Time-tracking software records employee hours, schedules or attendance; payroll software uses approved pay inputs to prepare payroll. Some products combine these functions, so compare the exact workflow and integration.
Time tracking and payroll connect, but they solve different steps. A time tool records hours and schedules; payroll software uses the approved inputs to run employee pay.
Compare the workflow
| Need | Time-tracking system | Payroll system |
|---|---|---|
| Record shifts or hours | Core workflow | May be included or integrated |
| Approve timesheets | Often a supervisor workflow | May receive approved time data |
| Calculate pay | Usually outside a standalone tracker | Core workflow, based on configured pay rules |
| Manage payroll reports | Limited or focused on time | Pay statements and payroll reports |
| Choose a tool | Compare clock, schedule and export options | Compare pay cycles, employee records and local support |
ADP describes timekeeping products that can record schedules and hours and transfer time data to payroll. That is an example of an integrated product family; other vendors package these functions differently.
Buying checklist
- Draw your current process from employee clock-in through manager approval and payday.
- Identify who edits time, approves it and resolves exceptions.
- Check whether approved time transfers automatically or needs a file export.
- Compare support for hourly and salaried workers, locations and pay cycles.
- Review permissions, correction history and report downloads.
- Confirm plan limits, integrations and fees with the provider.
For a payroll product shortlist, read How to Choose Payroll Software for a Small Business. Compare hiring workflows in How to Choose Applicant Tracking Software, or browse HR and payroll.
Sources
Common questions
Does time-tracking software run payroll?
Some products include payroll or send approved time data to a separate payroll system. Check the exact product and plan.
Can payroll software track employee hours?
Some payroll plans include time and attendance features. Availability, clock methods and reporting differ by vendor and tier.
What should I compare first?
Map the steps from clock-in to approved hours to payroll, then check integrations, permissions, exports and the reports your team needs.