BACKGROUND OF THE STUDY
Computers are truly amazing machines. They are marvels of the modern age. They in fact make the modern age what it is. Without computers we would not have access to the knowledge and comforts that we now take for granted. But what exactly makes them so powerful? The power of computers rests in their ability to process information for us. The faster they do this, the faster we can solve problems and arrive at solutions that are reasonably correct to an extent. Computers have improved over the years and are now so fast that problems and calculations that used to take many years can be solved in fractions of a second. Because of their amazing success in problem solving, computers have been integrated into practically every aspect of our lives. Scientists, mathematicians and accountants have especially turned to the computer as a tool to investigate the accounting world. In fact, many feel like the computer can simulate nature, even life itself. Scientists have created computer programs that apparently show how life grows, competes, changes, and of course, evolves. The computer itself has even been compared to a living creature. Many feel that someday computers will arrive at a point of human-like intelligence and self-awareness with the rate the computer is evolving. Ever since man discovered the computer and hence computer science, several attempts have been made to computerize every facet of human life. This project work looks at the issue of computerizing the payroll accounting system with inherent advantages (speed and accuracy) over the more tedious inefficient and time consuming manual system. The usual system encountered problems like late receipt of raw data each month, regular break down of the accountant machine presently used for data processing, irregular power supply, many errors resulting from the manual methods of data processing and the office caused by bulky files and constant complaints for errors from the workers. Consequently a computerized payroll accounting system is designed to take care of the above problems. Computer, the versatile data processing machine has been found very useful in every human endeavour since its incursion into many fields of study, industry, business, sciences and technology in general. Payroll is being prepared by organization, committees, governments and other business firms; it is also part of account department. It is used for the preparation of worker’s salary daily, weekly or monthly. The payroll module which helps in data processing, processes monthly pay of all the employees in an establishment. The module maintains staff loans, advances, tax and other deductions from staff pay. It also performs annual increment on the salary of qualified staff each month. The payroll list every employee for whom the computer has produced a payroll and shows for each employee what deductions are subtracted from gross earnings to arrive at net pay. These reports are reviewed by the manager of the payroll department before the cheques are released for distribution.
Over the years, manual method of payroll has been used. This method has its problems. It has been proven to be very ineffective and inefficient. Employers are responsible for ensuring that their employees are paid accurately and timely. To accomplish this feat, employers often use a payroll system. All traditional payroll systems have their own method of payroll processing. Although they can provide invaluable payroll services to employers, there are some problems to using them. Some of the problems are: 1.2.1
An outsourced or external payroll system is used when an employer assigns the bulk of his payroll tasks to a payroll supplier. Payroll chores include complete payroll processing and tax filings. Many employers outsource their payroll because it is relatively inexpensive and relieves them of payroll processing...
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