Payroll Management System
Payroll Management System

Introduction of Payroll Management System:

Are you looking for a payroll management system project? We are here to help you. You can contact us. As technology has revolutionized every industry has massively improved its efficiency but improve the management of the systems in every way. The payroll management system is the core system for any organization.

It will take care of the calculation of the salary with rules which are implied by the industry differently for every employee of the company. It obviously reduces the manual work which is required to manage the paperwork and improve the reliability of the system. This payroll management system has improvised all the basic exercises to manage the salary of the employees.

This automated the whole of salary management which was previously done manually. It will be a more efficient system to rely on for the industry as it reduces the time of the operations which will basically take more time manually.

The main modules of the system:





Now to understand the working of the system properly we are required to understand what does each module does that way integration of the modules will be easy to understand the working of the whole system. It is a good practice to make the system’s module loosely coupled and more cohesive that is because then it makes it easy for the modification and changes at any single or multiple modules and not the whole system.

Making the database centralized in the company so that each authorized device can access the required information. It will also enable the industry to save the previous record easily if required in the future.

You can also check these posts:

Pre-Existing System of Payroll Management System:

The pre-existing system for this purpose is offline so doesn’t require any device or internet connection. Previously all the information was written on the papers and the employees are hired to manage the paperwork of the company. All this work will be depended on the individual’s working speed. All the employees have to synchronize the paperwork manually by communicating with each other.

This paperwork takes a lot of time and requires more space to store safely and all the additional resources required to ensure safety. In this system, there is no surety or reliability as humans are likely to make an error.

Drawbacks of Payroll Management System:

  • Required a lot of paperwork.
  • Everything is done on paper and these are highly prone to damages and require a good amount of security and space to store.
  • Required Buying of goods more frequent as compared to the online system.
  • Likely to have an error.
  • Lack of storage space for the documents.
  • If these files are less in number then it is not that big problem but if the number increases then searching for a particular document can give a personal nightmare as these are more prone to damages and even it gets the searching job done the time required to do the job is not ideal at all.
  • Require more physical work and manpower.
  • Editing is another level of problem in those paper documents the only option is to make new documents if any correction needs to be made that is not good at all for the environmental credentials.
  • No backup of the information.
  • Where all the drawbacks of the pre-existing system have been overcome in the proposed system. It definitely improves the speed by automating most of the tasks required to be done manually previously.
  • Automated systems are more reliable and efficient now a day for these types of work.

Improvements in the proposed system:

  • Does not require paperwork.
  • Only Human error while entering the information.
  • Not required much space.
  • Automatically search and sort the information.
  • Require less physical work and manpower.
  • Editing is a lot easier.

Have backup option While the proposed system offers a lot of improvement over the pre-existing but it will be at one time cost there will be a requirement of storage devices and access devices like a computer but it still has enough advantages to cover those by reducing the manpower.

It will also help in generating the report of the employee and evaluating the performance through the automated system. Although this provides safety and security from any kind of disaster and also the authorization authentication scheme provides more flexibility for the end-user of the system.

Modules of Payroll Management System:

Administration of Payroll Management System:

Administration of the industry can be a difficult process for many company directors. The administrators are responsible to leverage the company’s property and business to return stakeholders as quickly and as fully as possible. This is the backbone of any industry all the departments are managed as well as all the decision-making is done by the administration.

It will hire the employee for any type of work done required in the company. The administration has the privilege to get information about all the employees working in their department. So basically, it makes sure that the company is going in the right direction and employees’ part is to complete the project whatever provided by the administration.

An Employee of Payroll Management System:

Even after all the digitization of the industry, there will always be a requirement of an eligible employee for the correct management of events. These are the individual who works part-time or full-time by the contract of employment with the administration of the company, which could be written or oral.

Department of Payroll Management System:

These are the different fragments of the company which are divided as the department. Each department has assigned the id and name to avoid any kind of confusion. Every department has an individual head who could be in the administration. Every department works individually and provides the performance accordingly. Each department will have a manager who will manage the department.

Following are the departments a company could have:

  • Production.
  • Research and Development.
  • Purchasing.
  • Human Resource Management.
  • Account and Finance These departments are managed by the administration.
  • Each department will have the number of employees required.

Salary of Payroll Management System:

It is a periodic payment from an administration to an employee, which is decided when a contract is signed between the employee and employer. It could be different for the employees working in different departments or designation and can be paid in the different period it may be weekly, hourly and monthly or maybe hired for some special work rather than on a periodic basis.

For the business company, it could be the cost of acquiring and retaining human resources for running the company’s business operations. In accounting, salaries are recorded in payroll accounts these are just the accounts that are designated by the company where salary will be credited after the decided period.

Er Diagram of Payroll Management System:

An entity-relationship diagram (ERD) represents the relationships among entity sets stored in a database. An entity in this context is a component of data. We can say that ER diagrams illustrate the logical structure of databases. At first, peek an entity-relationship diagram that looks similar to a flowchart. It is the different symbols, and the meanings of those symbols, that make it unique.


Entities are the rectangle shape which represents entity set.


Attributes are the properties of entities. Attributes are represented by means of ellipses. Every ellipse represents one attribute and is directly connected to its entity (rectangle).

In the Payroll management system, we take the following entity shown in the figure below:


This entity will consist of details of the people working in the administration. It is the head of all other entities if we create a flow chart of the system. The people working in the administration are the staff persons that’s why they will be identified by the staff id and not the employee is.


This entity will consist of details of the people working in the administration. It is the head of all other entities if we create a flow chart of the system. The people working in the administration are the staff persons that’s why they will be identified by the staff id and not the employee is.

This entity has the following attributes:


This is the primary key for this particular entity. It will be assigned to each staff person and will be used to uniquely identify the individual working person.


The name is required for the verification of the person as the documents contained the name of the person. Departmental wise it easy to remember the name instead of their id for the communication.


For the immediate communication with the staff persons, there is contact phone number it will vary from person to person or department.


It is helpful for informal communication and making an announcement to every other staff person. It will also be helpful for another employee to communicate with a staff person with their email address.


This will give the idea about that the staff person is handling which department. The department-id will comprise of their job details like designation and department name. The administration will hire the employees and decides their salary and make entry according to that so the system can generate the amount every time it requires to that’s they are in a direct relationship.


  • The employee entity contains all the information about the employees working in the company. These details will help in managing the employee’s interest in the assignment of the department.
  • This will enable them to manage the employee data easily. Searching the information will just a few clicks.
  • It will have all the necessary attributes required for the employer.

The employee entity will have following attributes:


This will be the primary key for this entity. It will be unique for every employee hired by the administration. It will help in identifying the particular employee easily. This gets useful when two employees have similar name-like conditions.


This is required for verification purposes. Usually, on government-issued id cards, it has a name as identification. Also, it is easy to remember a name than the id.


The department will have a different id for the manager, worker, and other designation so we can find the job profile of the employee. It will also help in getting the other department information where and what the employee’s working is.


It is good to have employee’s contact number to have immediate communication regarding the work.


It is required when a bank needs to make an announcement. So, they will select the employee’s email and simply broadcast the announcement. It can also be helpful in verifying the employee’s identity online.


In any case, the employee’s address needed for example sending an email or documents at the employee’s residence. It is also required for verification if the employee’s given personal information is right or wrong. The employees will be hired by the administration and further, it has a relationship with the department entity because all the employees will be working in a particular department.


This entity will help in keeping the track of the job profile of the employee. The departments are the inner fragments of the company. Each Employee profile will be assigned to one department in which will have the details about their job.

The department entity will have the following attributes:


This is the primary key for the table it will help identify each job profile uniquely in with the department. This will be unique for every designation of departments.


It will contain the name of the department to avoid confusion clear and avoid the confusion from the id. Usually, the department names are unique themselves but creating them is a good option that because it uses less storage space than a name.


It will take the employee id as a value which will define that a particular person/employee is the head of that department. So, the HOD will be responsible for all the work done in his/her department.


This attribute defines if the person works in administration or as an employee of the company.


To know about the designation of the employee like if the employee holds manager or HOD or any other designation. The department will be assigned to the employee as well as the administration. The administration will manage the department and employees.


This is an important entity because the purpose of this system is to calculate the salary. This will have all the information of the employee to calculate the employee salary and generate the payment slip.


It will take the employee id as value. So later it can be used to identify whose salary it has stored.


Every employee will have some deduction in salary based on the different factor’s forex: attendance can be one of them. It will check the deductions based on the values of a particular id before calculation.


It will hold the basic salary of the employee. Before any deduction or additional incentive or taxes etc.

HRA (House Rent Allowance):

If you are getting House Rent Allowance then it will add that in the salary and what is the base of calculating HRA etc.

Medical Allowance:

If the employee is eligible for the medical allowance, then it will add the amount which is decided by the administration.


If there is any bonus by the administration then there will be the amount which will be added to the salary.

DA (Dearness Allowance):

If you are eligible for Dearness Allowance then this attribute will that amount.

TA (Travelling Allowance):

If you have traveled for the company work and applied for the refund then you will get the amount in this attribute and will be added to the final salary. This entity has a direct relationship with the administration as the salary is actually calculated by the administration and deduction will be based on the factors which are present in the deduction entity.


This will contain the factors on which will be used to deduct the amount from the final salary of the employee.


This will be the primary key for this entity so that the information can be uniquely identified for all the employees and also in searching and sorting.


It will have the value that in the total working day how many days the employee has come to work and on the based on a daily basis the salary can be calculated.


If the employee has taken any loan from the company if yes then the installment will be also be deducted from the salary of the employee.


The taxes for which an employee is eligible for it will be automatically deducted from the salary that could be different from government and personal industry. The deduction entity has a direct relationship with the salary table so it can make a decision while calculating the salary. The payroll management will surely decrease the workload of the employee and increase the speed at the same time.

This system will be more reliable than the manual system.

Payroll Management System Project Documentation

User Interface of Payroll Management System:

This is one of the main tasks of the developer to design such an interface that user can use it easily in one word it should be user friendly and for this, you should have a better understanding of the audience which going to use this application, initially, we need to find the target audience that what kind of application do they need.

It can also involve some research in form of feedback from the involved field. After getting all this information we should start to design the application.

Contact of Payroll Management System:

This section will consist of the contact option if there is a need for contact to the department head or administration or the IT department for the device-related problem this feature will surely help in such cases.

The Help of Payroll Management System:

This section will help the employee or the end-user to understand the system like what is the use of different sections on the website. This is similar to the mini-tutorials if the person has any query regarding how things will work or what needed to enter where can take the help of this feature.