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Chapter 3 Essay

1442 words - 6 pages

I. Introduction

For almost 6 yrs. Luz Banzon Multi-purpose Cooperative is using excel
system for their payroll. Exerting more effort and time, facilitator calculates and records the employee’s salary. Sometimes one mistake can be mistake of everything, starting again from the beginning. This is the reason why this research is aiming to upgrade their current payroll system.

Computerized payroll system automates many functions, which saves both time and resources. It automatically figures, such us employee’s earnings, based on inputs. The computerized system keeps it organized so you can access and update data it electronically as needed. Computerized payroll system also decrease error ...view middle of the document...

into the
computer. The computer calculates an with holding taxes and other
deduction and accumulates and updates the earnings and with holding.

After entering payroll transaction data for the currency pay period. A
Payroll report maybe displayed to verify the earnings and with holding for the month, quarter, and year next, the current payroll and employers payroll salary expense and with holding liabilities journal entries are automatically generated and posted to the general ledger.

Now a day’s all establishment are becoming in organized, they use modern Technologies to make their transaction fast, easy and accurate in order to avoid waste of time and for the sake of safety and security.

1.2 Historical Background of study

Few years ago the church of Luz Banzon Pentacostal decided to establish a cooperative to help people, have work to support their families and that cooperative was named “UFAMCO” which means United Family Multi-Purpose Cooperative. It started on April 2008. It was being managed by Mr. Danilo Timario. UFAMCO celebrated their 1st Anniversary and renamed their company into LUBAMCO (Luz Banzon Multi-purpose Cooperative).

LUBAMCO is the only Multi-Purpose Cooperative in Luz Banzon. This cooperative is an agency in Pilipinas Kao. LUBAMCO is the one incharge in finding workers for Pilipinas Kao. They hold a large group of employees and they supply the man power needs of their mother company.

In its 5 years of existence, LUBAMCO is still not properly develop, especially on their payroll system and on their employees record. Since they hold a large group of employee they need to enhance their system to make it easy for them to manage all the credentials of their employees. Especially on their payroll system. Up to this days they only uses an ordinary excel to compute and record their employee’s salary.


The purpose of this study is to make a design of computerized payroll system which can make the payroll in-change job easy, accurate, and fast.

Comparing and differentiating between the visual and excel system, they can both calculate and store data. However in the Excel, a mistake can be mistake of everything, and if wrong value is entered, one have to recompute for the answer, one will need a pencil, eraser, and calculator again .

1.4 Statement of the problem

Luz Banzon Multi –purpose Cooperative they don’t have a program for computerized payroll system, they only used a Microsoft Excel. They wanted a computerized payroll system in order them to perform or making a payroll, in fact there is already program for them to make a payroll easier to them, but the cooperative don’t have enough fund to pay the program. Using Microsoft Excel to create a payroll several times they encountered a problem like charging something to worker, exchanging salaries, wrong computations.

However, worker’s in Luz Banzon Multi-purpose Cooperative complain to the office that...

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