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The need to develop customized application software is quite high now-a-days with the ever increasing automation process within many companies. In this paper, we analyze, design, implement and test a web-based payroll software for an external company with the Setup module, PI (personnel information) module, OT (over time) module, Payroll module and Report module. These modules and their implementation are discussed in detail. The software development life cycle followed is discussed to show how different phases are evolved and how they interact with each other to form the software that the client needs.