Pune Institute of Computer Engineering

Dhankawadi, Pune

A PROJECT REPORT

ON

Payroll Management System

SUBMITTED BY

1. Pratiksha Patare Roll No : 31457

2. Sampada Panchbhai Roll No : 31456

Under the Guidance of

Prof. Vaishali Kandhekar

DEPARTMENT OF COMPUTER ENGINEERING

Academic Year 2023-24

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 DEPARTMENT OF COMPUTER ENGINEERING
Pune Institute of Computer Technology
Dhankawadi, Pune-43

CERTIFICATE

This is to certify that the Project report entitled

“Payroll Management System”

Submitted by

1. Pratiksha Patare Roll No : 31457

2. Sampada Panchbhai Roll No : 31456

has satisfactorily completed a DBMS report under the guidance of

Prof. Vaishali Kandhekar towards the partial fulfillment of third year
Computer Engineering Semester I, Academic Year 2023-24 of
Savitribai Phule Pune University.

Prof. Vaishali Kandhekar Dr. Geetanjali Kale

(Subject Teacher) (H. O. D)

Place: Pune
Date : / /

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 INDEX

Sr
No. Title Page No
1. Abstract 1
2. Introduction 2
3. Objectives of Payroll Management System 3
4. Actual Resources Used 3
5. Algorithm 4
6. ER Diagram 5
7. Use Case Diagram 5
8. DFD Diagram 6
9. Output 7-10
10. Future Scope 11
11. Conclusion 12
12. References 12

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 Abstract
A Payroll Management System is an integral component of modern organizational
operations, providing efficient and accurate solutions for managing employee compensation and
related financial transactions. This abstract provides an overview of the key features and benefits
of a Payroll Management System. Payroll management is a critical task for businesses of all sizes,
and the advent of technology has significantly transformed the way organizations handle their
payroll processes. The Payroll Management System is a software application that automates and
streamlines the entire payroll cycle, from employee data entry to salary disbursement. It offers a
range of functions, including employee record management, attendance tracking, tax calculations,
and generating payslips. One of the primary advantages of a Payroll Management System is its
ability to enhance accuracy. Manual payroll processing is prone to human errors, which can lead
to compliance issues and employee dissatisfaction. The automation of calculations and deductions
ensures that employees are paid accurately and on time, reducing the risk of errors and potential
legal complications. Additionally, a Payroll Management System simplifies compliance with tax
regulations and other statutory requirements. It automatically calculates and withholds taxes,
contributions, and deductions, ensuring that organizations remain in compliance with government
regulations. This feature helps companies avoid costly penalties and audits. Another critical benefit
is the efficiency and time-saving aspect of the system. With manual payroll processing, the HR
department would spend a considerable amount of time performing routine administrative tasks.
The Payroll Management System reduces the administrative burden, allowing HR professionals to
focus on more strategic and value-added activities. The system also enhances data security by
centralizing sensitive employee information and providing role-based access control. This
safeguards confidential information and ensures that only authorized personnel can access and
modify employee records.

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 Introduction
Moving on, this payroll management system project in PHP focuses mainly on dealing with
employees regarding their respective payroll with overtime pay, bonus, deductions, and
maintaining employee attendance as well. Also, the system allows inserting employee records as
well as displays all the available data such as employee’s name, contact, department, type, etc. The
project is divided into two categories: Admin panel and Employee Panel. In an overview of this
web app, the admin has access to manage employees as well as their payroll details. Talking more
about the project, the admin has rights to list all the pay heads and upcoming holidays. For
maintaining his/her payroll, the admin needs to set employee’s pay heads attaching all the earnings
and deduction with their respective amounts.

Later, the admin can proceed with the payroll step. But at first, the user has to select a month for
salary. Afterward, the system automatically displays a table full of employee’s information with
respective salaries, overtime amounts, and deduction amounts. With all these, the user can get
his/her net salary payable amounts. And after generating the pay slip, the employee can simply log
in through his/her account and view the salary slip. Besides, the admin can add holiday
information, date, view the total working hours of each employee. Lastly, the admin has to manage
all the leave requests simply by accepting or rejecting the request as per choice. Other than these,
other minor includes updating user profiles and changing passwords.

Employee Panel

On the other hand, an employee can simply punch in and out for marking attendance which is only
available for 24 hours; meaning once the user punches out from the system, it won’t be available
until the next day. At the very opening of the employee account, the user must fill up and complete
the profile. There are various fields such as Designation, Department, PAN Number, Blood Group,
Bank Account, Bank Name, IFSC Code, and PF A/c Number. The salary slips section lists out all
the salary-related information from the administration. In terms of leave request, he/she has to
apply for it by providing leave subject, multiple dates (if necessary), message, and leave type. The
system displays the results for it under the same table with the status badge tag. Other than these,
other minor includes updating profiles and changing passwords.

Available Features:

 Admin Panel
 Employee Panel
 Employee Attendance System
 Manage Employees
 Salary Slips
 Manage Pay heads
 Month selection for salary
 Payroll with deductions
 Employee Leave Management System
 List out Holidays
 Employee Reports

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Objectives of Payroll Management System

1. Automate Payroll Processes: Streamline and automate the entire payroll process, from data
entry to salary disbursement, reducing manual and time-consuming tasks.

2. Ensure Accuracy: Minimize errors and inaccuracies in payroll calculations, tax deductions,
and employee payments, thereby improving employee satisfaction and compliance.

3. Compliance with Legal and Tax Regulations: Ensure that the organization remains compliant
with government regulations and tax laws by automating tax calculations, withholding, and
reporting.

4. Efficiency and Time Savings: Save time and reduce administrative burdens on the HR
department by automating routine payroll tasks, allowing HR professionals to focus on more
strategic activities.

5. User-Friendly Interface: Provide an intuitive and user-friendly interface for HR professionals,

reducing the learning curve and the likelihood of errors.

6. Notifications and Alerts: Send automated notifications for important payroll-related events,
such as paydays, tax deadlines, and benefit enrollment periods.

ACTUAL RESOURCES USED

Sr. No Name of resources/material Specifications

Hardware : Computer system Computer(i3-i5 preferable) RAM
minimum 2GB and onwards
1.

Operating system Windows 10

2.

3. Browser Used Microsoft Edge,Google Chrome

4. Languages Used HTML, CSS, JavaScript,PHP

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Algorithm
Admin Panel:
1. Admin logs in to the system.
2. Admin accesses the employee management section.
 Add new employees, including their personal and payroll details.
 List and edit existing employee records.
3. Admin manages pay heads.
 Define earnings and deductions with respective amounts.
4. Admin adds holiday information.
5. Admin processes payroll.
 Select the month for salary calculation.
 System generates a table with employee information, salaries, overtime amounts,
and deduction amounts.
 Calculate net salary payable amounts.
 Generate pay slips for employees.
6. Admin manages leave requests.
 Approve or reject leave requests.
7. Admin updates user profiles.
8. Admin can change passwords.

Employee Panel:
1. Employee logs in to the system.
2. Employee marks attendance by punching in and out (available for 24 hours).
3. Employee completes their profile information.
 Provide details such as Designation, Department, PAN Number, Blood Group,
Bank Account, Bank Name, IFSC Code, and PF A/c Number.
4. Access salary-related information.
 View salary slips.
5. Apply for leave by providing:
 Leave subject
 Multiple dates (if necessary)
 Leave type
 A leave request message.
6. View the status of leave requests.
7. Update user profile information.
8. Change passwords.

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ER DIAGRAM

USE CASE DIAGRAM

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DFD DIAGRAM

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OUTPUT

1. Login Page

2. Admin Dashboard

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3. Employee Dashboard

4. Leaves

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5. Pay Heads

6. Employee Section

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7. Registration Page

8. Database Structure

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FUTURE SCOPE

The future scope for the payroll management system project is robust and multifaceted,
encompassing several strategic areas for development and enhancement. Beyond the integration
with accounting software and mobile application development, there's a clear opportunity to
explore advanced AI and automation, such as machine learning algorithms for predictive payroll
analytics. This will not only streamline tax calculations but also enable the system to proactively
identify and address potential payroll discrepancies, improving accuracy and compliance.
Moreover, the system can further evolve by incorporating advanced reporting and data
visualization tools, providing businesses with actionable insights into their payroll data. To
maintain legal compliance in an ever-changing landscape, continuous updates to ensure adherence
to new tax laws and employment regulations are essential.

Multi-language and multi-currency support should be extended to accommodate global

business operations, making it more versatile for international companies. A strong focus on data
security and GDPR compliance should remain paramount to safeguard sensitive employee
information. User training and support services should be expanded to cater to a diverse user base,
offering not just tutorials and webinars but also 24/7 customer support. Customization options
should allow businesses to adapt the system to their specific needs, while ensuring scalability
ensures that the system can adapt to the growing demands of businesses of all sizes.

Embracing blockchain technology can introduce an extra layer of security, transparency,

and auditability for payroll transactions. Transitioning to a cloud-based solution can boost
accessibility and scalability while reducing infrastructure costs. Continuous user feedback
mechanisms should be in place to capture user suggestions and concerns for ongoing
improvements. In the realm of sustainability, features like paperless payslips, energy-efficient
algorithms, and carbon footprint tracking can help companies reduce their environmental impact.
Offering an open API for third-party developers can foster a thriving ecosystem of integrations
and extensions. Utilizing machine learning for fraud detection can be instrumental in identifying
and preventing fraudulent activities, which is a growing concern for many businesses. Robust data
backup and disaster recovery measures should be in place to ensure data integrity and availability
in unforeseen events, safeguarding against data loss. Finally, expanding the system's market
presence and adapting it to international markets will be vital for reaching a wider audience.

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CONCLUSION
In summary, our payroll management system project, built with HTML, CSS, JavaScript,
and PHP, marks a significant achievement in modern workforce and financial management. It
streamlines payroll calculations, tax handling, and employee data management, offering an
efficient solution. Looking ahead, the system's future scope includes integration with accounting
software, a mobile app, advanced AI-driven features, enhanced reporting, and a commitment to
data security and compliance. With multi-language support, customization, scalability, and
sustainability features, it caters to diverse business needs. The system's adaptability, open API,
machine learning fraud detection, and robust data protection ensure its ongoing relevance,
empowering businesses to manage their workforce and financial operations efficiently.

REFERENCES
[1] “HTML and CSS: Design and Build Websites" by Jon Duckett (2011)
[2] “JavaScript: The Definitive Guide" by David Flanagan (2021)
[3] https://www.w3schools.com/

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