Remote work is here to stay—but managing time across distributed teams is complicated. How do you ensure accurate payroll for hourly workers without micromanaging? How do you balance compliance needs with employee privacy? How do you handle teammates across 5 timezones?
This guide helps you set up time tracking that works for remote teams—covering policy decisions, tool selection, privacy considerations, payroll integration, and timezone challenges.
Get our time tracking policy template, tool comparison checklist, and timezone management guide.
Download Free ToolkitDifferent reasons require different approaches:
Requirements: FLSA requires tracking hours for non-exempt employees to calculate overtime. This is non-negotiable.
What you need: Accurate clock in/out times, break tracking, automatic overtime calculation, tamper-proof records for audits.
Privacy level: High tracking justified by legal requirements.
Requirements: Need to track time by project/client for billing or profitability analysis.
What you need: Project-based time tracking, manual time entry, detailed notes/descriptions, reporting by client/project.
Privacy level: Moderate—focus on project time, not surveillance.
Requirements: Want to understand how time is spent, identify bottlenecks, or monitor performance.
What you need: Activity tracking, app/website monitoring, idle time detection, productivity scores.
Privacy level: Low—high potential for distrust if not communicated carefully.
Requirements: Just want to know when people are working for collaboration/scheduling purposes.
What you need: Lightweight check-in/check-out, availability status, calendar integration.
Privacy level: High—minimal surveillance, trust-based.
The cardinal rule of remote time tracking: More surveillance = less trust.
Tools that take screenshots every 5 minutes, track mouse movements, or log every website visit create resentment and turnover. Use the minimum viable tracking for your business needs.
Our recommendation: Start high-trust. Only add monitoring if you have specific evidence of time theft (and even then, address individually rather than punishing whole team).
| Tracking Method | Best For | Pros | Cons |
|---|---|---|---|
| Automatic Clock In/Out | Hourly workers, shift workers, compliance needs | Precise hours, minimal effort, automatic overtime calculation | Requires discipline to clock in/out, can feel punitive |
| Manual Time Entry | Project-based work, consultants, creative teams | Flexible, allows context/notes, feels less surveillance-y | Relies on memory, easier to forget, less precise |
| Automatic Activity Tracking | Freelancers billing clients, productivity analysis | No manual entry, detailed insights, tracks idle time | Invasive, trust issues, false positives (thinking = idle?) |
| Pomodoro/Timer-Based | Knowledge workers, developers, writers | Encourages focus, breaks down tasks, non-invasive | Doesn't capture ad-hoc work, requires manual start/stop |
| Calendar-Based | Meeting-heavy roles, salaried employees | Minimal overhead, integrates with existing workflows | Doesn't capture non-meeting work, less accurate |
| Geofencing/GPS | Field workers, delivery drivers, on-site contractors | Automatic clock in when arriving at location, prevents buddy punching | Privacy concerns, battery drain, requires mobile app |
Tools like Gusto, Rippling, or ADP Workforce Now combine time tracking + payroll in one system.
Pros: Seamless integration, automatic sync, fewer systems to manage
Cons: May compromise on best-of-breed features, higher cost
Time tracking tool (Toggl, Harvest, TSheets) integrates directly with payroll provider via API.
Pros: Near-automatic sync, minimal manual work, best-of-breed tools
Cons: Requires compatible systems, occasional sync issues
Export timesheet data from tracking tool, import to payroll system manually.
Pros: Works with any combination of tools, full control
Cons: Manual work every pay period, risk of data entry errors
Problem: Your NYC employee starts work at 9am ET. Your LA employee starts at 9am PT. Who's late?
Solution: Define expectations by local time OR use a "core hours" model (e.g., everyone available 12pm-3pm ET).
Problem: Weekly overtime is calculated Mon-Sun, but which timezone's Monday?
Solution: Use employee's local timezone for overtime calculations. Good time tracking tools do this automatically.
Problem: Manager in London can't tell if developer in Brazil is currently working.
Solution: Use presence indicators (Slack status, time tracking "currently tracking" indicator) rather than relying on fixed hours.
Problem: Timesheets due Friday 5pm PT, but your India team is already Saturday morning.
Solution: Set timesheet deadlines 24 hours before payroll processing. Use automated reminders in each employee's local timezone.
Why it's great: Simple timer-based tracking, works offline, excellent mobile apps, integrates with 100+ tools, flexible (manual or automatic).
Privacy level: High trust—no screenshots or activity monitoring unless you enable it
Best for: Knowledge workers, project-based teams, distributed companies 5-500 employees
Pricing: Free for up to 5 users; $10/user/month for team features
Try Toggl Track Free →Why it's great: GPS tracking for field workers, automatic overtime alerts, seamless QuickBooks integration, shift scheduling built-in.
Privacy level: Moderate—GPS optional, focuses on clock in/out
Best for: Hourly remote workers, field teams, retail/hospitality with remote staff
Pricing: $20/month + $8/user/month
Try TSheets Free →Why it's great: Project-based tracking, expense tracking, invoicing built-in, beautiful reports, integrates with Slack/Asana/Jira.
Privacy level: High trust—manual entry, no surveillance
Best for: Agencies, consultants, professional services firms
Pricing: Free for 1 user; $12/user/month for teams
Try Harvest Free →Why it's great: Activity tracking, screenshot monitoring (optional), app/URL tracking, productivity scoring, GPS tracking.
Privacy level: Low trust—designed for detailed monitoring (but you can disable invasive features)
Best for: Remote teams requiring accountability, outsourced/freelance workers
Pricing: $7/user/month (Desk), $10/user/month (Field with GPS)
Try Hubstaff Free →Why it's great: Unlimited users on free plan, project tracking, reporting, integrations, time kiosk mode for shared devices.
Privacy level: High trust—simple time tracking, no surveillance
Best for: Startups, small teams, anyone needing free solution that actually works
Pricing: Free forever; $4/user/month for premium features
Try Clockify Free →If you use these platforms, time tracking is included:
Advantage: No separate login, seamless payroll sync, one vendor to manage
The problem: Requiring salaried employees to clock in/out to the minute, tracking idle time, taking screenshots.
Why it backfires: Salaried employees are paid for output, not hours. Micromanaging creates resentment and turnover.
Better approach: For exempt employees, track time for project planning/billing only. Use lightweight check-ins ("started work," "taking break," "done for day") rather than minute-by-minute surveillance.
The problem: Rolling out time tracking with no explanation. Employees assume you don't trust them.
Why it backfires: Mystery = distrust. Employees fill the information vacuum with worst-case assumptions.
Better approach: Explain clearly: "We're implementing time tracking to ensure accurate payroll and comply with labor laws" or "We need to track project time for client billing." Address privacy concerns proactively.
The problem: Punishing employees for forgetting to clock in/out during first 2 weeks.
Why it backfires: New habits take time. Harsh enforcement from day one creates anxiety.
Better approach: 30-day grace period with gentle reminders. After that, address repeated violations individually.
The problem: Requiring employees to categorize every 15-minute block by project, task, subtask, and client.
Why it backfires: Too much friction = poor compliance. People will either not track or enter garbage data.
Better approach: Start simple (just total hours). Add project categorization later if truly needed. Keep categories to 3-5 max.
Yes, for non-exempt (hourly) employees. The Fair Labor Standards Act (FLSA) requires employers to keep accurate records of hours worked for all non-exempt employees—remote or not. For exempt (salaried) employees, time tracking is optional and can be used for project management or billing purposes.
Legally, yes (in most states) if you disclose it. Practically, use extreme caution. Screenshot monitoring often violates privacy laws in California and EU, and creates massive trust issues everywhere. Only consider for high-security roles or when billing clients who require proof of work. Even then, tell employees clearly and get written consent.
Use cross-validation: compare tracked hours to project progress, client deliverables, or team norms. For hourly workers, use automatic idle time detection (e.g., pause timer after 5 minutes of inactivity). For project-based workers, focus on output rather than hours. If you suspect time theft, address individually—don't punish whole team with surveillance tools.
Good time tracking tools handle this with: (1) Reminders when you've been clocked in for 10+ hours, (2) Auto-clock-out after a set time (e.g., midnight), (3) Manager review flags unusually long shifts. Set a clear policy: "If you forget to clock out, submit a correction request to your manager within 24 hours with your actual end time."
Yes—state laws vary significantly. California requires meal break tracking and has daily overtime rules (8+ hours/day = OT). New York has strict meal break timing. Colorado has specific rest break requirements. Choose a time tracking tool that supports state-specific rules or consult an employment attorney to ensure compliance.
Use their current location's timezone for clock in/out, but calculate pay based on their home timezone (where they're employed). Example: Employee normally in NYC travels to LA for a week. They clock in at 9am PT (which is noon ET). Pay them as if they worked their normal ET hours unless they're actually working different hours. Document timezone changes in advance.
Yes, but expect pushback. Better: provide work phones, use web-based time tracking (no app required), or allow desktop-only tracking. If you require apps on personal devices, consider a BYOD stipend and ensure the app has minimal permissions (no access to photos, contacts, etc.).
Address concerns directly: "I know time tracking feels like we don't trust you. That's not the case—we're required by law to track hours for hourly employees, and we want to ensure you're paid accurately." Involve employees in tool selection (demo 2-3 options, let them vote). Start with the least invasive approach and add features only if needed.
No—that's excessive and demoralizing. Only track meal breaks over 30 minutes (which are typically unpaid). Short breaks (under 20 minutes) are compensable under FLSA and shouldn't require clocking out. Set clear expectations: "You don't need to clock out for bathroom breaks, coffee, or short personal tasks. Only clock out for lunch breaks over 30 minutes."
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