in a timely manner. This includes salary payments, tax withholdings, and deductions
from a paycheck (http://en.wikipedia.org/wiki/Payroll).
The proponents believe that each and every literature and studies stated in this
research is similar on the proposed system. The proponents relate and differentiate the
research based on the flow of their existing system from the proposed payroll system.
The existing system of the companies both foreign and local is efficient and effective to
use but as the technology grows enterprises should also upgrade their existing system to
be more reliable and effective to use.
The proponents will create payroll system for local government unit that is userfriendly, accurate, reliable and effective to use than the existing system of both foreign
and local companies stated on this research.
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