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.

“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: 

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 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:

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. 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:

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:

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 on-budget, 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."

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 cost-effective, 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: payroll-implementation-7000019553/

2.1.2 Local

2.1.2.1 Cagayan de Oro City Hall Computerized Payroll System

According to 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:

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 User-defined Reports (PERA, ACA, PNB, etc..) could be generated by this system.

Source:

2.1.2.3 Payrolls in Government Agencies go to Digital

According to (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:

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:

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 pension-fund contributions, Tan said transferring the payroll under the Treasury’s management would address these problems.

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:

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:

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:

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 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 high-risk 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:

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 non-standard 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 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:

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:

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.

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:

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 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:

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 year-end 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 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:

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 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 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:

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:

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 ().

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 user-friendly, accurate, reliable and effective to use than the existing system of both foreign and local companies stated on this research.

................
................

In order to avoid copyright disputes, this page is only a partial summary.

Google Online Preview   Download