What is time tracking software?

Time tracking software automates the recording and management of employee work hours through various methods including biometric time clocks, web-based punch systems, mobile apps, and GPS tracking. It manages schedules, tracks regular and overtime hours, handles PTO requests, ensures labor law compliance, and integrates with payroll systems to automate wage calculations. The software provides real-time visibility into labor costs and helps prevent time theft and buddy punching.

How much does time tracking software cost?

Time tracking solutions typically cost $2-8 per employee per month. Basic web and mobile tracking starts at $2-4 PEPM. Solutions with scheduling and labor compliance features range from $4-6 PEPM. Enterprise solutions with biometric integration and advanced analytics cost $6-8+ PEPM. Hardware costs include time clocks ($300-800 per device), biometric scanners ($500-1,500), and badge readers ($200-500). Implementation fees range from $500-5,000 based on number of locations and complexity.

What features should time tracking software include?

Essential features include multiple clock-in methods (web, mobile, biometric), real-time attendance tracking, overtime calculation and alerts, PTO request and approval workflows, schedule management, geofencing for mobile workers, labor law compliance tools, break tracking, timesheet approval workflows, exception reporting, department and job costing, manager dashboards, and payroll integration. Advanced features include predictive scheduling, labor forecasting, and AI-powered schedule optimization.

How does time tracking software prevent time theft?

Time tracking systems prevent time theft through biometric verification (fingerprint, facial recognition) that eliminates buddy punching, GPS tracking for mobile workers, geofencing that restricts clock-ins to approved locations, photo capture at punch time, real-time alerts for early arrivals or late departures, automatic rounding rules to prevent time padding, and detailed audit trails of all time entries and edits. Organizations typically reduce time theft by 2-5% of payroll, saving thousands to millions annually.

Can time tracking software help with labor law compliance?

Time tracking platforms ensure compliance through automatic break reminders and enforcement, overtime calculation based on federal and state rules, meal period tracking and violations alerts, minor work hour restrictions, shift differential tracking, maximum consecutive days worked alerts, and detailed recordkeeping meeting DOL requirements. Systems maintain records for 3+ years for audit purposes, generate compliance reports, and update automatically for regulation changes. This helps avoid costly penalties ($10,000+ per violation for serious infractions).

How does time tracking integrate with payroll?

Time tracking systems integrate with payroll through automated data export in required formats, real-time synchronization of approved timesheets, department and cost center allocation, automatic overtime and premium pay calculations, PTO balance updates, and direct API connections with major payroll providers. Integration eliminates manual data entry, reduces payroll processing time by 50-70%, virtually eliminates transcription errors, enables faster payroll cycles, and provides better labor cost visibility. Most integrations are bi-directional, updating time tracking systems with payroll changes.

What is the ROI of implementing time tracking software?

Organizations achieve ROI within 3-6 months through reduced time theft (2-5% savings on labor costs), eliminated manual timesheet processing (4-8 hours per pay period saved), improved payroll accuracy (90%+ reduction in errors and corrections), reduced overtime costs through better visibility (10-20% reduction), faster payroll processing, and avoided compliance penalties. A 100-employee company typically saves $30,000-60,000 annually. Additional benefits include improved scheduling efficiency, better labor cost control, and enhanced employee accountability.