PunchOutPayroll payroll and time clock app logo 14-day trial

Guides

Employee timekeeping software: what to look for

Timekeeping software should make accurate hours the easy path for your crew and give you hours you can approve with confidence. Here’s a checklist to use before you choose one.

Start with the records the law requires

Federal law requires employers to keep certain records for non-exempt employees, including hours worked each workday and the total for each workweek, the time and day the workweek begins, and pay details. Payroll records must generally be kept for at least three years, and time cards for at least two. Good timekeeping software keeps these records for you and lets you pull them up later. Some states require more, so check your state’s rules too.

Clock-in options your crew will actually use

  • Phone clock-in for people who start at a job site or move between locations.
  • A shared tablet at the door for shift staff who start in one place.
  • Personal logins, so each punch belongs to one person and buddy punching gets harder.
  • Location checks, such as geofenced clock-in at the job address. Tell your crew how location is used.

Overtime, breaks and the workweek

  • Overtime figured by workweek, the way federal law counts it, with room for state daily rules where they apply. See how overtime is calculated.
  • Meal and rest breaks recorded, so you can see a missed or short break before payroll. See our guide to employee break laws.
  • Rounding, if you use it, set so it evens out over time and doesn’t always favor the employer.

Corrections with a clear history

Missed punches happen on every crew. Look for a way for employees to request a fix from their phone, for a manager to approve it, and for the system to keep the original punch along with who changed it, when and why. Our guide to fixing missed punches covers the process.

Approvals, time off and payroll export

  • One screen for each person’s week, with hours, overtime and breaks.
  • PTO and sick time that accrue from hours worked, with balances employees can see.
  • Time-off requests and approvals in the same place as hours.
  • A clean export of approved hours for payroll, and a clear line on what the software does and doesn’t do.

Questions to ask before you choose

  1. Can my crew clock in on their first day without training?
  2. Can I see who’s on the clock right now?
  3. Does it keep the original punch when someone fixes a time card?
  4. Can I set it up for my kind of business, with my break rules?
  5. How do approved hours get to payroll, and who runs payroll?
  6. Can I try it with my real crew before I decide?

How PunchOutPayroll helps

PunchOutPayroll was built around this checklist for owners of hourly crews. A setup checklist shows what’s left, crew join by invite link or joining code and clock in from their own phones, and location is checked at each punch with their consent. You see who’s on the clock live, review missed-punch fixes and time off from one list, run a readiness check before payroll and export payroll-ready hours. See the employee time clock app, all features, or start a 14-day trial.

Sources and further reading

General information, not legal advice. Labor rules change and vary by state and city. Check your state labor department or talk with an employment attorney about your situation.

Frequently asked questions

What is employee timekeeping software?

It’s software that records when employees start and stop work, totals hours by day and workweek, and helps you review and approve those hours for payroll.

What records does timekeeping software need to keep?

For non-exempt employees, federal law requires records such as hours worked each workday and each workweek and pay details. Payroll records are generally kept at least three years and time cards at least two.

Should timekeeping software round punches?

Federal rules allow rounding to the nearest five minutes, tenth or quarter hour only if it evens out over time. Some states limit rounding, and many owners skip it.

How do I choose timekeeping software for a small business?

Check that it keeps the required records, is easy for your crew to clock in, tracks overtime and breaks, keeps a history of corrections and exports approved hours for payroll. Then test it with your real crew.

Don’t settle for software your crew hates.

Set up your company, invite your crew and see who’s on the clock. Start with a 14-day trial.