A payroll management system for small-scale catering businesses : case study of Makindye Division, Kampala

Abstract

This project aimed at developing a comprehensive Payroll Management System tailored to meet the unique needs of small-scale catering businesses in Makindye Division, Kampala, most of which operate under the MSME category. These businesses face persistent challenges in managing payroll manually, including paper-based attendance tracking, spreadsheet salary calculations, and undocumented cash disbursements. The system project seeks to address these inefficiencies while promoting digital transformation and operational effectiveness. It also aligns with the broader objectives of Uganda’s NDP III, which emphasizes MSME development and technology adoption as key drivers of inclusive economic growth. Following a detailed fact-finding exercise on the existing manual payroll practices, a set of system requirements was generated. These include automated salary calculations, staff attendance tracking, overtime computation, pay slip generation, mobile money integration, and compliance features for statutory deductions such as PAYE and NSSF. The system was developed using the XAMPP platform, leveraging PHP and MySQL to ensure affordability, scalability, and ease of use. The outputs demonstrated significant improvements in payroll accuracy, reduction in processing time, enhanced reporting capabilities, and increased user satisfaction among catering business owners. The research strongly recommends that small-scale catering businesses adopt this Payroll Management System to streamline their operations and reduce administrative burdens. Furthermore, it advocates for continued government support in facilitating MSME access to affordable digital tools, particularly those tailored to sector-specific needs. Successful implementation of this system will serve as a model for digital innovation in Uganda’s informal service sector and contribute to the sustainable growth of MSMEs nationwide.