Time Tracking Software FAQ: 20 Questions Answered

Time tracking software records when employees start and stop work, tracks hours worked, and integrates with payroll systems. It replaces paper timesheets and punch clocks.

Core features:

• Clock in/out: Mobile app, web browser, or physical time clock
• Timesheets: Automatic generation of hours worked per pay period
• Overtime calculation: Alerts and auto-calculation of OT hours
• GPS tracking: Verify employee location when clocking in (for field workers)
• Project time: Allocate hours to specific clients, projects, or tasks
• Payroll integration: Send hours directly to payroll system
• Reporting: Labor costs, attendance, productivity metrics

Popular platforms: Toggl Track, Clockify, TSheets (QuickBooks Time), Harvest, Deputy, Hubstaff

Time tracking software typically costs $4-12 per user per month, with pricing varying based on features:

Budget options:

• Clockify: Free for unlimited users (basic features), $3.99/user/month for premium
• Toggl Track: Free for 1-5 users, $9/user/month for team features
• Clockshark: $7/user/month (construction-focused)

Mid-range options:

• TSheets (QuickBooks Time): $8+/user/month (GPS, job costing)
• Harvest: $10.80/user/month (time + invoicing)
• Deputy: $4.50/user/month (scheduling + time tracking)

Advanced options:

• Hubstaff: $7-20/user/month (screenshots, activity monitoring)
• Time Doctor: $7-20/user/month (detailed productivity tracking)

Add-on costs: Hardware time clocks ($100-500), premium support, additional storage

You probably need time tracking if:

• You have hourly employees (legally required to track hours)
• You're manually entering timesheets into payroll (time-consuming and error-prone)
• You need to track billable hours for clients
• You have field workers or remote employees (need location verification)
• You're dealing with time theft or buddy punching
• You need project-level time allocation (agencies, consultants)
• You want to understand labor costs by department/project

You can probably skip it if:

• All employees are salaried with no overtime
• You have fewer than 5 employees and manual tracking works fine
• Your payroll provider handles timekeeping (some do)

Legal note: Federal law (FLSA) requires accurate records of hours worked for non-exempt employees. Time tracking software helps you stay compliant.

They overlap but have different goals:

Time Tracking:

• Goal: Record hours worked for payroll and billing
• Data collected: Clock in/out times, project hours, breaks
• Use case: Payroll accuracy, billing clients, overtime compliance
• Examples: Toggl Track, Clockify, TSheets

Employee Monitoring:

• Goal: Measure productivity and activity during work hours
• Data collected: Screenshots, app/website usage, keystrokes, mouse movement
• Use case: Remote team oversight, productivity analysis, security
• Examples: Hubstaff, Time Doctor, Teramind

Many platforms offer both (Hubstaff, Time Doctor) with monitoring as an optional feature. Be transparent with employees—surprise monitoring damages trust.

GPS time tracking verifies employee location when they clock in/out using their mobile device:

How it works:

• Employee opens time tracking app on phone
• Taps "Clock In" button
• App captures GPS coordinates and timestamp
• Manager sees location on map dashboard
• Can set geofences (alerts if clocking in outside work zone)

Best for:

• Field service workers (HVAC, plumbing, landscaping)
• Construction crews
• Delivery drivers
• Healthcare workers (home care, nursing)

Privacy considerations: Most platforms only track location during work hours and when app is actively used. Continuous GPS tracking (tracking all day) is generally discouraged and may be illegal without consent.

Platforms with GPS: TSheets, Clockshark, Hubstaff, Deputy

Screenshot monitoring captures images of employee computer screens at random or fixed intervals (e.g., 3 screenshots per hour).

How it works:

• Time tracking app runs in background on employee computer
• Takes screenshots automatically (with or without employee notification)
• Manager can review screenshots in dashboard
• Some platforms blur out sensitive content (passwords, personal sites)

Use cases:

• Remote workers: Verify work is being done (trust but verify)
• Contractors/agencies: Provide proof of work to clients
• Security: Detect data leaks or policy violations

Should you use it? Only if you have a legitimate business need (e.g., client requirements, security concerns). Screenshots can feel invasive and damage employee trust. Always disclose screenshot monitoring in writing.

Platforms with screenshots: Hubstaff, Time Doctor, Teramind

Buddy punching is when one employee clocks in for another. Time tracking software prevents this with identity verification:

Prevention methods:

• Biometric verification: Fingerprint or facial recognition (time clock hardware)
• Photo verification: Selfie required when clocking in via mobile app
• GPS geofencing: Must be at work location to clock in
• IP address restriction: Only allow clock-in from office network
• PIN codes: Unique 4-6 digit code per employee
• Badge/RFID scanning: Physical card or fob required

Most effective combo: GPS geofencing + photo verification (prevents remote buddy punching)

Platforms with anti-buddy-punching: TSheets (facial recognition), Deputy (photo + GPS), Clockshark (GPS + selfie)

Yes—most platforms allow employee timesheet edits (with manager approval):

Common scenarios:

• Employee forgot to clock out at end of day
• Missed break period
• Accidentally clocked into wrong project/task
• System was offline (internet outage)

How it works:

• Employee submits edit request with reason
• Manager receives notification
• Manager approves or denies edit
• Audit trail shows original time, edited time, who made change, and when

Settings to configure:

• Allow employees to edit their own times (yes/no)
• Require manager approval for all edits (recommended)
• Lock timesheets after submission or payroll processing

Best practice: Allow edits but require approval—this balances flexibility with accountability.

Time tracking platforms provide reports for payroll, project management, and labor cost analysis:

Payroll & attendance:

• Timesheet summary: Total hours per employee per pay period
• Overtime report: Who worked OT and how much
• Attendance: Late arrivals, early departures, absences
• PTO usage: Vacation, sick time taken

Project & client billing:

• Time by project: Hours allocated to each client or project
• Billable vs. non-billable: Track which hours to invoice
• Budget tracking: Compare actual vs. estimated project hours
• Team utilization: % of time spent on billable work

Labor cost analysis:

• Labor cost by department: Total payroll expense per team
• Job costing: True cost of completing each project
• Productivity metrics: Output per labor hour

Best for reporting: TSheets (customizable), Harvest (beautiful visuals), Toggl Track (simple exports)

Yes, GPS tracking is legal in most states when employees are on the clock and using company devices or vehicles.

Legal requirements:

• Disclosure: Inform employees in writing that GPS tracking is used
• Business purpose: Tracking must be for legitimate work reasons (not personal surveillance)
• Work hours only: Limit tracking to scheduled work time (not 24/7)
• Company property: Tracking company-owned phones/vehicles is safest

State-specific rules:

• California: Strict privacy laws; requires explicit consent and business necessity
• Connecticut: Must notify employees of monitoring policies
• Delaware: Written notice required before any monitoring

Best practices:

• Add GPS tracking disclosure to employee handbook
• Get signed acknowledgment from employees
• Only track during scheduled shifts
• Use data solely for work purposes (not personal surveillance)

When in doubt, consult an employment lawyer.

Yes—most time tracking platforms automatically calculate overtime based on federal (FLSA) and state labor laws.

How it works:

• System tracks when employee exceeds 40 hours in a workweek
• Applies overtime multiplier (typically 1.5x regular rate)
• Flags overtime hours on timesheet for manager review
• Sends alerts when approaching OT threshold

Advanced overtime rules supported:

• California daily OT: 1.5x after 8 hours/day, 2x after 12 hours/day
• 7th consecutive day: 1.5x for first 8 hours, 2x after that
• State-specific rules: Alaska (8hr daily OT), Nevada (8hr daily OT)
• Different OT rates: Custom multipliers by employee or state

Platforms with strong OT features: TSheets (handles all state rules), Deputy (alerts + compliance), Clockshark (construction-specific rules)

Time tracking software helps you comply with federal and state labor laws:

FLSA compliance (Fair Labor Standards Act):

• Record keeping: Required to keep accurate records of hours worked for 3 years
• Overtime tracking: Must pay 1.5x for hours over 40/week (non-exempt employees)
• Minimum wage: Track that hourly wages meet federal/state minimums
• Break tracking: Unpaid breaks excluded from hours worked

State-specific rules:

• Meal break requirements: California requires 30-min break for 5+ hour shifts
• Rest break laws: Track 10-min breaks for every 4 hours worked
• Predictive scheduling: Some cities require advance notice of schedules

Audit protection:

• Time tracking data serves as evidence in DOL audits or wage disputes
• Automated systems reduce "he said, she said" disputes
• Digital records easier to retrieve than paper timesheets

Federal law (FLSA) requires keeping payroll records for at least 3 years. Some states require longer.

Federal requirements (FLSA):

• 3 years: Payroll records, timecards, wage rate tables
• 2 years: Records used to compute wages (time studies, work schedules)

State extensions:

• California: 4 years for wage records
• New York: 6 years for payroll records

Best practice: Keep timesheet records for at least 4 years to cover statute of limitations for most wage claims. Most time tracking platforms store data indefinitely (or as long as you're a customer).

Export regularly: Backup timesheet data quarterly to external storage in case you switch platforms or vendor goes out of business.

Billable hours tracking lets you allocate employee time to specific clients or projects for accurate invoicing:

How it works:

• Employee starts timer and selects client/project
• Adds task description (optional)
• Timer runs while working; stops when done
• Hours tagged as "billable" or "non-billable"
• At end of billing period, generate invoice from tracked hours

Billable vs. non-billable:

• Billable: Client work, meetings, deliverables (invoice these)
• Non-billable: Internal meetings, admin, training, proposals

Benefits:

• Accurate client invoicing (no more guessing)
• Identify unprofitable projects (too many non-billable hours)
• Track team utilization (% of time spent on billable work)
• Provide detailed time reports to clients

Best for billable hours: Harvest (time + invoicing), Toggl Track (simple tracking), TSheets (job costing)

Yes—most time tracking platforms integrate with payroll systems to automatically import hours worked.

Popular integrations:

• TSheets (QuickBooks Time): Native integration with QuickBooks Payroll
• Gusto: Integrates with Toggl Track, Clockify, Harvest
• ADP: Integrates with TSheets, Clockify, Deputy
• Paychex: Integrates with TSheets, Deputy
• Rippling: Native time tracking included

How it works:

• Employees track time in time tracking app
• Manager approves timesheets
• Hours sync to payroll system automatically (daily or weekly)
• Payroll processes without manual timesheet entry

Benefits:

• Eliminates manual data entry and errors
• Saves 2-5 hours per pay period (for 20+ employees)
• Real-time labor cost visibility

Yes—many time tracking apps integrate with project management platforms:

Popular integrations:

• Asana: Integrates with Toggl Track, Harvest, Clockify
• Trello: Integrates with Toggl Track, Harvest, Clockify
• Monday.com: Integrates with Toggl Track, Harvest
• Jira: Integrates with Toggl Track, Harvest, Tempo (native)
• ClickUp: Native time tracking included

How it works:

• Start timer directly from project management task
• Time automatically tagged to correct project/client
• View time spent per task or project in both apps

Benefits:

• See if projects are on budget (estimated vs. actual hours)
• Identify bottlenecks (tasks taking longer than expected)
• Accurate project profitability analysis

Yes—time tracking platforms integrate with accounting software for invoicing and expense tracking:

Popular integrations:

• QuickBooks Online: TSheets (native), Harvest, Toggl Track
• Xero: Harvest, Toggl Track, Deputy
• FreshBooks: TSheets, Harvest
• NetSuite: TSheets, custom integrations

What syncs:

• Client invoices: Generate invoices from tracked billable hours
• Expense tracking: Link timesheets to project expenses
• Payroll journal entries: Send labor costs to general ledger
• Job costing: Track profitability by project

Best for accounting integration: Harvest (native invoicing + accounting sync), TSheets (QuickBooks ecosystem)

Yes—most mobile time tracking apps support offline mode for field workers without internet access:

How it works:

• Employee clocks in using mobile app (no internet required)
• App stores time entries locally on device
• When connection restored, data syncs automatically to cloud
• Manager sees time entries appear once synced

Important for:

• Remote job sites (construction, utilities)
• Rural areas with spotty cell coverage
• Underground work (basements, tunnels)

Platforms with offline mode: TSheets, Clockshark, Deputy, Hubstaff

Choose based on your industry, workforce type, and must-have features:

By workforce type:

• Office workers: Toggl Track, Clockify (simple desktop tracking)
• Field workers: TSheets, Clockshark (GPS + mobile-first)
• Remote teams: Hubstaff, Time Doctor (activity monitoring)
• Agencies/consultants: Harvest (billable hours + invoicing)

By industry:

• Construction: Clockshark (job costing, equipment tracking)
• Healthcare: TSheets (compliance, shift tracking)
• Retail/hospitality: Deputy (scheduling + time tracking)
• Professional services: Harvest, Toggl Track (billable hours)

Key questions to ask:

• Do I need GPS tracking?
• Do I need to track billable hours for clients?
• What payroll system do I use? (check integration)
• Do I need offline mode?
• What's my budget per employee?

Start with free trial: Most platforms offer 14-30 day free trials—test with real employees before committing.