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thesis
CHAPTER I
The problem and its Background

The term payroll encompasses every employee of a company who receives a regular wage or other compensation. Some employees may be paid a steady salary while others are paid for hours worked or the number of items produced. All of these different payment methods are calculated by a payroll specialist and the appropriate paychecks are issued. Companies often use objective measuring tools such as timecards or timesheets completed by supervisors to determine the total amount of payroll due each pay period.
In a company, payroll is the sum of all financial records of salaries, wages, bonuses and deductions. The current Federal payroll service environment evolved over many years of incremental changes that have been implemented in different ways across the Government. The influence of Agency-unique interpretation of legislation, regulation, and HR policies have all contributed to a complex set of requirements that, when taken together, create an obstacle to the modernization of payroll systems and processes.
THEORETICAL FRAMEWORK
Information System is processing of information received and transmitted to produce an efficient and effective process. One of the most typical information systems is the Transaction Processing System. Transaction Processing System collects, stores, modifies, and retrieves the transactions of a certain organization.
The process of retrieving, modifying and transmitting data to be stored using information system is referred to as transaction. Transactions occur is known to be a part of records. All of these records were originally kept in paper. When a certain organization uses a certain transaction processing system, retrieving and transmitting of information will be available at any time needed. The number and volume of transactions can be calculated for a given time period. It eliminates time constraints and efforts in terms of having several order transactions on electronic commerce

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