Design And Implementation Of An Automated Payroll System (A Case Study Of Federal Polytechnic Nekede, Owerri)

Project and Seminar Material for Computer Science and Computer Engineering

Project and Seminar Material for Computer Science and Computer Engineering


The manual method or mode of paying salaries are becoming obsolete, giving way to the modern system referred to as computerized system. The extension have even taken workers from their office bursary pay-point to the banks where salaries are paid straight into their respective accounts. This was made possible by the addition of computer system in the payroll departments.

Computers have aided the process of payroll computations and this has reduced the tedious nature of payroll computations, now with computers every bit is done acidulously and accurately, timely generation of pay-slips and summary are parts and parcel of benefit of automated payroll system as the research revealed.

In a nutshell, the automated processes have given rise to:

  1. Faster processing and retrieval of payroll data.
  2. Relief in repetitive clerical work and cost of duplication
  3. High storage capacity of the generated data.
  4. Keeps records in balance, making tax time easier.

It was proved the following that computer is always accurate in dealing with numerical data based on input given to it, that automation is the best solution for payroll system

Table Of Contents

Preliminary Page(s)

  • Title page
  • Approval page
  • Dedication
  • Acknowledgement
  • Abstract
  • Table of contents

Chapter One


  • 1.1 Background of the study
  • 1.2 Statement of the problem
  • 1.3 Significance of the study
  • 1.4 Objective of the study
  • 1.5 Scope and limitations of the study
  • 1.6 Definition of terms

Chapter Two

Review of Related Literatures

  • 2.1 Introduction
  • 2.2 Computer definitions
  • 2.3 History and development of computer system
  • 2.4 Classification of computer
  • 2.5 Automation and its merits and demerits
  • 2.6 Payroll system

Chapter Three

System Analysis and Design

  • 3.1 Introduction
  • 3.2 System investigation
  • 3.3 Sources of data
  • 3.4 Method of data collection
  • 3.5 Analysis of data findings
  • 3.6 Method of data analysis
  • 3.7 Procedural chart of the existing system
  • 3.8 Problems of existing system
  • 3.9 Proposal of new system
  • 3.10 Objectives of the new system
  • 3.11 Approach of new system
  • 3.12 Design of the new system
  • 3.13 program flow chart
  • 3.14 input/output specification
  • 3.15 file/database specification-

Chapter Four

System Implementation

  • 4.1 Introduction
  • 4.2 Justification of the programming language
  • 4.3 System requirement
  • 4.4 Implementation details
  • 4.5 Installation and maintenance

Chapter Five

Summary, Conclusion and Recommendations

  • 5.1 Introduction
  • 5.2 Summary
  • 5.3 Conclusion
  • 5.4 Recommendation
  • References
  • Appendix

Chapter One


1.1 Background Of The Study

Like any other unit in an organization, the payroll department is one of the major units in every organization set up with groups of employees rendering services, so that at the end of the month, the workers would expect some entitlement inform of wages when it is paid on weekly basis or salary when it is paid monthly.

It is the sum total of this payment that are paid to a worker at the end of the week or month that makes up the personal evolvement constitutes the payroll system. Although payroll is not computed on daily basis. It still needs a prompt system to ensure proficiency and one of such system include automation, which is the use of machine such as computer system and its aids to accomplish payroll procedures. However, the payroll system will centre on the use of automated process to minimize the slow method of repetitive clerical work and cost of duplication in payroll system as could be seen in Federal Polytechnic Nekede payroll department.

The researcher employed all necessary strategy to ensure that reliable facts are gathered to help the payroll department in solving the problems they have being encountering in the previous times when they were operating with the manual method (uncomputerised method).

Background Of Federal Polytechnic Nekede

Among the great organization and big institution is Federal Polytechnic Nekede Owerri, a tertiary institution with several employees working in the different department to achieve the set out objective of educating the human person. By edict No. 16 of 1978, the college of Technology, Owerri was established. It opened for classes on 15th December, 1978 at a temporary site in the premises of the government trade centre, along Egbu Road Owerri, with an initial in-take of 275 students. In October, 1980, the college moved to its permanent site at Nekede near Owerri, by which time the college had grown to 1,350. The name of the college was later changed to the Polytechnic, Nekede, Owerri by Federal Amendment of Decree 1993 of 1st January, 1993.

The Federal polytechnic is at present organized into the schools of:

  1. Business Administration and Management Technology which offers courses such as Accountancy, Public Administration, Banking/Finance etc.
  2. Engineering Technology which offers courses such as Mechanical engineering, Civil engineering, Computer science etc.
  3. Environmental design which offers courses like building technology, architectural etc.
  4. Industrial sciences which offers courses like science technology, food technology etc.
  5. General studies which offers courses like Mathematics, Statistics, humanities etc.

Each of the above mentioned schools is headed by a Dean and all the schools have department also headed by a HOD (head of department). The non-academic divisions and units’ include the registry, bursary, works, medical and health services and the student’s affairs. The units are:

Security, internal audit and public relations which are however, housed under the office of the rectory.

The computations of payroll of employees are carried out by the payroll department attached to the bursary and headed by a qualified payroll officer

1.2 Statement Of The Problem

The problem of the investigation is based on the following:

  1. To find what automation means to payroll
  2. To identify and examine critically the problem encountered as a result of; automation Teller machine.
  3. To examine and identify the merit of automation for the institution and employees
  4. To consult different authorities in the fields as to ascertain the desirability or otherwise of using automated teller machine..
  5. To develop ways of improving on human inefficiency by using computer efficiency.
  6. To evaluate the role of computer towards the development of a computer based system ATM
  7. To find out the extent of problems associated with the provision of these services, with a view to provide solutions to these problems.

1.3 Significance Of The Study

It is obvious to note that this project work will enlighten readers and serve as bedrock for information analysis on comprehensive automation of payroll system. In addition, this study will be useful in the achievement of a smooth and efficient educational system in the country, because when a worker gets his entitlement, industrial peace is rest assured.

This study is considered significant in the following ways:

  1. It would help to determined how automation of payroll would contribute to industrial peace.
  2. The study would help to reveal how to enhance the efficiency and effectiveness of a worker.
  3. It will serve as wealth of knowledge to tap from on research related to payroll automation.

1.4 Objectives Of Study

The computation of payroll data is an important factor in achievement of industrial peace, this study is to examine the tedious cumbersome and demerit of the manual method of calculating, compiling, sorting and disbursement of workers pay in the payroll department of federal polytechnic Nekede, Owerri and provision of alternative automated system to eliminate the manual problems entirely.

This study among the above

  1. Provision of quick access and retrieval of data through the use of computer storage facilities like hard disk and floppy disk.
  2. Provision of faster and time short in the condition of payroll computation.
  3. Provision of easy operation and guidance for future researchers.
  4. Provision of accurate, reliable and true data of employees payroll and pay slip.
  5. Provision of relief in tedious repetitive clerical work and cost of duplicating files while computing payroll.

1.5 Scope And Limitation Of The Study


the automation of payroll system is a wide topic, but this project will be based on the automation of payroll for federal polytechnic Nekede, Owerri selected staff.


already, there are very few texts that deal exhaustively with automation of payroll. Lock of right research materials offers the first constraint to this study. Apart from lack of material, the few ones were very expensive.

1.6 Definition Of Terms

An attempt has been made to explain terms used in this study, but nevertheless the more technical terms would be defined as the text progresses if the need arises.


An electronic device that is designed in such a way that it accepts data as input, process these data and gives out a result.


This idea of converting the manual process of doing or solving the problem into a machine form to help in solving the problems.


The personal month emolument of an employee produced by the payroll department of the employer.

Pay Slip:

The slip handed to the employee on receipt of his pay, describing the basic salary, allowances and taxable income deductions.

Payroll Sheet:

A sheet that contains the entire pay of the workers in a months schedule for documentation in the office.


An interrelated, interdependent component parts working in line as to achieve a common goal such as developing a payroll.


A collection of integrated and related files.


Retrieving is the process of locating the stored data and making them available for other processing activities.

Pay Advice:

Is the same as pay-slip, it tells how much worker is owned.

Summary Sheet:

This is a sheet used by the personnel in charge to summarize each monthly salary.

Bank Schedule:

This is the document, which emanate from the bursar containing individual staffs of federal polytechnic Nekede and their individual bank, instructing the bank to credit the staff with specified amount.


Harmonized allowance for tertiary institutions salary scale.

Chapter Five

Summary, Conclusion And Recommendation

5.1 Introduction

In this chapter, the researcher tries to investigate the usefulness and the need for organization to be computerized in their accounting or bursary department for easy running of the organization.

5.2 Summary

Computer being a sophisticated electronic device is supposed to be able to handle with great care. All the fast processing device do not turn to be fraud processing machine because using computer to handle financial transaction like payroll demands serious security measure to keep off-unauthorized users.

The system should be located in a lean and well ventilated room away from industrial machine capable of generating magnetic field that can wipe the stored program. As payroll is desires to be processed fast, automation still remains the key to realization of the dream of fast process. Staff of the polytechnic should experience some delay while the files are being converted but clarity should serve the purpose of sustenance when finally the system is in place.

5.3 Conclusion

The need for a computerized payroll system for organization with large workforce cannot be over looked and the benefit that is derived from such computerization system far outweighs the cost of procuring it. It checks frauds, saves time, provides adequate security to data and information produced is highly reliable and accurate.

Finally, it saves cost at long run; the importance of all this points can never be over emphasized. So an automated payroll system is worth the investment put into it.

5.4 Recommendation

The following recommendations are given actual implementation, test-run and maintenance.

  1. Program should be reviewed from time to time to ensure that it is running at optimal level.
  2. The computer room should be secured from data theft, hire and must be clean and the lightening system must be proper.
  3. Training must be conducted for the staff of accounting or bursary department on the use of the system.
  4. Online forms, which include pay slip and voucher, must be produced at a secured environment
  5. The standard of computer system to be used must be a Pentium system running on MS-dos 6.2 and windows 2000.
  6. The computer room must not be close to electronic motor or magnetic field to avoid malfunction and collapse of the system.
  7. Parallel changeover procedure should be adopted.

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