If you are still asking your technicians to write down their hours on a piece of paper at the end of the week, you are not just “old school”—you are losing thousands of dollars a year to memory loss and “optimistic rounding.”
In the field service industry, Labor is your single biggest expense. It is also the hardest to track.
- Did the technician arrive at 8:00 AM or 8:15 AM?
- Did they take a 30-minute lunch or a 45-minute lunch?
- Are you paying them for the drive home when you shouldn’t be?
Paper timesheets are a “Honor System,” and unfortunately, the Honor System is expensive.
Modern Time Tracking & Payroll Software replaces the clipboard with a GPS-enabled mobile punch clock. It eliminates “Buddy Punching,” automates overtime calculations, and syncs directly to your payroll provider (like Gusto or QuickBooks) with one click.
This guide explores the transition from paper to pixels, the legal complexities of “Drive Time,” how to move to performance-based pay, and how to choose software that keeps you compliant and profitable.
Quick Definitions
Geofencing: A virtual GPS perimeter around a job site. The app alerts the technician (or manager) if they try to clock in while miles away from the customer’s house.
Buddy Punching: One employee clocking in for another who is running late. Digital apps prevent this using device IDs or facial recognition.
Labor Burden: The total cost of an employee (Wages + Taxes + Benefits). Tracking just “Hours” isn’t enough; you must track the cost of those hours.
Billable vs. Non-Billable: Billable hours are charged to the customer (fixing the sink). Non-Billable hours are paid to the tech but not charged to the customer (driving, stocking the truck).
Portal-to-Portal: A pay policy where the employee is paid from the moment they leave their home/shop until they return.
| Software | Best For | Starting Price | Action |
|---|---|---|---|
| Jobber ⭐⭐⭐⭐⭐ (4.9/5) | 🚀 Best Overall Small to Med Business | $19 / month | Try Free Read Review |
| Workiz ⭐⭐⭐⭐⭐ (4.8/5) | 📞 Best for Dispatch Locksmith & Garage | $29 / month | Try Free Read Review |
| Housecall Pro ⭐⭐⭐⭐☆ (4.6/5) | 🎨 Best for Visuals Residential Sales | $49 / month | Visit Site Read Review |
| ServiceTitan ⭐⭐⭐⭐☆ (4.5/5) | 🏢 Best for Enterprise Commercial & Heavy Service | Custom Quote | Get Demo Read Review |
| FieldPulse ⭐⭐⭐⭐☆ (4.5/5) | 📱 Best Mobile App Easy to Use | $59 / month | Visit Site Read Review |
| RepairShopr ⭐⭐⭐⭐☆ (4.4/5) | 💻 Best for Repair Shops IT & Electronics | Custom Quote | Visit Site Read Review |
| Simpro ⭐⭐⭐⭐☆ (4.4/5) | 🏗️ Best for Projects Construction & Security | Custom Quote | Get Demo Read Review |
| Service Fusion ⭐⭐⭐⭐☆ (4.3/5) | 🎧 Best for VoIP Mid-Market Service | Custom Quote | Get Demo Read Review |
| FieldEdge ⭐⭐⭐⭐☆ (4.2/5) | 🔄 Best for QB Desktop Legacy Sync Users | Custom Quote | Visit Site Read Review |
| Successware ⭐⭐⭐⭐☆ (4.2/5) | 📊 Best for Accounting Plumbing & HVAC | Custom Quote | Visit Site Read Review |
| Zoho Field Service ⭐⭐⭐⭐☆ (4.1/5) | 💰 Best Budget Zoho Users | $15 / month | Visit Site Read Review |
| Thryv ⭐⭐⭐⭐☆ (4.0/5) | 📢 Best for Marketing All-in-One CRM | Custom Quote | Visit Site Read Review |
| RazorSync ⭐⭐⭐☆☆ (3.9/5) | ⚡ Simple Service Field Service Basics | Custom Quote | Visit Site Read Review |
✅ Verified Data: Checks on Jan 29, 2026 via vendor portals.
Source: Pricing Index
(DOI/Dataset).
Disclosure: We may earn commissions. Learn more & Methodology.
The Hidden Cost of Paper Timesheets: The “Rounding Up” Tax
Most business owners assume their technicians are honest. And most are. But human nature dictates that if a tech arrives at 8:07 AM, they will write down “8:00 AM” on their timesheet.
It seems harmless. It’s just 7 minutes, right?
Let’s do the math.
- The Leak: 10 minutes of “padding” or lost time per technician, per day.
- The Wage: $30/hour (Cost to company with burden: ~$45/hour).
- The Cost: $7.50 per day, per tech.
- The Scale: 5 Technicians x 5 Days/Week x 50 Weeks/Year.
- Total Loss: $9,375 per year.
That is nearly $10,000 of pure profit vanishing into thin air, simply because you use paper instead of a precise digital clock.
The Drive Time Dilemma (Portal-to-Portal)
One of the most confusing (and litigious) aspects of field service payroll is Travel Time. Do you pay a technician while they are driving?
The answer is: It depends.
1. The “Home to First Job” Rule (The Commute)
Under the Portal-to-Portal Act (part of FLSA), normal commuting time is generally not compensable.
- Scenario: Technician drives his personal car from Home to the Office.
- Ruling: Unpaid Commute.
- The Complexity: What if he takes the company truck home? Generally, if the use of the vehicle is “incidental” (for his convenience), it is still considered a commute and is unpaid. However, if he is transporting heavy equipment or other employees, it might become paid work time.
2. Job-to-Job Travel
Once the technician clocks in at the first job (or the shop), the clock is running.
- Scenario: Driving from the 8:00 AM job to the 10:00 AM job.
- Ruling: Paid Work Time. This is “All in a day’s work.”
- Software Role: Your dispatch and scheduling software needs to track this specifically as “Drive Time” so you can pay the tech, but not bill a customer for it.
3. Take-Home Vehicle Policies
Many owners offer “Take Home Trucks” as a perk.
- Policy: “Your drive to the first job is unpaid, up to 45 minutes. Anything over 45 minutes is paid.”
- Enforcement: Paper sheets make this impossible to track. GPS software automates it. You set a rule: Clock-in is disabled until GPS shows arrival at Job 1 OR 45 minutes of driving has occurred.
Warning: Labor laws vary by state (especially California). Always consult an employment lawyer. Software logs provide the data you need to defend your policy.
Core Features of Modern Time Tracking
Modern FSM software doesn’t just “count hours.” It adds context, location, and categorization to every minute.
1. GPS & Geofencing (The “Trust but Verify” Tool)
You cannot be at every job site to ensure the crew arrived on time. The software acts as your eyes.
- The Feature: When the tech opens the mobile app to clock in, the app checks their GPS coordinates.
- The Rule: If they are at the coffee shop down the street, the app says: “You are not at the job site. Clock-in blocked.”
- The Result: Perfect accuracy. You pay for time on site, not time near the site.
2. Job Time vs. Paid Time (The Critical Distinction)
This is where generic time apps (like a simple stopwatch) fail for contractors. You need to track two different “Buckets” of time simultaneously.
- Payroll Time (Paid): The total hours the tech is on the clock (e.g., 8:00 AM to 5:00 PM = 8 Hours Paid). This determines the paycheck.
- Job Time (Billable): The specific hours spent fixing the AC unit (e.g., 9:00 AM to 11:00 AM). This determines Job Costing.
- The Gap: The time in between (Driving, Warehouse, Training) is Paid but Non-Billable. Good software tracks this “Gap” (often called “Unapplied Time”) so you can see how efficient your team really is.
3. Overtime Alerts
Overtime (OT) kills margins. If you quoted a job at standard rates but end up paying Time-and-a-Half labor, you might lose money.
- The Feature: The dispatch board monitors the weekly total for each tech.
- The Alert: When Steve hits 38 hours on Thursday, the dispatcher gets a warning: “Steve is approaching OT. Assign Friday’s jobs to Mike instead.”
4. Crew Clock-In (For Construction)
If you run a landscaping or construction crew, you don’t want 5 guys fumbling with phones.
- The Workflow: The Foreman has the iPad. He selects his crew (Mike, Dave, Bob) and hits “Clock In All.”
- The Benefit: Speed. The crew gets to work immediately, and the data is centralized.
- Best Tool: Simpro’s prevailing wage features excel at this complex crew management.
Moving Beyond Hourly: Performance Pay
As field service businesses mature, many move away from “Hourly Pay” to “Performance Pay” (also called Piece Rate or Commission-Based Pay). This incentivizes technicians to be efficient and upsell.
The Concept:
Instead of paying Steve $30/hour to fix a water heater (whether it takes 2 hours or 4 hours), you pay him a flat $80 for the task or a percentage of the revenue.
The “Sold Hours” Metric:
- Worked Hours: The actual time the tech spent (e.g., 3 hours).
- Sold Hours: The book time estimated for the job (e.g., 4 hours).
- The Bonus: If Steve finishes in 3 hours, he still gets paid for 4 “Sold Hours.” He effectively gave himself a raise by being skilled.
The Software Requirement:
You cannot manage Performance Pay on a spreadsheet—it is too complex. You need software like ServiceTitan that tracks:
- Revenue generated.
- Commission tier (e.g., 8% on labor, 3% on parts).
- Billable efficiency.
- “Min-Pay” Floor (ensuring you still meet Minimum Wage/Overtime laws, which act as a safety net).
Deep Dive: Read more about ServiceTitan’s performance pay capabilities.
The Payroll Integration: The “One-Click” Dream
The ultimate goal is to delete your “Data Entry” day.
The Old Way:
- Collect paper sheets on Friday.
- Decipher handwriting.
- Manually type hours into an Excel spreadsheet to calculate OT.
- Manually type those totals into Gusto or ADP.
- Pray you didn’t make a typo.
The New Way:
- Tech Approves: On Friday, the tech reviews their digital timesheet on their phone and signs it (Digital Signature).
- Manager Audits: You log in, see a dashboard of all timesheets. Flags appear for “Missed Clock-out” or “Geofence Violation.” You fix the errors.
- The Sync: You click “Export to Payroll.”
- Done: The hours push directly to Gusto, QuickBooks Payroll, or ADP. Taxes are calculated, and direct deposits are queued.
Related: Syncing timesheets to QuickBooks Payroll.
Compliance: Protecting Yourself from Lawsuits
Labor laws are getting stricter, especially in states like California.
- Meal Breaks: You must prove your employee took a 30-minute unpaid lunch. Digital apps force the tech to clock out for lunch and block them from clocking back in until 30 minutes have passed. This digital log is your defense in a lawsuit.
- FLSA Record Keeping: The Dept of Labor requires accurate records. A GPS-stamped, time-stamped digital log is much more defensible in court than a scribbled piece of paper that could have been written yesterday.
Top Software for Time & Payroll
| Software | Best For | Payroll Integrations | Key Feature |
|---|---|---|---|
| ServiceTitan | Enterprise | Payroll Pro: Native, full-service payroll (powered by ADP/others). | Performance Pay: Calculates complex commission/bonus structures. |
| Jobber | Small Biz | QuickBooks Time: Deep integration. | GPS Waypoints: Simple visual map of the tech’s day. |
| ClockShark | Construction | Universal: Integrates with almost everything. | Geo-Fencing: Best-in-class location restrictions. |
| Housecall Pro | Residential | Gusto: Seamless sync. | Ease: Simple interface for techs. |
- Comparison: For a detailed look at how the top two contenders handle payroll, read our Jobber vs ServiceTitan comparison.
- SMB Choice: Jobber’s GPS time tracking is perfect for simple, reliable tracking.
The 7-Point Payroll Compliance Audit
Before you run your next payroll, check your system against this list.
- [ ] Overtime Rules: Are your OT rules (Daily vs Weekly) configured correctly for your specific state laws?
- [ ] Lunch Break Auto-Deduct: Do you have a policy for missed lunch punches? (e.g., Auto-deduct 30 mins if shift > 6 hours – check legality first).
- [ ] Geofence Radius: Is your radius set tight enough (e.g., 500 ft) to be accurate, but loose enough to account for GPS drift?
- [ ] Unapproved Time: Do you have a “Zero Tolerance” policy for unapproved timesheets? Never process payroll until the technician has digitally signed off.
- [ ] Ghost Clock-ins: Audit your “Manual Edits.” If a manager is manually editing 20% of punches, your adoption is failing.
- [ ] Drive Time Codes: Are “Drive Time” and “Shop Time” mapped to different General Ledger codes for proper overhead tracking?
- [ ] Sync Verification: Did the total hours in Gusto match the total hours in your FSM software exactly?
Implementing a New Time Policy
Technology is easy; people are hard. Your technicians will resist GPS tracking. They will call it “Big Brother.”
The “Privacy” Conversation Script:
“Guys, we are switching to this app not to spy on your weekends. The app only tracks you when you are clocked in green. Once you clock out, the GPS turns off. We are doing this to ensure you get paid for every minute you work—no more guessing—and to help dispatch send the closest guy to the emergency calls.”
The “Forgot to Clock Out” Policy:
It will happen. Establish a rule:
“If you forget to clock out, text the office immediately with the correct time. If you wait until Friday to tell us, your paycheck might be delayed while we verify the GPS data.”
FAQ: Time Tracking & Payroll
Can I track my employees’ GPS location when they are off the clock?
Generally, no. Most modern apps automatically disable GPS tracking when the status is “Off Duty” or “Clocked Out” to protect employee privacy and battery life. Always check your state laws regarding privacy.
What is “Geofencing” in time tracking?
A geofence is a virtual circle (e.g., 500 feet) around a specific job address. The software uses the phone’s GPS to detect if the technician is inside that circle. You can set rules to alert managers if a tech clocks into a job while outside the geofence (indicating they might be clocking in from home).
Does Jobber have built-in payroll?
No. Jobber tracks the time. It then integrates with payroll providers like QuickBooks Online or Gusto to actually cut the checks. This is the “Best of Breed” approach.
How do I stop “Buddy Punching”?
“Buddy Punching” is when one employee clocks in for another. Mobile apps prevent this by tying the clock-in to a specific device ID. Some advanced apps even require a “Selfie” (facial verification) to clock in.
What is the difference between billable and non-billable time?
Billable: Time spent performing work that the customer pays for (e.g., repairing a pipe).
Non-Billable: Time the company pays for, but the customer does not (e.g., driving to the warehouse, team meetings, washing the truck).
Tracking both is essential for calculating your true Labor Burden.
Can I sync time tracking directly to Gusto?
Yes. Most major FSM tools (Housecall Pro, ServiceTitan) have a direct API integration with Gusto. You click a button, and the hours (Regular + Overtime) populate in Gusto instantly.
Do I have to pay technicians for drive time?
This depends heavily on local labor laws (especially the Portal-to-Portal Act). Generally, the drive from home to the first job is considered an unpaid commute. However, the drive between Job A and Job B is compensable work time. Software helps you distinguish these segments automatically.
How does software handle overtime calculations?
You configure your “Work Week” (e.g., Mon-Sun) and your “Overtime Rule” (e.g., >40 hours/week or >8 hours/day for California). The software automatically separates “Regular Hours” from “Overtime Hours” in the export file, so payroll applies the 1.5x multiplier correctly.
Can a foreman clock in for the whole crew?
Yes. This is a common feature in construction-focused apps like ClockShark or Simpro. The foreman selects all 5 crew members on his iPad and clocks them all in at once.
How do I calculate ‘Unapplied Time’ efficiency?
Unapplied Time is the gap between “Total Paid Hours” and “Total Billable Hours.”
Formula: (Billable Hours / Paid Hours) x 100 = Efficiency %.
Goal: Aim for 75-85% efficiency. If you are at 50%, you are paying for too much windshield time or idle time.
Does time tracking software work without cell service?
Yes. If the tech is in a basement or rural area, the app stores the “Clock In” timestamp and GPS location locally on the phone. As soon as they regain signal, it uploads the data to the server.
Sources
- Gusto Field Service Integration (Verified Jan 2026) – https://gusto.com/
- DOL FLSA Guide (Verified Jan 2026) – https://www.dol.gov/
- ServiceTitan Payroll Pro (Verified Jan 2026) – https://www.servicetitan.com/products/payroll
- QuickBooks Time (Verified Jan 2026) – https://quickbooks.intuit.com/time-tracking/