Time tracking software records how employees spend their working time — by project, client, task, or activity. It helps businesses understand productivity, bill clients accurately, process payroll for hourly workers, and stay compliant with labor laws.
Types of Time Tracking Software
Project-Based Time Tracking
Designed for agencies, consultants, and professional services. Employees log time against specific projects and tasks. Used for client billing, project profitability analysis, and capacity planning. Examples: Harvest, Toggl, Clockify, Everhour.
Payroll Time Tracking
Designed for hourly workers where time data feeds directly into payroll. Includes clock-in/clock-out functionality, often with physical time clocks or mobile apps with GPS verification. Examples: QuickBooks Time (TSheets), Homebase, When I Work.
Employee Monitoring / Productivity Tracking
Tracks computer activity, app usage, and website visits in addition to hours worked. Often used for remote teams. More controversial for employee trust but valuable for certain industries. Examples: Hubstaff, Time Doctor, ActivTrak.
HRIS-Integrated Time Tracking
Built into HR platforms. Time and attendance data syncs directly to payroll without manual export/import. Examples: Rippling, Gusto, BambooHR (time tracking add-on).
Key Time Tracking Features
| Feature | Use Case |
|---|---|
| One-click timer | Start/stop tracking with minimal friction |
| Project/task assignment | Categorize time for reporting and billing |
| Mobile app + GPS | Field workers and remote employees |
| Payroll integration | Sync hours to payroll automatically |
| Overtime alerts | Compliance with labor laws (FLSA) |
| Timesheet approval | Manager review before payroll processing |
| Invoicing | Bill clients based on tracked hours |
| Reporting | Project profitability, team utilization, productivity |
Time Tracking by Industry
Agencies and Professional Services
Track time by client and project to ensure accurate billing and understand project profitability. Harvest, Toggl Track, and Everhour are popular in agency environments.
Construction and Field Services
GPS-verified clock-in for field workers, job site tracking, and payroll compliance for union and prevailing wage jobs. Busybusy, ClockShark, and ExakTime serve construction teams.
Healthcare
Shift scheduling, overtime compliance, and patient care time documentation. Healthcare-specific platforms integrate with EMR/EHR systems for billing.
Retail and Restaurants
Shift-based scheduling, clock-in/out, break tracking, and tip reporting. Homebase and When I Work are popular for hourly, shift-based businesses.
Time Tracking Software Pricing
- Free options: Clockify (free for unlimited users), Toggl Track (free up to 5 users)
- SMB tools: $5–15/user/month — Harvest, Toggl Track, Hubstaff
- Enterprise: $15–30+/user/month with advanced features, integrations, and reporting
- HRIS add-ons: Typically $5–10/user/month as add-on to HR platform
See our Best Time Tracking Software Guide 2026 for detailed reviews of top platforms.
Frequently Asked Questions
Do salaried employees need time tracking?
Legally, most salaried exempt employees don’t need time tracked. However, many companies track salaried employee time for project management, billing, and productivity purposes. Salaried non-exempt employees (rare but exist) do legally require time tracking.
Is employee time tracking legal?
Yes, tracking hours worked is legal and often required for hourly employees under the Fair Labor Standards Act (FLSA). Employee monitoring (keystroke logging, screenshots) is legal in most US states with proper disclosure, but specific rules vary by state and country.
What’s the best free time tracking app?
Clockify is the most feature-complete free time tracking app — unlimited users, unlimited projects, unlimited time tracking, and solid reporting on the free plan. Toggl Track is free for up to 5 users with excellent UX.
