An online timesheet is the digital record organizations use to track, verify, and pay for hours worked, replacing paper logs and spreadsheets with a system employees and managers can access from anywhere. Labor makes up 70 to 85% of total operating costs for most frontline organizations, so how those hours get tracked has a direct line to payroll accuracy, compliance, and the bottom line.
Inaccurate timekeeping, time theft, and accidental overtime can balloon those costs, and mistakes here often lead to compliance problems and fines down the road.
This article covers:
- What an online timesheet is and how it works
- The benefits of using online timesheets
- The types of timesheets, from paper to dedicated time tracking software
- The features every timesheet needs to work well for your team
What is an online timesheet?
Most time tracking spreadsheets and online timesheets log the same core details: clock-in and clock-out times, breaks, and total hours worked for the day. Depending on the tool, some also capture project notes or daily updates on completed work.
Employees used to record all of this by hand on paper. Today, most organizations track time through web and mobile apps that give managers and HR real-time visibility, instead of waiting on a stack of timecards at the end of the week.
Online timesheet sample format
A typical timesheet includes a few core data points:
- Employee information – Employee’s full name, employee ID, and job ID(s).
- Date range – Typically the beginning and end of the pay period, date ranges may also be weekly, bi-weekly, monthly, or project-based.
- Project or task – Employees may need to note clients or projects they worked on and for how long. This is more common in service-based, professional industries like law and consulting.
- Comments or additional information – For certain types of projects, employees can add more context about progress, status, or completion of work.
Whether or not they’re on paper or a computer, most online timesheet samples and templates include some variation of this information. Paper timesheets are limited to more simplified inputs, while digital timesheets are built with more nuance and context.
The benefits of using online timesheets
Because they’re integral for many teams and departments in an organization, online timesheets play a large role in how smoothly operations flow. The potential is even greater with digital timesheets and time tracking software built for the complexity of frontline scheduling.
Aside from functional features, like payroll fulfillment, timesheets also create consistency for client billing and project management.
Here are a few benefits of using online employee timesheets.
Payroll and compliance accuracy
For hourly and non-exempt employees, timesheets help correctly calculate pay. When you shift to employee time tracking software, it can also handle the complexities of time tracking, like exception management and compliance for breaks, overtime, and mandatory time off (e.g., trucking, emergency services, etc.).
Accurate payroll goes beyond direct compensation: 49% of HR teams spend five or more hours a month fixing payroll issues, and 42% of employees say payroll mistakes have hurt their relationship with their employer.
Well-managed timesheets reduce that turnover risk and put time back in the hands of managers and HR teams. Organizations that move to automated time tracking typically cut payroll processing time by up to 75% and recover 3 to 7 minutes per employee, per day, that used to go into manual entry and corrections.
Billing and invoicing
Invoices for hourly billing need an hourly breakdown behind them, which makes timesheets essential for service-based industries like consulting and legal.
Software automates the time tracking process, creating a more precise, streamlined billing process. Without automation, employees may forget to track their time or inflate their hours, leading to inconsistencies that might raise questions from clients.
Project and performance visibility
Timelines are one of the hardest parts of project management. Project managers can use timesheets to see how long tasks take, understand each project member’s capacity, and highlight inefficiencies through job costing.
Timesheets help project managers know a project’s scope and team’s pace, which improves:
- Scoping, staffing, and resource management
- Trust with stakeholders
- Client satisfaction
Keep in mind, this visibility is nearly impossible if you’re tracking data across dozens or even hundreds of manual timesheets every week.
Types of timesheets (physical and digital)
Paper and mechanical timesheets still exist alongside newer digital options, and all of them serve the same basic purpose: tracking time for employees. Each medium comes with its own tradeoffs.
| Type | Pros | Cons |
| Paper timesheets | Simple for small teams without software | Prone to errors, illegible handwriting, easy to lose or damage, vulnerable to time theft, and slow to process manually |
| Mechanical timesheets (time cards, punch cards) | Standard in industrial, warehouse, or field environments; more automatic than paper | Still need manual collection and review, no project or task detail, equipment upkeep required, and vulnerable to buddy punching |
| Spreadsheet timesheets (Excel, Google Sheets) | More scalable than paper, easy to access for employees, managers, and HR, and formulas can streamline payroll math | Still needs manual entry and validation; version control gets messy over email; vulnerable to tampering or formula errors |
| Time tracking software | Time tracking software reduces errors from eliminating manual entry, stronger reporting accuracy, integrates with scheduling and payroll, and better labor cost visibility | Takes more time to set up and onboard than a spreadsheet and requires more upfront investment than manual options |
Must-have timesheet features
Regardless of format, all timesheets will include basic information about the employee and their hours worked. Moving to timesheet software means organizations can run payroll, generate invoices, and pull reports far faster than paper ever allowed.
To reach these new levels of operational capacity, timesheets must have these features:
- Compatibility – Timesheet solutions should be interoperable with common operating systems and devices so employees can log hours and tasks on multiple devices.
- Filtering – Users should be able to filter by date range, department, project, and client. These filters allow HR teams to automate payroll processes, managers to monitor employee performance, and finance teams to generate invoices.
- Reporting – Timesheets should help uncover strategic planning, hiring, and capacity insights. Any timesheet software should have built-in reporting capabilities and should integrate with your organization’s data analytics and reporting tools.
Without these features, organizations face payroll errors, outdated workflows, and needless friction in time tracking.
Frequently asked questions about online timesheets
What’s the difference between a timesheet and a time card?
A time card is usually just the raw punch record: clock-in and clock-out times tied to a time clock. A timesheet is the fuller record built from those punches, plus breaks, project or task detail, and any notes on the work performed. Most time tracking software uses the terms interchangeably, but the timesheet is typically what gets used for payroll and reporting.
Do online timesheets integrate with payroll software?
Most dedicated time tracking software does. Platforms like TimeClock Plus connect directly with major payroll and HRIS systems, so approved hours move into payroll without anyone re-entering data. Spreadsheet timesheets don’t integrate on their own — someone has to manually move the numbers over, which is where a lot of payroll errors start.
How long do employers need to keep timesheet records?
Under the Fair Labor Standards Act, employers must keep payroll records for at least three years and the records used to calculate wages, like timesheets and time cards, for at least two years. Some states require longer retention, so it’s worth checking state rules on top of the federal minimum.
Can hourly and salaried employees use the same timesheet system?
Yes, though what gets tracked usually differs. Hourly and non-exempt employees need detailed clock-in and clock-out data tied directly to pay. Salaried and exempt employees typically need a lighter timesheet for time off, project time, or compliance purposes. Good time tracking software lets you configure both without forcing exempt staff through a full punch process.
Is it worth switching from spreadsheets to timesheet software for a small team?
It depends on how much manual correction is happening. If a small team spends more than a few hours a month fixing timesheet errors or reconciling versions, dedicated software usually pays for itself quickly. Even a lightweight tool removes the version-control and formula-tampering risk that comes with shared spreadsheets.
Picking the timesheet that’s right for you
Whether you’re still relying on paper timesheets or trying to improve your online timesheets, one thing is clear: your time tracking system can be your biggest operational advantage, or your biggest time sink.
Choosing a timesheet format that’s both accessible and accurate is essential for controlling labor costs, maintaining compliance, and making sure your teams are set up to do their best work. With the right tools in place, timesheets go from a tedious task to one of your organization’s biggest efficiency wins.
And if your organization is ready, learn why you should (probably) upgrade from online timesheet software altogether.
TCP Software’s employee scheduling and time and attendance solutions have the flexibility and scalability to suit your business and your employees, now and as you grow.
From TimeClock Plus, which automates even the most complex payroll calculations and leave management requests, to Humanity Schedule for dynamic employee scheduling that saves you time and money, we have everything you need to meet your organization’s needs, no matter how unique. Plus, with Aladtec, we offer 24/7 public safety scheduling solutions for your hometown heroes.
Ready to learn how TCP Software takes the pain out of employee scheduling and time tracking? Speak with an expert today.
