Sample Proposal: Computerized Payroll System for ABC Store

To: Engr. Ricardo Lim
From: Maya Grace Hipolito
Date: January 12, 2005
Subject: A proposal to purchase a Computerized Payroll System (CPS)


I am writing to propose a solution to a problem in my accounting department.  The problem is that the manual payroll system is experiencing slow processing of data and also very costly since it takes up lot of time, resources and money. Our accounting personnel will need to have an overtime pay since they extend time to compute the payroll of our employees.  Ordering a computerized payroll system will minimize errors, time, money and resources.

Problem with the Current Payroll system

As of now, we have 2,000 employees so the payroll system is really a big task to our accounting department.  Using our current payroll system, there is a delayed salary of employees due to tedious task of computing wages and payroll tax computation as well as voluntary deduction. In addition, there is a high room for errors since more manual computations the more errors prone to make.

Solution to the Problem

A purchase of a computerized payroll system will make payroll processing faster and efficient. I propose to order computerized payroll software from ABC Software House.  XYZ Enterprise and Digi Innovative Corporation are already using a Computerized Payroll System. It is about time to make a change since our company becomes bigger and bigger.

The following are some benefits of Computerized Payroll System

  • Accurate and faster processing of data since there is no manual computation of payroll. Calculation is correct as long as the inputted data is correct.
  •   Convenience to use. It records and tracks everything wherever you are in just one click.
  •  Payroll deduction processing makes easy.  There is a withholding tax tables, SSS table, Philhealth table embedded in the system and figures employee salaries.
  •   Process 13th month pay with tax adjustment upon resignation or during year end.
  •   Automatic deduction for loan since it has the loan status monitoring
  •   Provides report for payroll reports automatically including pay slip, Payroll Account Summary, Monthly contribution (SSS, Philhealth, Pag-ibig, etc.) and other customized reports.


The cost of a Computerized Payroll System is Php 50,000.  Free demo and tutorial for our accounting staff as well with three (3) months training using the Computerized Payroll System. They will help during the period of transition. It is user-friendly and it is easy to install.

We already have a hardware requirements for Computerized Payroll System (CPS), we only need is a software that will be installed in our computer and laptops.


In conclusion, I think it is a great benefit to our company for you to approve this proposal and order a Computerized Payroll System.

Purchasing payroll system will provide business management solutions through the financial record of employees’ salaries, bonuses, net pay and deductions that it can generate.

Computerized payroll system will eliminate the manual payroll processing which requires our accountant to perform all payroll tasks manually.  Using a manual payroll processing is a time consuming and also there have a chance for errors.

I really hope that you will think of approving this proposal for our accounting department.  Our employee will get satisfaction as well our accounting staff that a manual process cannot provide.