Online Time Clocks and Why Use One
An online time clock is a web-based employee time clock that tracks hours for payroll.
They are a combination of an employee time clock, time and attendance software, and other features such as payroll and HR, all in one single application.
They are also becoming very popular due to demand for workforce management, automation, and cloud-based access. As an example, The global time clock software market was estimated to be worth USD 3.7 billion in 2024 and is projected to grow to USD 4.7 billion by 2029, at a CAGR of 5.2%. (Source: Insight Explorer).
Not all online time clock providers are created equal, as each has their own way of doing things, so I'll discus each topic in general terms.
In this guide I'll go over:
- The benefits of using an online time clock
- Features of online time clocks
- How to set up an online time clock
- Managing employee time and attendance
- Using online time clocks for payroll
- Using online time clocks with office employees
- Using online time clocks with remote employees
- Choosing the right online time clock provider
The benefits of using an online time clock
Using an online time clock offers several benefits. One of the biggest is increased accuracy and efficiency over manual methods. Employees easily clock in and out, and administrators easily manage payroll hours simply by using web browsers.
No more worrying about paper time cards, manually entering times, calculating overtime, or hours reporting, it is all done for you with a click of a button.
Another benefit is convenience. With an online time clock employees clock from any device you wish including desktop computers, tablets, phones, and wall-mounted time clocks. Since the software is online, time data can be accessed from anywhere, not just the office.
Features of online time clocks
Outside the convenience of web access, online time clocks help to streamline workforce management. Overall features can include time tracking, employee management, HR management, and payroll.
More specific features can include time off accruals, time off requests, job tracking, scheduling, GPS tracking, shift management rules such as lunch deductions and rounding, time exceptions, payroll integrations, integration of biometric time clocks, and more.
In general it depends on the provider, but most providers at least offer time tracking with overtime calculations and reporting.
How to set up an online time clock
Setting up a new online time clock is simple and only takes a few minutes. First, you'll typically need to sign up for an account on the vendor's website or app. This usually involves providing basic information such as business name, and contact details.
Don't worry if you are not tech-savvy, most online time clocks are designed to be user-friendly for anyone not familiar with digital systems.
Once signed up, you'll typically need to set up your account by entering all your employee names, assigning departments, set overtime rules, set a pay period, payroll integrations, and sending invitations for everyone to start clocking in.
Depending on your organization, you may also want to set up other administrator or supervisor accounts to help manage your team.
Last, don't hesitate to reach out to your provider's support staff with any questions you may have. They are usually very helpful and happy to guide you through the process.
Managing employee time and attendance
Managing time and attendance is simple using a web browser. To get started, employees typically log in to the system using their credentials to clock in and out during each shift. Make sure to set up your business rules such as shifts, schedules, and time off policies. Some providers provide a way for employees to request time off in their account.
Overtime is typically handled automatically by the rules you set such as weekly overtime or daily overtime.
During the pay period, be sure to monitor your employee time cards at least once a week. Give yourself enough time before the pay period ends to resolve any discrepancies such as missed punches, employee requests, or time errors.
Once each timecard is completed for a pay period, don't forget to review and approve them, as this helps ensure payroll is accurate, and helps maintain permanent records. When ready, pass your timecard records to your payroll provider.
To get the most of your online time clock, be sure to check with your team regularly to ensure the system is working correctly, and take advantage of all the available features your provider offers. The idea is to keep the process easy and efficient.
Using online time clocks for payroll
Using an online time clock makes payroll more accurate and efficient. First make sure to enter the pay rates for each employee and assign them as either hourly, salary, or contractor. Although most payroll systems use hours to calculate hour compensation, several vendors calculate gross pay too.
Depending on your payroll provider and online time clock provider, data can often be transferred without rekeying the hours. For example, it is possible to export hours from your online time clock in a format that your payroll provider understands. Some providers offer integration with your payroll provider by sending all hours by clicking a button.
The most convenient and efficient way is to use an online time clock provider that offers payroll too. This way, hours are not transferred at all, but used internally to run payroll as an all-in-one solution. All timesheets, pay stubs, and tax documents are available with one login.
Remember to regularly review your settings and calculations to ensure everything is accurate, up-to-date, and stays in compliance.
Using online time clocks with office employees
Since most offices have desktop, laptop, or tablet computers, online time clocks are a perfect fit. Employees log in using either a username and password, or by entering their PIN. Typically, employees clock in and out by clicking or tapping a button.
Depending on the provider, employees might also see their timesheets, shift schedules, available PTO hours, and may have a way to request time off. If using payroll, employees will be able to see their pay stubs, and W-2s.
When using web browsers on computers, security is handled by limiting employees to an IP address
Since most systems are user friendly, employees will find them easy to use.
Using online time clocks with remote employees
Online time clocks can be accessed from anywhere, making them a convenient choice for remote employees. It does not matter if they work from home, a different workplace location, or on the road.
Remote employees log in from their phones or laptops as long as they have Internet access. Once logged in, they have access to all the same features described above.
Using phones, security is handled using GPS tracking which can record the geolocation of the employee as the clock in and out. This provides the employer proof that the employee was at the workplace location.
Some providers offer simple browser access that does not require a download, while others offer time clock apps employees need to install and maintain.
Choosing the right online time clock provider
Choosing the right solution can seem overwhelming, but don't worry, consider the following ideas.
If you have a small team under 10 employees, a basic online time clock might be perfect. On the other hand, if you have a larger team, you may want to opt for a more advanced online time clock with employee self-service, automatic pay calculations, and integrations with payroll and HR.
Key factors include security and compliance. Consider using an experienced online time clock provider who understands the laws, and keeps your time records safe and secure.
Don't be afraid to ask questions, try a free trial, or ask for a free demo, as most providers are happy to help. That way you can make sure it fits your business needs and workflows like a charm.
Conclusion
To sum it up, online time clocks offer increased accuracy, efficiency, and convenience over all other types of employee time clocks. Open a browser, go to your provider's website, and log in from anywhere.
We encourage any small business to consider the option over alternatives. It's not a question of monthly fees versus no monthly fees, it's a question whether your business could benefit from the advantages of being online or not.
Webtimeclock has been online since 2003, one of the first online time clocks, maybe sign up for a free trial to see how modern we are.