2015

PAYROLL SYSTEM PROJECTS

BERESA ABEBE

I’M VERY HAPPY TO

DISPLAY THE FIRST
SEMISTER OF
FUNDAMENTAL DATABASE
COMPUTER SCIENCE STUDENT
PROJECT USING MY SQL
AT WOLLEGA UNIVERSITY
NEKEMTE, OROMIA,
SOFTWARE
ETHIOPIA
+251917361283
[email protected]
[email protected]
 PAYROLL SYSTEM PROJECTS

Chapter-1
Introduction
1. PROJECT BACKGROUND
This chapter provides an introduction to the project, existing problems, and ways to solve the
existing problems. This payroll management system project is some of its entity and attributes
are very similar to that of company database, but this project selects only few of company
database entities and attributes. As a general to indicate payroll management system this project
contains three chapters those are:
1. Chapter one about the background of the projects
2. Chapter two about the system design of projects
3. Chapter three about the physical implementation of projects
At the end of the project theirs is conclusion about the payroll management system project.
1.1 Project Outline
Current salary system is manual therefore this wants to switch to an automated computerized
salary management system. After building this system we have to integrate it with the existing
computerized system that uses MYSQL server 2005.
The existing system dealing with the client registrations, keeping records of clients, client billing
Hence we can say, employee payroll system will be a subpart of the existing computerized
system. The managers or team leaders of this organization are able to fill out all necessary
information of an employee, i.e., residential address, social security number, type of salary fixed,
monthly or hourly and other relevant information. Moreover, the system should be able to
calculate tax deductions of every employee on monthly basis, throughout offices nationwide,
annually. Finally, the tax files should be sent to tax office.
1.2 Problem Identification
They also have to calculate and keep record of tax of whole organization and maintain tax files
manually. The management of organization also has to deal with bank files manually. All this
work requires a lot of paper work, is extremely time consuming job, and accordingly costly as
well as they have to hire more man power. Since there is always a risk of human errors present in
a manual system so the chances of errors are very high and to figure out such errors is also a very
lengthy procedure. Therefore, this project is decided to switch from a manual system to My SQL
computerized payroll management system.
The requirement of this project is to develop a My SQL based project that is able to deal with
salary and tax calculation of employees within the organization and maintain its data base.
1.3 Existing problem
Presently salary calculation is done manually, it take so much of time to compose salary of all
employees. It also takes very long time to make salary slip ready. Due to manual process some
time it takes very long time, in turn it delays the salary distribution. This is a big problem to
manage when salary is not generated in time. The other main problem is errors, even with double

Payroll projects Page 2

 PAYROLL SYSTEM PROJECTS

cross check here or there some errors will happen, this again create large problem. To solve all
this organization requires very good software to take care of all these

1.4 Proposed system

The proposed software will solve all the problems they are facing now. This software is designed
such way that it will generate the salary automatically every month in time. So there not much
worries. This software also equipped with to enter the attendance of each employee in the
organization, it help them to track each employee attendance, based on this we can generate the
salary. The software built to generate individual pay slip and summary of the payroll.

Terminology Definition
This section gives a definition and explanation of some of the terms used in the project:
Employee Data: This is the employee's information in the company. It consists of the employee
identification number, employee name, address, sex, pay rate, pension plan flag, and union
member flag.
Payroll Records: The payroll records are used to store each month’s hours worked, and the rates
for that month.
Rates: Rates consists of the percentage that would be deducted from the gross pay depending on
pension plan, state and federal tax. Each employee can have a unique hourly rate.
Payroll Ledger: This is a table that shows the calculated pay of employees and the month in
which they earned the pay. The ledger can be filtered by name, identification number, year and
month.
Hours Worked: This is the number of times that an employee works in a month. The hours
worked is used to calculate the pay that an employee will receive for that month.
Net Pay: The net pay is the final salary amount that would be given to the employee after all the
deductions are subtracted from the gross pay. The deductions include among others taxes, union
member dues and pension plan.
Gross Pay: The gross pay is the amount that the employee earns before the deductions are
subtracted.
Deductions: Deductions are made up of taxes, union membership dues, pension plan. They are
subtracted from the gross pay to give the net pay which is the employee's final pay for the month.
Taxes: The tax consists of the state dues and federal dues. A percentage of the employee's salary
goes to state and country.
Pension Plan: Employees that opted to use the pension plan of the company get to pay a
particular percentage of their pay in preparation for their retirement.

Payroll projects Page 3

 PAYROLL SYSTEM PROJECTS

Chapter-2
System Design
2. SYSTEM DESIGN
2.1 CONCEPTUAL DESIGN
A) PAYROLL ENTITIES
1. EMPLOYEE
(Name, SSN, address, sex, salary, dnumber,
2. PAYROLL RECORDS
Hourly worked, rateofmonth, SSN
3. PAYROLL LEDGER
Name, SSN, date
4. DEPARTMENT
Dname, dnumber, multivalued location,
5. PAYMENT
Salary, Payrate, pension , netpay, Grosspay, deduction, tax,
6. PROJECT
Unique Pname, Pnumber, dnumber
B) ATTRIBUTIES AND THEIR DATA TYPES FOR THE ENTITIES, CONSTRAINTS
IF ANY
1. EMPLOYEE
Attribute-----------------Data Type------------------Constraints
Name-----------------------------string ---------------------------NOT NULL,
SSN-------------------------------string ------------------primary key NOT NULL,
Address---------------------------string --------------------------NOT NULL,
Sex---------------------------------char---------------------,
Hourlyworked--------------------integer-------------------,
Salary------------------------------real------------------------ foreign key NOT NULL,
Dnumber-------------------------string----------------------foreign key NOT NULL,
2. PAYROLL RECORDS
Attribute-----------------Data Type-------------------Constraints
Hourlyworked-------------------integer-------------------primary key NOT NULL
Rateofmonth---------------------real------------------------------
SSN--------------------------------string-----------------foreign key NOT NULL
3. PAYROLL LEDGER
Attribute-----------------Data Type-------------------Constraints
SSN-------------------------------string----------------primary key NOT NULL,
Date------------------------------string--------------------------NOT NU

Payroll projects Page 4

 PAYROLL SYSTEM PROJECTS

4. DEPARTMENT
Attribute-------------------Data type-------------------Constraints
Dname---------------------------string--------------------------------Unique,
Dnumber------------------------string----------------primary key NOT NULL,
Location--------------------------string-----------------------------,
5. PAYMENT
Attribute------------------Data type-----------------------------Constraints
Salary-----------------------------real------------------primary key NOT NULL,
Payrate----------------------------real----------------------------------NOT NULL,
Pension---------------------------real---------------------------------NOT NULL,
Tax--------------------------------real---------------------------------NOT NULL,
Deduction------------------------real----------------------------------NOT NULL,
6. PROJECTS
Attributes----------------Data type-----------------------Constraints
Pnumber-------------------------integer-------------------primary key NO NULL,
Pname----------------------------String---------------------------------Unique,

C) KEYS ATTRIBUTES AND FOREIGN KEYS

i. EMPLOYEE
Attributes----------------------------------------Key types
SSN------------------------------------------------primary key,
dnumber-------------------------------foreign key references Department,
Salary------------------------------------foreign key references Payment,
ii. PAYROLL
Attributes----------------------------------------Key types
Hourlyworked---------------------------------------------primary key
SSN-----------------------------------------------------foreign key
iii. LEDGER
Attributes------------------------------------Key types
SSN-----------------------------------------Primary key and foreign key
iv. DEPARTMENT
Attributes-----------------------------------Key types
Dnumber------------------------------------primary key,
v. PAYMENT
Attributes------------------------------------Key types
Salary-----------------------------------------primary key
vi. PROJECTS
Attributes------------------------------------Key type
Pnumber--------------------------------------primary key
Dnumber--------------------------------------foreign key
D) RELATIONSHIP BETWEEN ENTITIES
a. Between Employee and Department
The relationship is many-to-many Because Many employers can work in many
departments.
Diagrammatically,

Payroll projects Page 5

 PAYROLL SYSTEM PROJECTS

Employee ∞ Works-in ∞
Department

Also from many Employees the manager of Departments is one because of this
the relationship between Employee and Department here is one-to-many.
Diagrammatically,

Employee Manages Department

b. Between Employee and Payroll

The relationship between Employee and Payroll is one-to-many because one
employee can have the same hours of work rates.
Diagrammatically,
∞ 1
Employee Have
Payroll

c. Between Employee and Ledger

The relationship between employee and ledger is many-to-one because ledger
table shows the month in which employees earned their pay.
Diagrammatically,
Employee Earn Ledger

d. Between Employee and payment

The relationship between Employee and payment is many-to-many because for
many Employees different salary is paid.
Diagrammatically,
∞ ∞
Employee Paid Payment

e. Between Employee and Projects

The relationship between Employee and Project is many-to-many because many
employees participate in many projects and works on that project.
Diagrammatically,
Employee Works on Projects

f. Between Department and projects

The relationship between Departments and project is one-to-many because one
department only can controls so much projects.

Payroll projects Page 6

 PAYROLL SYSTEM PROJECTS

Diagrammatically,

Department Controls Project

E) CARDINALITY RATIO
The possible cardinality ratios for binary relationship types are 1:1, 1: N, N: 1, and M: N.
1. The cardinality ratio between Employee and Department there is M: N ratio.
2. The cardinality ratio between Employee and payroll there is M: 1 ratio.
3. The cardinality ratio between Employee and Ledger there is 1:1 ratio.
4. The cardinality ratio between Employee and Payment there is M:N ratio.

F) PARTIAL AND TOTAL PARTICIPATION

The relation of partiality and totality of entities exist in payroll system are:
1. The relationship of Department and Employee is Total every employee participates in
the departments and works in those departme
Diagrammatically these relationships is shown below respectively

Employee Works- Department

for

2. The relation between Employee and Payroll many-to-one since many employer can
have the same hours of works rate.
Diagrammatically it is shown as bellows

Employee Have Payroll

3. The relation between Employee and ledger is Partial because Every employee
participate to earn their pay in the same or one month.
Diagrammatically this can be shown as:

Employee Earn Ledger

4. The relationship between Employee and Payment entity is total participation because
every employee participates in the earning of theirs payments in every month.
Diagrammatically this can be shown as follows:

Employee Paid Payment

Payroll projects Page 7

 PAYROLL SYSTEM PROJECTS

5. The relationship between Employee and project can be total participation because in
many projects many employees participate to achieve their goals.
Diagrammatically this participation is shown as:

Employee Works on Projects

6. The participation of Department to project is partial because every department does

not participate in the every project and control every projects.
Diagrammatically this participation is shown as:

Department Controls Projects

G) THE ROLE (ROLE NAME ) OF EACH RELATION

Since, the definition for role name signifies the role that a participating entity from the entity type
plays in each relationship instance, and helps to explain what the relationship means.
Those role names are:
i. Between Employee and Department works-for
ii. Between Employee and payroll have
iii. Between Employee and ledger is earn
iv. Between Employee and Payment is paid
v. Between Employee and Project works on
vi. Between Department and Projects Controls

Payroll projects Page 8

 PAYROLL SYSTEM PROJECTS

H) SKETCH THE ER DIAGRAM USING ER MODELING

Lname Dnumber
Dnumber Dname
Fname Sex SSN
Name
Mname
Employee M Works-in 1 Department

Location
Hourlyworked

1
Manages
Salary

SSN
Controls
Have

M
Hourly worked

dnumbe
Works-
Payroll on Projects
Earn

Pname
Rate of month Pnumber
Paid

Deduction
SSN Ledger
Payment Salary

Date
Name
Payrate
Tax

Pension

Payroll projects Page 9

 PAYROLL SYSTEM PROJECTS

I) MAP THE ER DIAGRAM TO THE RELATIONAL TABLE

1. Employee table:
Name SSN Salary dnumber Sex Pnumber
2. Department table:
dname dnumber Location

3. Payroll table:
Hourly worked SSN Rate of month
4. Ledger table:
SSN Date
5. Payment table:
Salary Tax Pension Payrate Deduction

6. Project table:
Pnumber Pname dnumber

2.2 LOGICAL DESIGN

• NORMALIZE YOUR RELATION
Since the entire relational table already normalized we can leave as it is, but we will take
as an example un normalized table of Employee-payment-department from the ER
diagram of payroll management system.
Unnormalized table of Employee-payment-department

Ename SSN dname salary dnumber pname pnumber

1. First normalization form (1NF)

Identify functional dependency
Employee SSN, Ename, sex
Employee-Project SSN, pnumber, salary, payrate, deduction, dnumber, dname
2. Second normalization form (2NF)
Deleting partial dependency
Employee SSN, Ename, sex
Project pnumber, SSN, salary
Project-department pnumber, dnumber, pname, dname,
3. Third normalization form (3NF)
Deleting partial dependency
Employee SSN, Ename, sex
Project pnumber, SSN, salary

Payroll projects Page 10

 PAYROLL SYSTEM PROJECTS

Prod dnumber, pnumber,

CHAPTER -3
PHSICAL DESIGN (IMPLEMENTATION)
3 Implementation
Implement the projects in the lab using SQL 2005 DATABASE SERVER
3.1 Creating entire table for the projects with the appropriate data type

create database Payroll;

use payroll;

create table department(

dname varchar(30) not null,
dnumber int not null,
location varchar(30) not null,
primary key(dnumber));

create table project(

pnumber int not null,
dnumber int not null,
pname varchar(20) not null,
primary key(pnumber),
foreign key(dnumber) references department(dnumber));

create table payment(

salary real not null,
tax real,
pension real,
deduction real,
primary key (salary));

create table emplyee(

ename varchar(30) not null,
SSN varchar(30) not null,
salary real not null,
dnumber int not null,
sex varcha not null,
pnumber int not null,
primary key(SSN),
foreign key(dnumber) references department(dnumber),
foreign key(salary) references payment(salary),
foreign key(pnumber) references project(pnumber));

create table payroll(

Payroll projects Page 11

 PAYROLL SYSTEM PROJECTS
H_worked real not null,
SSN varchar(30) not null,
R_month real not null,
primary key(H_worked, SSN),
foreign key(SSN) references employee(SSN));

create table ledger(

SSN varchar(30) not null,
Ldate varchar(10) not null,
primary key (SSN),
foreign key (SSN) references employee(SSN));
3.2 Create the appropriate relationship for your design
in SQL 2005

Payroll projects Page 12

 PAYROLL SYSTEM PROJECTS

3.3 Populate the relation with sample data

insert into department (dname, dnumber,location)
values('CS',1,'Nekemte');
insert into department (dname, dnumber,location)
values('Business',2,'Jimma');
insert into department (dname, dnumber,location)
values('IT',3,'Ambo');
insert into department (dname, dnumber,location)
values('Agri',4,'Shambu');

insert into project(pname, pnumber, dnumber)

values('sisco',001,3);
insert into project(pname, pnumber, dnumber)
values('plantscience',002,4);
insert into project(pname, pnumber, dnumber)
values('prolong',003,1);
insert into project(pname, pnumber, dnumber)
values('Marketing',004,2);

insert into payment values( 500,3,5,6);

insert into payment values( 1500,5,5,10);
insert into payment values( 5000,45,78,23);
insert into payment values( 2000,123,23,90);
insert into payment values( 3500,3,55,60);

update payment set tax=salary*0.0-0 where salary<=150;

update payment set tax=salary*0.1-15 where salary<=650;
update payment set tax=salary*0.15-47.5 where salary<=1400;
update payment set tax=salary*0.2-117.5 where salary<=2350;
update payment set tax=salary*0.25-262 where salary<=3500;
update payment set tax=salary*0.3-412.5 where salary<=5000;
update payment set tax=salary*0.35-662.5 where salary>5000;

insert into employee values('Beresa','0987',500,001,'M',1);

insert into employee values('hawii','0967',1500,003,'F',3);
insert into employee values('Bontu','0900',3500,002,'F',4);
insert into employee values('Megersa','0345',5000,004,'M',2);
insert into employee values('Bula','0768',2000,002,'M',3);
insert into employee values('Abdena','0842',500,001,'M',1);
insert into employee values('Gemada','0917',5000,002,'M',4);

Payroll projects Page 13

 PAYROLL SYSTEM PROJECTS
insert into payroll values(1,'0987',54);
insert into payroll values(4,'0917',34);
insert into payroll values(2,'0768',23);
insert into payroll values(3,'0987',54);

select * from payroll;

insert into ledger values('0987','12/05/2007');

insert into ledger values('0768','16/06/2007');
insert into ledger values('0917','13/03/2007');
insert into ledger values('0345','12/08/2007');
insert into ledger values('0842','12/05/2007');

select * from ledger;

3.4 Generate at least 10 important SQL queries

1. Inserting the entire data to the each tables
2. Update the entire data- this update is more
applicable in the payment table to calculate tax,
pension, deduction and all the calculation parts
held in the payroll management system.
3. Select to select and retrieve all the table entries
with their attributes.
4. Delete to remove a single attributes from the
payrolls table in the payroll management system.
5. Nested query
SELECT * FROM employee WHERE SSN IS
NULL;
SELECT DISTINCT SSN FROM employee
WHERE (Pno, Hours) IN (SELECT Pno,
Hours FROM employee WHERE
SSN=‘0987’);

Payroll projects Page 14

 PAYROLL SYSTEM PROJECTS

6. Remove table payments, employee and ledger

Drop table payment;
Drop table ledger;
Drop table employee;
7. Count all employee their salary is less than 500

Select count(*) as count_ from employee e,

payment p where e.SSN=p.SSN and
salary<500;
8. Sum all the payments attribute
SELECT SUM (Salary) as sum_salary from
payment;
Select sum(pension) as sum_pension from
payment;
Select sum(deduction) as sum_deduction
from payment;
9. MAX and MIN of all the salary, pension, tax,
deduction
Select max(salary) as Max_salary,
min(salary) as min_salary, max(pension) as
max_pension, min(pension) as min_pension,
max(tax) as max_pension,max(deduction) as
max_deduction, min(deduction) as
min_deduction from payment;
10.Average of salary
Select avg(salary) as Avg_salary from
payment;

Payroll projects Page 15