Author: janareserva

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How Time Tracking Systems Help (or Hurt) Wage Compliance

Summary:

  • Wage and hour lawsuits often stem from uncaptured work time, not from missing punches.
  • Because labor laws define “hours worked” differently across jurisdictions, how time tracking systems are configured matters.
  • The right time tracking software helps surface gaps early and reduces compliance risk.

The most expensive wage claims don’t always come from missed punches. Sometimes, they come from an employer’s failure to track compensable time according to labor laws. For organizations, the challenge is operationalizing those requirements through how time tracking systems are set up. 

How untracked work could turn into a lawsuit

A recent wage settlement illustrates how everyday tasks not recorded as work time can expose employers to serious legal risk.

In a case involving a Target distribution center operations in New Jersey, a group of hourly, non-exempt employees alleged they were not compensated for time spent on required activities before and after their scheduled shifts. According to the complaint, workers were required to complete pre-shift activities—including passing through mandatory security screenings and walking long distances from facility entrances to their assigned workstations—before clocking in. After clocking out, employees had to walk back through the same controlled areas and security checkpoints before leaving.

The plaintiffs argued that the time spent on these activities should be considered hours worked under applicable wage laws and that excluding this time from pay calculations resulted in lower wages and incorrect overtime amounts..

Target denied the allegations and maintained that these activities were not compensable. Nonetheless, to avoid protracted litigation and ongoing risk, the company agreed to a $4.6 million settlement covering eligible current and former workers at the affected New Jersey facility.

Also read: Time Clock Rounding: Best Practices & Compliance Risks

Why configuration matters

When wage and hour lawsuits make headlines, it’s easy to assume the issue stems from outdated or manual systems. In reality, most large employers already use automated time tracking. Employees clock in and out, and hours are recorded consistently.

The risk tends to emerge elsewhere. It often comes down to how time tracking systems are configured, and whether the policies built into those systems reflect how work actually happens on the ground.

Labor laws are not always intuitive, and day-to-day operations don’t neatly map to the fine print of wage regulations. Oftentimes, compliance issues surface when required activities fall outside what systems are set up to capture. And those gaps go unnoticed.

That challenge is compounded by the way wage laws are structured. Federal wage law draws a relatively narrow line around what counts as paid work. Many state laws draw a wider one. As a result, activities such as security screenings or walk time, may be unpaid under federal rules, but still create liability under state law.

Platforms like Workforce.com are built with this reality in mind. They provide guardrails that support accurate time capture, consistent policy enforcement, and clear documentation across the workforce. That level of visibility is critical for day-to-day operations, especially when reviewing policies, preparing for audits, or responding to legal or regulatory inquiries that require a clear record of how employee time was tracked and paid.

Why feedback becomes a crucial compliance guardrail

In theory, it may seem straightforward to treat activities like pre-shift and post-shift screenings or long walks through controlled areas as paid time. In practice, those decisions are rarely simple. Whether time should be counted often depends on how work is structured, how much control the employer exercises, and how applicable wage laws are interpreted at the state level.

That complexity is challenging to navigate in real time. Labor rules evolve, guidance can be unclear, and the way work actually happens day to day doesn’t always match written policies or out of the box system configurations.

This is where employee feedback becomes a powerful compliance guardrail. By giving employees a structured way to share feedback at the end of a shift, organizations gain visibility into what actually occurred during the workday. Patterns like required activities outside scheduled hours or delays that extend time on site can surface quickly.

Catching these signals early allows employers to review configurations, clarify policies, and address issues before they escalate into formal complaints, investigations, or costly wage and hour disputes.

Ultimately, wage compliance issues surface most visibly in payroll. When time tracking doesn’t reflect the work, those gaps affect pay calculations, regular wages, and overtime.. By the time issues show up in payroll, the risk has already compounded. That’s why accurate time capture and system configuration are so critical.

Also read: 5 Tips to Simplify Overtime Calculations

Using the right technology to track time and stay compliant

Staying compliant ultimately comes down to visibility and consistency. Employers need systems that accurately capture time and surface potential issues before they escalate.

Workforce.com brings these capabilities together in a single platform. It allows organizations to track employee time accurately, configure rules based on their policies and applicable labor laws, and gather shift-level feedback that provides insight into day-to-day operations.

At the core is Workforce.com’s time and attendance tracking, which supports accurate time punches, and helps teams monitor common risk areas. The platform can flag missing time logs, missed breaks, and approaching hour thresholds. This allows managers to address issues in real time rather than after the fact.

Alongside time tracking, Workforce.com’s shift feedback tools give employees a simple way to rate their shift and share comments on what worked and what didn’t. Over time, this feedback can surface patterns that indicate policy gaps or potential compliance issues, allowing employers to review configurations and make proactive adjustments.

Wage and hour compliance is complex, particularly for organizations with large hourly workforces. But with the right technology in place, it becomes easier to align policies, systems, and day-to-day operations. Learn how Workforce.com helps hourly teams bring time tracking, scheduling, HR, and payroll together in one platform. Book a call today.

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A Year of Listening, Learning, and Building at Workforce.com

As 2025 comes to a close, we’re taking a moment to look back on some of the highlights from the year at Workforce.com.

Over the past year, we continued to invest in product improvements across the platform, earned industry recognition, and shared new customer stories. This lookback highlights moments that reflect Workforce.com’s evolution, setting the direction for how teams manage complex, hourly workforces.

Continuing to build the platform that hourly teams rely on

In 2025, Workforce.com shipped 150+ product updates focused on improving payroll accuracy, labor visibility, and how managers get work done day to day.

Rather than chasing isolated features, many of this year’s updates strengthened the systems customers rely on most: 

Stronger payroll guardrails

Throughout 2025, Workforce.com continued to strengthen pay checks and validation rules. This included clearer warnings, more consistent blocking behavior when data is invalid, and improved reconciliation when worked hours don’t match scheduled hours. 

Faster hiring and employee management

Hiring workflows were streamlined with bulk actions, resume summaries, and improved candidate review screens. We also strengthened HR tools to manage surveys, training, warnings, and employee records in a single place. 

Smarter reporting and workforce insights

Workforce.com continues to refine reporting capabilities in 2025, with dozens of new reports, added filters and columns, and improvements to how reports can be saved and accessed. Updates like saved reports on dashboards and more flexible grouping and filtering made it easier to monitor labor costs, sport trends, and answer key questions. 

Better control over labor costs

Updates throughout the year improved how labor costs are tracked across schedules, timesheets, and budgets. These improvements provide more precise comparisons between scheduled and worked hours and prevent unpleasant surprises at the end of the pay period. 

Hundreds of day-to-day usability improvements

Workforce.com rolled out a wide range of usability improvements to reduce friction for managers and admins. These included redesigned pages across HR, hiring, and time & attendance; expanded bulk actions and imports across payroll and reporting; and a steady stream of workflow refinements that make everyday tasks quicker and easier as teams scale.

Hearing directly from the teams we serve

This year, Workforce.com featured in-person customer stories, where we spent time with them on the ground and heard directly from the people using the platform every day. 

We visited Shipley-Donuts, Third Space Brewing, and Altitude Trampoline Park and spoke with operators and managers about how they run their teams day to day. Managers consistently emphasized the same results: significant time savings by streamlining everything in a single platform. 

Shipley Do-Nuts, for instance, relied on separate platforms for new hire paperwork, clocking in and out, scheduling, and payroll processing. Managing and integrating all these systems was time-consuming and inefficient.

“Integrating all of those together (in Workforce.com) has saved so much time. It takes me about 95% less time than before,” remarks Shelly Archer, Human Resources Manager at Shipley Do-Nuts.

Meanwhile, the team over at Third Space Brewing reported 100% time saved on verifying payroll data. “We definitely saved time from not having to reconcile numbers between two different platforms all the time,” shares Scott Passolt, Controller at Third Space Brewing. “Everything flows really easily. If we know the timesheets are correct, we know payroll is correct. I certainly have more confidence in the accuracy of the numbers. It has given us a lot of peace of mind that we didn’t miss something in moving numbers between systems.”

Bria Stuckey, General Manager at Altitude Trampoline Park, also shared the same sentiments, “What I like most about Workforce.com being all-in-one is that I can do everything right there. With other apps, we had to schedule in one system and then go into another application to fix timesheets. It was just a whole thing.”

Read more stories from the teams using Workforce.com.

Beyond the customer stories we featured this year, Workforce.com continued to receive positive feedback on independent review platforms like G2. Across reviews, customers frequently pointed to time savings from admin work and scheduling, clearer visibility into labor costs, fewer payroll headaches, and an overall experience that’s easy for both managers and frontline teams. Taken together, that feedback reinforces what we saw throughout 2025: when teams have better systems and simpler workflows, they spend less time fixing issues and more time running their business. 

Workforce.com’s progress in 2025 was also recognized across the industry, with accolades from Capterra, Software Advice, and GetApp. These recognitions are driven by user reviews and ratings, making them a strong reflection of how customers experience the platform day to day.

Staying ahead in 2026 and beyond

As Workforce.com looks ahead to 2026, the focus is simple: keep building software that helps teams run better day to day. The challenges facing hourly workforces aren’t getting smaller, and neither is the need for systems that catch issues early, reduce manual work, and support teams as complexity grows.

In our HR and Payroll Trends for 2026 report, we break down what’s changing next across payroll, compliance, and automation.

Ready to see how Workforce.com can help you stay ahead? Book a demo today.

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HR and Payroll Trends for Hourly Teams [2026]

Summary:

  • Hourly teams in the U.S. will face both new and familiar challenges in 2026, and the companies that lead will be those that understand their operational needs and invest in solutions that keep them competitive.
  • AI will continue to dominate conversations, but the real advantage will come from using it effectively, not just adopting it.
  • Automation and the push to eliminate manual processes will accelerate, with organizations seeking tools that do the work rather than just support it.
  • A true all-in-one platform can help hourly workforces stay ahead, bridging gaps across compliance, payroll, and workforce operations.

Hourly teams across the United States are heading into 2026 facing long-standing challenges and emerging trends. The labor market remains tight, compliance keeps getting tougher, and the frontline workforce is transforming faster than most organizations can keep up. 

As of late 2025, the U.S. civilian labor force participation rate is hovering around 62-63%, still below pre-pandemic norms. The gap underscores how hard it remains to attract and retain top talent, even as labor costs are rising. More than 20 states raised their minimum wages in 2025 alone, with further increases scheduled for 2026 and beyond.

At the same time, technology continues to reshape how hourly work is managed. In 2026, the competitive edge will go to organizations implementing smarter technology that doesn’t just support work but actually does the work. We’re talking about systems that not only handle administrative tasks but also take action based on different data and insights. 

In 2026, the winners won’t be the ones chasing shiny trends. They will be those who move faster than regulatory changes, adapt quickly to new technologies, embrace challenges, and configure their systems to keep pace with existing trends and stay ahead of new ones. 

Below are five HR and payroll trends hourly teams should expect and prepare for as 2026 unfolds. 

Companies effectively using AI will stay ahead in 2026.

And no, this is not simply adopting AI. It is about using AI in ways that actually move the business forward. 

While AI investment continues to surge, very few companies feel confident about how they use it. In fact, a study found that only 1 percent of organizations believe they are implementing AI sufficiently to deliver substantial business outcomes. The gap between using AI and using it well is becoming one of the most significant competitive divides heading into 2026. 

Over the past year, we have already seen AI take deeper root in HR and workforce management. Adoption has grown steadily throughout 2025, especially in areas like hiring and recruitment. More organizations are recognizing how AI can support critical operational processes, including labor forecasting and demand-based scheduling.

“One of the great value propositions of Workforce.com is to optimize staffing levels, which can have tremendous savings for employers and fewer headaches for employees. AI has been a tremendous tool in that product,” shares Craig Chval, Vice President of Product at Workforce.com. 

Workforce.com adopted AI early and applied it directly to labor forecasting. By analyzing factors such as historical sales, booked appointments, local events, and even weather patterns, the platform can determine how many employees should be on shift on any given day. The result is better staffing accuracy, stronger margins, and more consistent service. 

But forecasting is just one part of it. AI is now helping customers in broader operational areas as well. “AI continues to be the biggest shift in this space. It provides customers clear visibility into how compliance rules are applied, rather than relying on calculations that are hard to interpret. It also helps surface risks early, such as warning when schedules break minor hours or when patterns may trigger a Fair Workweek obligation,” explains Travis Kohlmeyer, General Manager at Workforce.com.

AI is still a buzzword for a reason. But it is no longer a matter of whether organizations should use it. We are well past that point. The businesses pulling ahead today are the ones using AI to streamline their operations and solve real pain points. For hourly teams, the key is applying AI with focus and purpose. That means choosing use cases that matter rather than broad, unfocused applications that do not actually help the business run better.

Compliance becomes central to payroll software buying decisions.

Hourly teams are increasingly recognizing that payroll software needs to do more than generate payslips.

For organizations with shift-based workforces, payroll is inherently complex because no two pay cycles look the same. Hours fluctuate, roles change, and even small scheduling differences can significantly affect what an employee earns.

“Often, organizations don’t realize that some of the really big names in payroll systems actually lack the compliance capability for so many different work rules,” Travis explains. “Break compliance, minor working hour rules, and Fair Workweek are the most we see miscalculated on some platforms.” 

Payroll for hourly teams is not about assigning a pay rate and expecting the platform to handle the rest. Every pay period carries its own variables: different schedules, shift changes, varying roles or departments, premiums, and overlapping rules. This is why businesses must understand how their current payroll system handles these scenarios, or whether it handles them at all.

Workforce.com is built to manage this complexity from the ground up. The platform focuses deeply on how work rules and pay rules operate together. “We treat compliance as a design constraint, and not merely a patch. That means more robust rule engines, better guardrails in scheduling, and clearer auditability,” Travis adds.

Compliance may be complicated, but it is manageable with a payroll platform designed to understand the real-world scenarios that create risk. This includes minor laws, multi-role staff, split shifts, overlapping rules, and complex premium structures. With federal, state, and city-level regulations expected to continue evolving, organizations will increasingly look for payroll systems that anticipate these changes and help keep them ahead of costly mistakes. 

Many will switch to all-in-one platforms to eliminate manual processes.

Many organizations are moving toward all-in-one platforms to eliminate manual processes and reduce complexity. But a genuine all-in-one solution is more than a collection of loosely stitched-together apps. It is a single ecosystem where scheduling, time tracking, HR, payroll, and other workflows all operate in one place. We have seen growing demand for this throughout 2025, and we expect it to become an even stronger priority in 2026 and beyond.

“Oftentimes, potential clients look for help to eliminate manual processes such as spreadsheet scheduling, outdated time tracking, and the disconnect between systems they use,” shares Joseph Cuellar, Enterprise Account Executive at Workforce.com. 

Ray Chan, Head of Customer Support at Workforce.com, adds, “What we have seen as the biggest trend for prospective clients looking into our system is platform consolidation. Many organizations still use separate systems for scheduling, timesheets, payroll, HR, ATS, and more. A solution that spans the entire employee lifecycle is a major attraction.”

The motivation is simple. Organizations want to stop switching between multiple platforms to complete basic tasks. Not only is this tedious, but it introduces errors and forces teams to spend additional time double-checking data that should flow automatically.

Third Space Brewing is one of many organizations that have seen the benefits of consolidating onto Workforce.com. “It is the ability to do everything under one roof and not have to import and export data out from separate pieces of software,” says John Wynne, Taproom GM at Third Space Brewing.

Scott Passolt, Third Space Brewing’s Controller, expands on this, saying, “We definitely saved time from not having to reconcile numbers between two different platforms all the time. Everything flows easily. If we know the timesheets are correct, we know payroll is correct. I have more confidence in the accuracy of the numbers. It has given us peace of mind because we are no longer worried about missing something when moving data between systems.”

Watch: How Third Space Brewing Tapped into Better Payroll and Workforce Management

As organizations look ahead to 2026, especially those operating large hourly workforces, the demand for a unified, all-in-one platform will only continue to grow.

“All-in-one products are the future of the industry, and we are fully committed to that vision,” Craig shares. “Having an integrated, all-in-one solution eliminates so many pain points for our customers, and it is no surprise that the industry is moving in that direction. Our product roadmap is laser-focused on eliminating the need for customers to juggle a host of different services and offerings.

Hourly work is evolving, especially around pay.

Hourly work is changing, and pay is becoming one of the clearest areas of transformation. In 2026, more hourly workers will expect faster, more flexible access to their earnings, rather than waiting for a traditional biweekly cycle.

We are already seeing strong demand for on-demand pay, along with greater clarity and transparency around how compensation is calculated. In response, employers are beginning to look for technology that can keep pace with modern work patterns and move beyond the rigid pay structures built decades ago.

This year, several states and localities introduced or strengthened pay transparency requirements, and similar movements are expected to continue into 2026. These changes reflect a broader shift in expectations: employees want easy, direct insight into how their pay works, and employers are increasingly required to provide it.

Hourly workers should not have to jump through hoops to understand or access their wages. The right technology can make this simple by giving them clear visibility into their pay, the factors that influence their net earnings, and how each calculation is made. As transparency and flexibility become standard expectations, having modern, employee-friendly pay tools will become essential for hourly teams.

Demand grows for automations that do the work, rather than just support it.

More teams will expect automations and built-in intelligence in the software they adopt. Technology has always aimed to reduce administrative workload, but in 2026, we will see organizations push beyond that. They will want automations that fully execute tasks, not just assist with them.

“Customers increasingly want tools that remove work, not just organize it,” Travis says. “They continue to seek hands-off scheduling, such as automatic shift building and demand-based scheduling. We are also seeing customers shift away from platforms that simply give them data. Instead, they want tools that make decisions and explain the reasoning behind them. And as compliance concerns rise, more organizations are adopting automated compliance interpretations as well.”

This shift is becoming more pronounced as many organizations operate with leaner teams. With fewer staff, they cannot afford tools that only support work. They need platforms that actively handle tasks and keep processes moving. In 2026, the demand for true hands-off automation will only grow stronger.

Industry Focus: Family Entertainment Centers (FEC)

Family entertainment centers (FECs) offer a clear snapshot of the challenges that hourly work businesses face today. FECs sit at the intersection of hospitality, retail, and events, all sectors with highly variable hourly staffing and tight compliance requirements. This makes them a strong indicator of the trends shaping HR and payroll across many other industries.

FECs deal with unpredictable demand swings driven by weather, school calendars, weekends, and special events. Their staff often work across multiple roles in a single week, sometimes in a single day. And because many employees are minors, managers must navigate some of the strictest labor rules in the country, with specific limits on scheduling, breaks, and total hours worked.

Navigating all of that makes technology essential. Bria Stuckey, the General Manager of Altitude Trampoline Park, explains how technology can help FECs overcome operational challenges. 

For Bria, compliance with minor labor laws is one of the most significant pressure points. She notes that the right system helps her avoid mistakes before they happen. “Most of my team is between 15 and 17, so we have to follow strict hour limits. Workforce.com helps me stay compliant with those labor laws. If a minor cannot be scheduled, it tells me and will not let me schedule them. I do not have to go back and fix mistakes. It keeps us compliant from the start.”

Beyond compliance, FEC operators also need tools that let them focus on their guests rather than administrative issues. Bria explains that when something goes wrong, like a missed break clock-in, she doesn’t need to stop what she’s doing or manually track down errors. The system gives her visibility into who is approaching or exceeding their allowed hours, so she can stay present on the floor rather than buried in corrections.

Just as importantly, many FECs rely on multiple disconnected systems—POS, scheduling, time tracking, HR, payroll—and the friction between those tools can cause errors and long administrative delays. Bria experienced this firsthand before consolidating. “With the other apps, we had to schedule in one system and fix timesheets in another. It was a whole thing,” she says. “With Workforce.com, I can do everything in one place. It saves time and lets me focus on people having fun.”

Watch: The Software Behind the Fun: How Workforce.com Powers Altitude Richardson


Bria’s story reflects a broader trend across the industry: FECs succeed when they streamline processes, improve compliance, and consolidate disconnected systems into a single operational hub. As organizations head into 2026, businesses with large hourly workforces will need technology that understands the realities of shift-based work and helps them manage complexity without adding more of it. 

2026 will widen the gap between businesses that adapt and those that do not. Businesses that will win are those bold enough to evolve and recognize that old systems cannot support new labor realities.

Success will not come from working harder. It will come from building workflows that anticipate issues, respond quickly, and keep hourly teams moving in the right direction. The organizations that choose to modernize now will be the ones setting the pace next year.

Ready to transform your business in 2026? Book a demo today. 

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Wage Transparency is Coming to Massachusetts: Is Your Business Ready?

Summary:

  • Starting October 29, 2025, Massachusetts employers with 25 or more employees must include salary ranges in job postings. 
  • Pay transparency laws ensure pay equity and fairness, but compliance can be a challenge without the right system. 
  • Workforce.com helps businesses stay compliant by centralizing pay data, standardizing job postings, and providing tools that simplify workforce reporting across locations.

Massachusetts has officially joined the growing list of states mandating pay transparency. Beginning October 29, 2025, employers with 25 or more employees must include salary ranges in job postings, provide them to applicants, and share them with current employees upon request.

Earlier in the year, beginning February 1, 2025, businesses with 100 or more employees that already file federal EEO-1 reports must also submit those reports to the Commonwealth.

Both measures fall under An Act Relative to Salary Range Transparency signed by Governor Healey on July 31, 2024. 

Also read: A Guide to State and Local Pay Transparency Laws [2025]

What the Wage Transparency Covers

The Wage Transparency Act in Massachusetts focuses on two key areas: pay range disclosure and EEO workforce reporting.  

Pay Range Disclosure Requirements

Starting October 29, 2025, employers with at least 25 employees must disclose pay ranges in job postings and must provide pay information upon request of current employees. The pay range refers to the annual or hourly wage range that an employer reasonably and in good faith expects to pay for such a position at that time. 

Employees and applicants have the right to receive the pay range when applying for a role, being promoted or transferred, or upon request for their current position. Employers are prohibited from retaliating against employees who exercise these rights.

Although the law’s disclosure requirement takes effect in 2025, employers can voluntarily begin complying earlier.

EEO Reporting Requirements

Beginning February 1, 2025, private employers with 100 or more employees that already submit an EEO-1 report to the federal government must also send their most recent report to the Massachusetts Secretary of the Commonwealth each year.

This requirement aims to improve statewide visibility into workforce diversity and pay equity, helping the state identify and address wage disparities across industries.

Practical Ways to Ensure Compliance

Pay transparency laws like Massachusetts’ Wage Transparency Act are changing how businesses handle compensation. While adapting to new regulations can feel complex, the right systems can turn compliance into an advantage. Workforce.com can help you do exactly that. Here are some of the ways: 

Standardize pay ranges in job postings

Every job posting should include a pay range, one that’s consistent with internal pay bands and defensible under the law. 

Workforce.com’s Applicant Tracking System (ATS) allows HR teams to add and display pay ranges directly in job postings, helping organizations comply with wage transparency requirements not only in Massachusetts but also in other states. 

Centralizing pay and job information

Workforce.com is an all-in-one system that houses scheduling, timekeeping, and payroll data in a single platform. With all pay and job information in one platform, HR and hiring teams have a single source of truth for wages across locations and roles. This makes it easier to verify pay range accuracy before posting job vacancies, respond to pay range request inquiries from current employees, and submit consistent payroll reports. 

Conduct regular pay audits

Pay transparency often goes hand in hand with pay equity. Regularly reviewing your compensation data helps ensure fairness and compliance.

Workforce.com provides reporting tools that let you analyze pay distribution across roles and locations, making it simple to track pay rates, identify discrepancies, and stay aligned with both state and federal reporting requirements.

Pay transparency laws are changing the way businesses talk about compensation. For employers, it’s an opportunity to build trust and demonstrate fairness, not just another compliance box to tick. 

With Workforce.com, businesses can manage pay ranges, job data, and workforce reports in one place, making it easier to stay consistent and confident as new laws take effect.

Discover how Workforce.com can help your business comply with labor laws, such as pay transparency rules, with an all-in-one platform. Book a call today.

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5 Common FEC Challenges + How Workforce.com Solves Them

  • Keeping young applicants interested, matching skills and demand to schedules, and staying on top of compliance requirements are three main areas for FECs. 
  • Workforce management software helps operators tackle these pain points by streamlining recruitment, onboarding, scheduling, and record-keeping.

Family entertainment centers (FECs) exist to provide guests with fun and memorable experiences. However, behind the scenes, operators face significant workforce challenges, including seasonal hiring surges, managing younger Gen Z staff, and navigating complex compliance regulations. 

Successful FECs are not just those with the most prominent attractions, most elaborate party packages, or most comprehensive membership programs. What sets successful FECs apart is how they use the right software solution to attract talent, optimize labor, and stay compliant. With clear dashboards and real-time insights, managers can make faster, smarter decisions that directly impact operations.

In a recent webinar, Workforce.com teamed up with ROLLER to unpack how technology can ease these workforce challenges and set FECs up for sustainable growth. 

Here, we have highlighted five ways workforce management software can help FECs run smoothly, engage their staff, and stay profitable. 

Streamlining recruitment

“The guest experience starts long before people actually walk through the doors. It starts when you’re choosing your staff,” says Travis Kohlmeyer, General Manager at Workforce.com US. 

Whether you run a single-location center or manage multiple venues, staffing challenges are remarkably similar. Labor is one of the most significant expenses in an FEC, and managers spend a considerable amount of time recruiting and managing staff. 

This is where workforce management technology can make all the difference. The right tools help FECs establish a fast, simple, and user-friendly recruitment process that today’s applicants expect. 

“Younger generations expect speed. If you’re taking too long, you’re probably going to lose them to a faster employer,” Travis explains. Having mobile-first applications and quick automated follow-ups helps ensure strong applicants don’t drop out midway through the process.

Technology also streamlines applicant screening. AI-powered forms can highlight red flags and surface good fits early on by asking make-or-break questions upfront, such as, “Are you available to work weekends?” or “Do you have reliable transportation?”

But beyond screening, the right software can also culture an applicant’s motivation and availability. “You want to give them the opportunity to say what works best for them and make sure that what’s aligned with what the business needs is key,” Travis says.

For FECs, this means capturing information such as which shift works best for the applicant, the number of hours per week they want to work, and which days they’re most available. Gathering this information upfront not only improves hiring decisions but also feeds directly into scheduling down the line.Workforce.com’s applicant tracking system enables FECs to attract candidates more quickly, filter for cultural and operational fit, and transition from onboarding to scheduling with minimal administrative effort.

Going mobile for onboarding

Onboarding is not just about filing out new hire paperwork. It’s about making sure new employees feel equipped from day one. 

“The goal of onboarding is not just to get people hired. You want them to be ready, excited, and confident when they’re coming in. And dealing with mountains of paperwork can really take away from that experience,” Travis says. 

A seamless onboarding process can make or break it for FECs, and the right technology is key.

“It’s important to make onboarding mobile-friendly. Kids are already on their phones and a lot of them don’t even have laptops. So it’s important to make sure that they can access it on their phones.” Travis explains. “Think bite-sized pieces of onboarding information, digital-first formats, QR codes, welcome videos, and key rules and procedures. Being able to access that on their phone is a good way to start off.”

Workforce.com has a paperless onboarding software with real-time tracking, so managers can see exactly where each new hire is in the process. New staff can complete forms, submit paperwork, and input personal information before their first day, all from their mobile device. With these self-service tools, the admin is out of the way early, and operators can focus on getting staff up and running from day one. 

Download Free Template: Onboarding Checklist

Scheduling smarter

Scheduling is one of the most complex and time-consuming tasks for FEC operators. Workforce management software can simplify the process and help managers build fair, compliant, and cost-effective schedules.

Advance scheduling
With the employee scheduling system, creating shifts in advance becomes so much easier. 

“We definitely recommend building schedules two weeks out to reduce errors,” Travis says. “Doing so will help minimize last-minute changes, improve attendance reliability, and allow staff members to communicate if changes are needed. In plenty of US cities, things like Fair Workweek or predictability pay come in, where if you change somebody’s schedule within too short a time span, you actually get fined.”

Schedule templates

Utilizing schedule templates is another way the right software can save time and reduce errors.

“Managers don’t have to reinvent the wheel every week or month, depending on schedule length,” Travis advises. “Use templates for baseline staff, which can be done in minutes. This ensures consistency, avoids coverage gaps, improves compliance, and helps managers build schedules more easily.”

Managing no-shows with shift swapping

With the right system, staff can trade shifts directly, cutting down on back-and-forth and saving managers valuable time.

“Enable self-service shift swaps. If you can, let staff swap shifts themselves, but always have manager approval. It reduces time managers spend resolving conflicts, and increases accountability, especially for young staff. They can say, ‘Hey, I can’t work in ten days. It’s on me to figure out a swap,’” Travis explains.

Efficient swaps reduce the need for last-minute overtime, which can quickly inflate labor costs. This kind of flexibility is especially valuable for FECs that rely heavily on young and part-time workers. It keeps operations smooth while giving employees the autonomy they expect.

Scheduling based on skills and demand

Aside from ensuring the correct number of employees are present in every shift, it’s also crucial to have a balance of skill or seniority level in every schedule. 

“With casual young staff, you don’t want too many juniors in one shift,” Travis explains. “You always want to have managers or supervisors designated, plus one to two experienced staff, depending on how many people are scheduled. The right system helps ensure that this balance is maintained.” 

And that balance is what guests feel on the floor. Customers don’t think about scheduling decisions. They just expect the arcade machines to run smoothly, the mini golf course to flow smoothly, and kiosks to move quickly. Getting the mix of supervisors, experienced staff, and juniors right translates directly into a smoother customer experience.

Another key factor in employee scheduling for FECs is demand. Managers must also take a look at key indicators such as sales, foot traffic, party bookings, and even how inventory management impacts areas like concessions or redemption counters to determine the right staffing level for a shift.

“If you can integrate your point-of-sale (POS) system, like ROLLER, into Workforce.com, you can forecast wage percent of revenue, a stat you can act on before labor is deployed,” Travis says. 

With scheduling features designed for frontline industries like FECs, Workforce.com makes it easier to plan ahead, meet compliance obligations, and ensure profitability.

Ensuring compliance

Compliance is especially complex for FECs, given the mix of youth labor laws and safety requirements.

“First off, youth labor laws are easy to miss. You need to know applicable labor laws and automate compliance, Travis says. “For example, in Chicago, minors under 18 can only work three hours on a school day and eight hours on a non-school day. During the school year, they can only work until 7 or 8 PM. So if school ends at 5 PM, you can’t even schedule them for more than two hours. If you don’t track this, it’s going to be a massive hit.” 

That’s why safeguards should be built directly into scheduling systems, preventing managers from unconsciously breaching labor limits.

Also read: Child Labor Laws by State + Federal 

Compliance also extends to staff qualifications. “It’s important to make sure that things like first aid, CPR, food handling, and lifeguard permits are lodged into the system with reminders and expiration dates,” Travis explains. Keeping certifications current not only protects guests but also shields operators from liability.

Digital record-keeping is another game-changer. “If there’s a safety incident, you don’t want to be digging through filing cabinets,” Travis says. “Having data online means alerts, updates, and easy audit readiness.”

Keeping qualifications up to date doesn’t just prevent fines. It ensures a safer environment, which is at the heart of the customer experience.

Future-proofing your workforce

With the right technology, FECs can do more than manage staff day-to-day. They can adapt quickly to generational shifts and emerging trends.

Today’s frontline workforce in FECs is primarily composed of young people. Efficiency and mobile-saviness are non-negotiables for this generation. Beyond clear rules, they expect intuitive systems that allow them to communicate with teammates, request time off, view employment details, and check schedules directly from their phones.

Having the right platform in place helps operators adapt to these expectations and build a workplace that younger employees actually want to be part of.

Technology is also about looking ahead. With AI becoming more than just a buzzword, truly effective workforce management systems will integrate smart tools, from predictive scheduling to automated compliance checks, to help operators stay competitive in an industry that never stands still. In fact, Workforce.com has been applying AI for many years, even before it became the hype and dominated headlines.  

Also read: What to Look for in Payroll Software (Especially for Hourly Teams)

Why FECs choose Workforce.com

Family entertainment centers face unique operational challenges. Workforce.com is built with these realities in mind. It’s an all-in-one platform that brings together hiring, onboarding, scheduling, compliance, and payroll in one place, allowing operators to spend less time on administration and more time focusing on growth.Curious how it works in practice? Book a demo with our team to see how Workforce.com helps FECs run better every day.

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What to Look for in Payroll Software (Especially for Hourly Teams)

  • Payroll is a process involved in calculating wages, applying deductions, and distributing pay to employees. Payroll for hourly teams can be more complex because of variable schedules and multiple pay rates.  
  • Payroll can be simplified with payroll software. But it can be tricky to find the best one. 
  • Payroll software can streamline the process, provided it has the functionality to ensure the accuracy of wage information and calculations. 

Payroll is one of the most critical and complex parts of running a business. At its core, it’s all about calculating employee wages, applying deductions, and issuing payments. But behind every paycheck is a complex system of moving parts, from tracking hours to ensuring compliance with tax and labor laws. 

For many business owners, especially those with hourly staff, payroll can become a significant pain point. Chasing down timesheets, calculating overtime, applying the correct pay rates, and reconciling records is very time-consuming and can result in significant amount of hours spent on administrative tasks. 

So, what exactly is payroll? And what should organizations look for in software to help them run payroll smoothly, especially if you’re managing hourly teams?

What is payroll?

Payroll is the process a business follows to pay its employees accurately and on time. It involves several key steps: calculating gross wages, withholding the correct amount of taxes, applying deductions such as garnishments or benefits, and issuing the final pay. 

But payroll doesn’t start and end with just cutting checks. Before payday, it requires pulling data from onboarding, time and attendance systems, and any applicable leave balances. After wages are finalized, employers must remit payroll taxes and file the necessary reports.

 In short, payroll is where everything comes together. More than a back-office task, it’s a core business function that directly impacts employee satisfaction and trust.

What does payroll mean for hourly teams?

Payroll is already a complex process, but it’s even more challenging for hourly teams. 

Unlike salaried payroll, which tends to stay consistent from cycle to cycle, hourly payroll is filled with moving parts. Pay can vary based on scheduled hours, roles worked, locations assigned, and local labor laws. These variables can drastically affect how gross pay, taxes, and deductions are calculated.

Take Dave, for example. He works at a restaurant where he’s qualified for multiple roles. Some days, he’s a server; other days, he’s a bartender—each with a different pay rate. Additionally, he may be assigned to various locations, each with its own wage rules and tax rates. These variations make processing payroll more complex. Now multiply that across 100 employees, and it’s easy to see why hourly payroll needs more than just a basic system.

It’s not just calculations, either. Employers must also stay up-to-date with state-specific pay frequency requirements. For instance, in Virginia, salaried employees must be paid at least monthly, while hourly workers must be paid at least twice a month or every other week. These rules vary across jurisdictions and can’t be ignored. 

For teams with shift-based staff, payroll isn’t a “set it and forget it” task. Automation helps, but only if the software is built to handle the unique needs of frontline and hourly operations from end to end. 

TL;DR: Payroll for hourly teams is more complex due to variable hours, multiple pay rates, shifting locations, and evolving labor laws. Getting it right takes the right tools. 

What is payroll software?

Payroll software is a tool that automates the calculation and processing of employee wages and salaries. It utilizes employee data, including hours worked, pay rates, and leave balances, to calculate pay, apply deductions, and issue payments in accordance with company policies and labor laws. It also generates pay stubs that provide employees with a clear breakdown of their earnings, taxes, and other adjustments. 

Payroll software’s primary purpose is to calculate and process employee wages using employee information and in accordance with labor laws and company policies. It also takes into account any adjustments based on leaves, holidays, and bonuses. After calculations, payroll is distributed to employees. Payroll systems often support direct deposits, sending wages straight to an employee’s bank account. Self-service access also lets employees update bank account details securely.

Payroll systems also help genrate pay stubs or payslips, which are documents that provide a breakdown of how pay was calculated.  

Payroll software can be standalone, which means that it’s solely designed to calculate pay. If it’s a standalone product, you must provide the information and data it needs to calculate employee pay.

There are different types of payroll software:

  • Standalone payroll software focuses solely on calculating and distributing pay. Necessary data, such as hours worked and overtime, must be manually input for each pay run. 
  • On-premise payroll software is installed on a company’s local servers. While this offers control over data, it typically requires a significant amount of IT infrastructure and ongoing maintenance. 
  • Cloud-based payroll software is hosted online and accessible from anywhere. It usually offers automatic updates, easier scalability, and less overhead for IT teams. In addition, it is often referred to as online payroll solutions because it allows you to process pay from anywhere with internet access.

Some payroll software is part of a larger human resources platform that includes tools for time and attendance, scheduling, and workforce management. In this setup, payroll pulls real-time data from these modules, which reduces manual entry, improves accuracy, and saves time.

What to look for in payroll software especially for hourly teams

With so many payroll providers on the market, it can be overwhelming to choose the right one. 

While most software promises to simplify payroll, not all of them are built to handle the business needs of hourly or shift-based teams. 

Here are the most essential features to look for in payroll software and questions to ask as you evaluate your options.

Ease of use

Adopting any new software has a learning curve, but it should be user-friendly enough to allow users to get up and running faster. So, what makes payroll software user-friendly? 

A good payroll system should be easy to navigate, even for non-technical users. While some learning curve is expected, it should help your team get up and running quickly without constant IT support. 

Key features to look for:

  • Accessible across devices: The software should function consistently on both desktop and mobile devices.
  • Intuitive design: A clean, user-friendly interface encourages adoption.
  • Minimal training required: Managers and admins should be able to handle payroll tasks without frustration or delay.

Even the most powerful system won’t be effective if your team doesn’t want to use it. 

Accurate wage and tax calculations

Hourly payroll is complex. Your payroll software should have safeguards that ensure every pay run is accurate, no matter how many variables are in play. 

Ask these questions: 

  • Does it support multiple pay rates and roles? 
  • Can it handle overtime, bonuses, and tips accurately? 
  • How are time and attendance data synced, automatically or manually? 
  • Does it manage federal, state, and local tax withholdings? 
  • How does the platform help minimize payroll errors? 

Accuracy is more than automation. It’s about controls and checks that fit your business.

Time tracking integration

Payroll accuracy starts with accurate time tracking. Choose a solution that integrates directly with your time and attendance tools or, even better, one where these tools are built into the same platform. 

Benefits: 

  • No double entry or data transfer errors
  • Real-time syncing of hours worked
  • Easier management of breaks, PTO, and shift differentials

Reporting and audit support

Good payroll software doesn’t stop at just wage calculations. it also helps centralize and organize your payroll data to make reporting, audits, and decision-making much easier.

Look for:

  • Built-in reports for federal and state requirements
  • Custom report builders for internal insights
  • Central access to payroll history and data

Whether you’re preparing internal summaries or government forms, payroll reporting tools should let you filter and export the data you need easily.

Customization and Flexibility

Most payroll systems typically come with default settings, but a good one also adapts to your specific requirements. This is especially important for those with more dynamic needs, such as frontline teams and hourly workers. 

Here are some questions to ask:

  • Can you set rules for multiple roles, rates, and locations? 
  • Can you configure custom pay periods or alerts for overtime and missed breaks?
  • Can the system handle tipped wages and industry-specific rules?
  • Can you automate break compliance and ensure that required penalty pay is issued if rest or meal breaks are missed?

Employee self-service

Empower your staff with access to their payroll information. A self-service portal reduces admin workload and builds transparency. 

Employees should be able to: 

  • View pay stubs, W-4s, and timesheets
  • Update personal and banking information
  • Track PTO balances and request time off
  • View schedules and shift history

Built-in compliance tools

Payroll software should support federal, state, and local tax compliance, while also helping you meet wage laws, recordkeeping requirements, and audit readiness.

The system should: 

  • Alert you to rule violations
  • Maintain digital records for audits
  • Help you stay up to date with changing labor laws

Reliable customer support

Payroll issues can’t wait. Select a provider with a knowledgeable and accessible support team, particularly during implementation and your initial pay runs.

Why Workforce.com’s payroll software is the best choice for hourly and shift-based teams

Workforce.com is a full-service payroll platform built for hourly, shift-based, and frontline workforces. It’s more than just a payroll calculator. It’s a complete workforce management suite designed to automate, simplify, and safeguard every step of the employee lifecycle, from onboarding new hires to payday.

Here’s why it stands out: 

  • Accurate pay for complex teams: Handles multiple rates, roles, and locations with ease
  • Real-time time tracking integration: Built-in time and attendance means no data re-entry
  • Flexible compliance tools: Designed to help you follow federal and state wage laws with configurable pay rules and alerts for your locations
  • Employee self-service: Mobile-friendly tools for staff to manage pay, schedules, and more
  • End-to-end visibility: See everything from scheduling to pay in one system

Workforce.com serves industries such as hospitality, healthcare, and more, helping to reduce payroll errors, save time, and ensure compliance. Book a call today to see how Workforce.com can simplify your payroll process.

FAQs about Payroll and Payroll Software

What is payroll in simpler terms? 

Payroll is the process of paying employees their wages and salaries on a regular basis. It involves calculating wages, withholding taxes, and ensuring compliance with legal requirements. 

How does payroll software work? 

Payroll software automates tasks such as wage calculations, tax withholdings, direct deposits, and reporting. It reduces manual work and helps prevent errors. 

Why is payroll more complicated for hourly workers? 

Hourly payroll often involves variable shifts, multiple pay rates, overtime, and tip reporting. These moving parts can make payroll more complex and more challenging to manage manually.

What’s the best payroll solution for hourly teams? 

The best payroll solution for hourly teams or shift-based workers is one that’s in the same ecosystem as time tracking, scheduling, and onboarding. It should support multiple pay rates, variable schedules, overtime, tip management, and compliance. An employee self-service functionality is also a must for hourly workforces. 

Can payroll software help with taxes? 

Yes. Most payroll software automatically calculates and applies federal and state tax rates, helping ensure tax compliance. Many also generate tax forms and reports to support timely and accurate filing.

What are other ways to process payroll aside from payroll software? 

Some companies opt for in-house payroll, where they use manual processes like spreadsheets or accounting tools. Others outsource payroll entirely to accountants or payroll service providers who manage the process and handle tax filings on their behalf.

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7 Practical Tips for Paying Payroll Taxes

Summary

  • Payroll taxes are just one part of running payroll, but it’s a significant part. It’s a year-round responsibility that involves calculating withholdings, filing forms, and meeting deposit deadlines.
  • Even small mistakes can lead to penalties, such as missing a deadline or misclassifying wages.
  • A few smart practices and the right payroll software can go a long way.

Payroll taxes are just one part of running payroll, but they’re a significant part. While payroll processing covers everything from tracking hours to issuing paychecks, the tax side alone spans multiple steps before, during, and after payday. You need to set up the correct withholdings, calculate deductions correctly for each run, file required forms, and meet deposit deadlines. 

Paying payroll taxes is more than just sending contributions to the IRS every now and then. Payroll tax obligations can be extremely complex, but a few practical tips can help business owners stay compliant and avoid any surprises.

Here are some best practices for paying payroll taxes: 

1. Know what taxes you’re actually responsible for

There are different types of payroll taxes that employers must withhold and process from employee paychecks, including: 

  • Social Security and Medicare taxes under the Federal Insurance Contributions Act (FICA)
  • Federal Unemployment Tax Act (FUTA) contributions – fund unemployment benefits for eligible workers
  • State and local taxes
  • Employer-side contributions – many of these taxes have an employer’s share, meaning you need to match what the employee pays (as with Social Security and Medicare).

Some of these taxes are withheld as tax deductions from employee wages, while others are paid directly by the employer.

Most of these are based on employee wages, so it’s important to understand which taxes apply, how they’re calculated, and what portion your business is responsible for. Before anything else, you need to know what taxes you need to collect and remit, both on behalf of your employees and from your business directly.

For federal income tax withholding, that process starts with Form W-4, which each employee fills out when they’re hired. It tells you how much tax to withhold based on filing status, dependents, and any additional withholding requests. Keeping this information up to date is key to avoiding under- or over-withholding. 

Also read: What are different payroll deductions? Taxes, benefits, and more

2. Track hours and wages accurately

Accurate time tracking is the foundation of tax compliance, especially when you’re dealing with hourly employees. Every hour worked directly affects how much you withhold for taxes and how much you need to report. These hours contribute to each employee’s taxable wages or the portion of their earnings that payroll taxes are calculated on.

Small errors throw off tax calculations and lead to issues. Ensure you have a system that accurately captures: 

  • Clock-ins and clock-outs
  • Breaks and unpaid meal periods
  • Overtime
  • Shift differentials or special rates

3. Register with federal, state, and local tax agencies

You need to be registered with the right government agencies before you can pay or file for anything. You can start with:

  • Employee Identification Number (EIN) – through the IRS
  • State employer registration: Usually done through the state’s Department of Revenue or Labor
  • Local registration: Required in some cities for payroll taxes or occupational licenses

If you employ workers in multiple states or eventually open up new locations, you would most likely need to register for each one separately. You need to do this first and foremost, as registration can take time to process. 

4. Know your deposit schedule 

Payroll taxes are deposited regularly throughout the year. The scheduled deadline depends on how much payroll tax you reported in the past. 

Under IRS rules, your deposit schedule is based on a lookback period, which is a 12-month window that determines your tax liability. 

For most employers who file Form 941, the lookback period covers the 12 months from July 1 two years ago through June 30 of last year.

Here’s an example: 

For 2025 deposit schedules, the lookback period is July 1, 2023 to June 30, 2024. The deposit will be:

  • Monthly: If you reported $50,000 or less in taxes, you must deposit by the 15th of the following month
  • Semiweekly: If you reported more than $50,000, you must deposit depending on what day you pay your employees. So if your payday falls on:
    • Wednesday, Thursday, or Friday, the deposit is due by the following Wednesday.
    • Saturday, Sunday, Monday, or Tuesday, the deposit is due by the following Friday. 

If you filed Form 944 in either of the previous two years or you’re filing it in the current year, the lookback period is different. It would be the entire calendar year two years before the deposit year. For instance, the lookback period is calendar year 2023 for 2025 deposits. 

It’s also important to take note of the following exceptions:

  • If your total quarterly tax liability is under $2500, you can pay the tax with Form 941 instead of making regular deposits. 
  • If you accumulate $100,000 or more in a single day, you must deposit the next business day and will become a semiweekly depositor moving forward.

5. Adhere to tax filing deadlines

Depositing taxes is only half of the payroll tax equation. The other equally important part is filing forms that officially report what you withheld, what you paid, and when. Filing forms on time is as crucial as paying taxes themselves. It’s important to note that you could be subject to penalties for late filings, even if you already paid what you owe. 

Here are key forms employers must know:

Form 941: Employer Quarterly Federal Tax Return

  • Reports federal income tax withheld from employees, plus Social Security and Medicare taxes
  • Filed four times a year (end of April, July, October, and January)
  • The most common form for employers with hourly teams

Form 940: Federal Unemployment Tax (FUTA) Tax Return

  • Filed annually
  • Reports how much you owe for federal unemployment taxes
  • Required even if you qualify for the 0.6% reduced FUTA rate

Form W-2: Wage and Tax Statement

  • Sent to each employee every January
  • Summarizes their total earnings and withholdings for the year
  • Must also send Form W-3  to the Social Security Administration

Form 944: Annual Federal Tax Return (for smaller employers)

  • Some small businesses file Form 944 instead of 941 if their total annual liability is under $1,000
  • Filed once a year, not quarterly
  • The IRS must notify you in writing if you’re eligible to use this form.

Form 1099-NEC: Nonemployee Compensation

  • If you paid contractors $600 or more during the year
  • Must be filed by January 31 and submitted to the IRS and contractors
  • Not a payroll tax form per se, but still part of year-end wage reporting

Meanwhile, every state with income or unemployment tax has its own set of required forms, which is usually a mix of: 

  • Quarterly state withholding returns
  • Unemployment insurance wage reports
  • Annual reconciliation forms
  • Copies of W-2s or 1099s

Deadlines and formats vary. If you operate in multiple locations, it’s crucial to track and stay on top of these tax due dates aside from federal requirements.

6. Don’t overlook state and local tax rules 

Once you’ve figured out your federal taxes, you’ll also need to calculate and pay state-level obligations, such as state unemployment tax, which varies by location and employer history. State and local rules are equally crucial as federal payroll taxes, especially for hourly or multi-state teams. 

Here are some examples:

  • In Massachusetts, new non-construction employers pay 2.13% in SUI rate, applied to the first $15,000 in wages per employee. If you’re in construction, the default rate is 5.45%, also applied to the first $15,000 in wages per employee. 
  • New York imposes the MCTMT (Metropolitan Commuter Transportation Mobility Tax). Suppose your total quarterly payroll for employees working in the MCTD (Metropolitan Commuter Transportation District,  including NYC, Long Island, and parts of the Hudson Valley) exceeds $312,500. In that case, you’re required to pay an additional payroll tax ranging from 0.11% to 0.60%, depending on your total payroll.
  • Reciprocity agreements can affect income tax withholding. If an employee lives in one state but works in another, a reciprocity agreement may let you withhold income tax only for the employee’s home state.

Employers must be proactive to stay up-to-date with these rules. It’s best practice to review SUI notices every year, monitor local tax obligations, and understand residency versus work state rules. 

7. Automate where you can

Running payroll manually is doable, but it’s very risky, especially when your team grows. You can face audits and fines due to mistakes in tax withholdings, errors in tax forms, or late payments. 

If your workforce clocks in and out, works variable shifts, earns multiple pay rates, or moves across locations, automation helps prevent errors that are otherwise easy to miss. 

Use payroll software that syncs directly with your time and attendance tracking and scheduling tools so that:

  • Worked hours, breaks, and overtime flow automatically into payroll
  • Pay rates, roles, and job codes are applied consistently
  • There’s no need for manual re-entry or patching together spreadsheets

Think of automation as both a time-saver and compliance safeguard. The more complex your operations, the more valuable automation becomes. Payroll software helps reduce the risk of costly mistakes, from inaccurate hours to missed employment tax filings.

Stay on top of payroll and tax calculations with Workforce.com

Workforce.com connects scheduling, time tracking, and payroll, so every hour worked, break taken, and pay rate used is accurately calculated. Learn more about payroll with Workforce.com. Book a demo today.

FAQ: Payroll Taxes for Employers

Do I have to pay payroll taxes if I only hire part-time employees?

Yes. Even if your employees work part-time, you’re still responsible for withholding and remitting payroll taxes. This includes Social Security tax, Medicare tax, federal and state income taxes (if applicable), and unemployment taxes.

Do I need to pay payroll taxes for independent contractors?

You don’t withhold income tax or pay Social Security, Medicare, or unemployment taxes for independent contractors or self-employed individuals. Instead, they’re responsible for handling their own taxes and typically receive a Form 1099-NEC, not a W-2.

What happens if I miss a payroll tax deposit deadline?

Missing a deposit or filing deadline can result in late fees, penalties, and interest from the IRS or your state agency. In some cases, repeat violations can trigger audits or legal action. Automating your payroll tax calculations can help avoid these risks.

What is EFTPS and do I need it for payroll taxes?

Yes, the Electronic Federal Tax Payment System (EFTPS) is the IRS’s official platform for submitting federal tax payments, including payroll taxes. Employers are required to use EFTPS to deposit withheld income tax, Social Security, and Medicare taxes.

Do payroll taxes help fund unemployment benefits?

Yes. Payroll taxes like FUTA (federal) and SUI (state) are used to fund unemployment benefits for eligible workers who lose their jobs. These are typically employer-paid and are required in almost every state.

What is the Additional Medicare Tax, and who pays it?

The Additional Medicare Tax is a 0.9% tax on wages over $200,000 per year, paid only by employees. Employers are required to begin withholding it once an individual employee’s wages exceed that threshold — no employer match is required.

Do I need to e-file payroll tax forms?

In most cases, yes. Employers are generally required or encouraged to electronically file payroll tax returns like Forms 941 and 940 directly with the IRS. Wage reporting forms, such as Form W-2, are filed electronically with the Social Security Administration (SSA). E-filing helps ensure timely processing and reduces errors.

How does payroll software help calculate payroll taxes?

Payroll software can handle the most complex parts, such as calculating withholdings and applying the correct tax rates. Workforce.com helps you stay accurate and compliant by syncing hours, pay rates, and locations directly into your payroll calculations, so taxes are easier to manage and less prone to error.

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Tax Resolution Excellence: Workforce.com vs. Industry Standard

Case Study 1: Mid-Quarter Provider Transition

Challenge: Customer switched to Workforce.com mid-quarter with incomplete returns from previous provider.

Industry Standard: Most providers would require the client to resolve issues with their previous provider or charge significant fees for manual corrections.

Workforce.com Approach: Submitted manual corrections free of charge, saving the client time, stress, and potential penalties.

Implications of Workforce.com Approach: Without Workforce.com’s intervention, the employer would face potential IRS penalties for incomplete filings, interest on unpaid taxes, and compliance violations that could trigger audits. The employer would also need to divert staff time to resolve the issue or pay their previous provider additional fees. Workforce.com eliminated these financial risks and administrative burdens completely.

Case Study 2: IRS EIN Merger Complication

Challenge: IRS automatically merged a customer’s two EINs, creating filing discrepancies.

Industry Standard: Typical providers might identify the issue but expect the client to resolve it directly with the IRS.

Workforce.com Approach: Invested hours on calls with the IRS to investigate the root cause, then manually reconciled transcripts with submissions to ensure compliance.

Implications of Workforce.com Approach: The standard approach would leave the employer facing potential IRS notices, penalties for apparent underpayment of taxes, and the need to hire specialized tax consultants to resolve the issue. These discrepancies could lead to incorrect tax assessments costing thousands of dollars and jeopardizing the company’s tax compliance record. By taking ownership of this complex problem, Workforce.com saved the client approximately 15-20 hours of specialized accounting work (valued at $3,000-5,000) and prevented potential penalties that could have exceeded $10,000.

Case Study 3: Late Discovery of Missing Payroll Data

Challenge: Client forgot to share January payruns during February implementation, only revealing this two weeks before federal filing deadlines the following January.

Industry Standard: Most providers would either charge rush fees, delay corrections until after deadlines, or require the client to file amendments themselves.

Workforce.com Approach: Rapidly produced corrected W-2s and completed all federal and state filings within just three business days.

Implications of Workforce.com Approach: The standard industry response would likely result in missed filing deadlines, triggering automatic IRS penalties (starting at $50 per W-2 and increasing to $260 for extended delays), plus separate state penalties. Employees would receive incorrect W-2s, potentially delaying their personal tax filings or requiring them to file amendments. The employer would face not only financial penalties but also diminished employee trust. Workforce.com’s rapid response prevented additional penalties and preserved the employer’s reputation with employees. Additionally, this quick resolution allowed employees to file their personal taxes on time without complications.

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Biweekly vs. Semi-monthly Pay: What’s the best fit for hourly teams?

Summary

  • Biweekly and semi-monthly pay may sound similar, but they differ in structure, timing, and how they impact payroll processing.
  • Several states have pay frequency laws that specify how often employers must pay their employees.
  • Payroll software makes it easy to manage multiple pay frequencies, assign them by employee type, and automate overtime and pay period calculations.

Biweekly and semi-monthly are standard popular pay frequency options. While they sound similar, they work very differently. Both involve employees receiving payment twice a month, most of the time, but the structure behind them can significantly impact payroll processing. 

So, which one is right for your team? Let’s break it down.

What is semi-monthly payroll?

Semi-monthly payroll means employees are paid twice a month on specific dates, typically the 15th and last day of the month or the 1st and 15th of each month. This results in 24 pay periods in a year. 

Unlike weekly or biweekly pay schedules, semi-monthly pay dates stay fixed by the date, not the day of the week. That means paydays fall on different weekdays each month and, in some cases, on weekends or holidays, potentially delaying direct deposits if not managed carefully. In many states, employers are still required to issue pay on or before the scheduled payday, even if banks are closed, to stay compliant with payday laws. 

What is biweekly payroll? 

Biweekly payroll means employees are paid every other week on the same specific day, such as the second Friday of each month. This leads to 26 pay periods per year, with two months each year containing three paychecks instead of two. 

Unlike semi-monthly payroll, biweekly follows the same weekday, not the same date, which provides more consistency for employees and simplifies time tracking. 

Biweekly pay is paying employees every other week on the same day (e.g., every other Friday), resulting in a total of 26 paychecks per year. Unlike semi-monthly pay, biweekly payroll means employees are paid on the same day every other week, not on a set date. 

Semi-monthly vs biweekly pay: Key differences

Biweekly PaySemi-monthly Pay
Pay periods/year2624
Pay schedule Fixed day, every two weeks (e.g., every Friday)Fixed dates (e.g., every 15th and 30th)
Payroll taxes and withholdingsMore frequent withholdingSlightly higher withholding amounts per paycheck
Direct deposits and bank timingAlways the same weekdayMay fall on weekends/holidays
Payroll and HR Admin workloadMore runs (26/year)Fewer runs (24/year), but may need adjustments
Overtime trackingEvery 2 weeks, aligns with 40-hour weeksMay split workweeks

Which payroll schedule is better for hourly employees?

To know which is the better payroll schedule, you need to understand how each of them affects your payroll management, particularly overtime pay and shift differentials. You need to figure out which pay schedule makes it easy for you to manage. 

If you manage hourly workers, your choice of payroll frequency directly impacts how you track hours, calculate overtime, or account for shift differentials.

How pay frequency schedules affect payroll workflows for hourly teams

A bi-weekly payroll schedule aligns with a standard 40-hour workweek, which makes it easier to calculate overtime. Since each pay period covers exactly 14 days, it’s predictable and easier to reconcile against time and attendance records. 

Meanwhile, a semi-monthly pay schedule may cut across weeks. For example, a pay period might start on a Wednesday and end two Thursdays later, which can result in a single workweek being split between two pay periods. This can result in challenges with overtime calculations and increases the risks of errors, especially when you don’t have an airtight payroll system.

Other pay inputs: Tips, shift differentials, and bonuses

Consider other sources of compensation, too. Businesses relying on hourly teams, such as restaurants, hotels, retail, and healthcare, may have complex pay inputs such as:

  • Shift differentials 
  • Tip pooling 
  • Bonuses and commissions

So, which should you choose?

Suppose you run a shift-based operation or manage hourly employees. In that case, bi-weekly payroll is usually the better choice because it’s easier to calculate overtime under FLSA rules and align with weekly timesheets. That said, syncing hours with pay has fewer risks of errors. 

Meanwhile, semi-monthly payments typically work better for salaried employees or companies with more fixed or consistent payroll patterns than for hourly staff. While it’s still possible to apply a semi-monthly arrangement to hourly teams, it can introduce difficulties with payroll calculations unless you really have a strong payroll system in place.

Do payroll laws affect pay schedules?

Yes. In many states, pay frequency is regulated by law, which means business owners can’t always choose freely between biweekly, semi-monthly, or monthly pay. 

Some states let employers decide how often to pay their staff, while others set a minimum required frequency (like once or twice a month). In some cases, rules vary by industry, employee type, or business size. 

Here are a few examples:

  • Connecticut: Employers must pay employees no later than eight days after the pay period ends. Employers can apply for permission to use a less frequent schedule but must still pay at least monthly. 
  • Hawaii: Employers must pay employees at least semi-monthly, with paydays no more than 15 days apart. Employees can opt for monthly pay via a formal election process. 
  • Louisiana: In industries such as manufacturing, oil drilling, mining, and public service that employ 10 or more staff, employers must pay wages at least twice a month, ideally spaced about two weeks apart. 

Pay frequency rules vary, so it’s best to check with your state or local government to see if any prevailing pay frequency rules apply to you. This is especially crucial if you operate in different states and localities. 

How payroll software makes pay frequencies easier to manage

The right payroll system can make even the most complex pay schedules feel simple, whether you choose biweekly, semi-monthly, or a mix of both. For teams with hourly staff, multi-location operations, or varying employment types, automation is key. 

Here’s how Workforce.com’s payroll software helps:

Assign multiple pay frequencies to different employees 

There are cases when not all employees in a company are on the same pay schedule. With Workforce.com, you can assign different pay frequencies per worker or department, which helps streamline and automate the process when you have a team with various classifications and certain types of employee roles.

Automate overtime, pay rates, and shift differentials

Workforce.com automatically calculates overtime based on actual workweeks, no matter what pay frequency you use. It also accounts for multiple pay rates, shift differentials, premiums, and other forms of variable compensation. That way, you avoid manual edits or reworks, and it makes payroll easier to process, especially for hourly employees.  

Integrate time tracking and scheduling directly into payroll

With Workforce.com, you no longer have to worry about manually matching hours to pay periods. Time tracking, scheduling, and payroll all function in a single system, which means that employee work hours are easily calculated into wages and that you can see labor costs while creating shifts.

Give employees visibility and control

Employees must have visibility into how much pay they will receive on payday, as well as what factors contribute to their payroll calculations. With a built-in employee self-service portal and mobile app, your staff can: 

  • See upcoming shifts and schedules
  • View upcoming pay dates
  • Update their bank account details
  • See deductions
  • Access pay stubs

Whether you decide to pay biweekly, semi-monthly, or go for another pay schedule, Workforce.com equips you to run payroll without a hitch with built-in time tracking, overtime automation, and the flexibility to manage multiple pay schedules.

Want to see how Workforce.com works for your business? Book a demo.

Additional FAQs about pay frequencies

Are there other pay frequencies besides biweekly and semi-monthly?

Yes. Other pay frequencies include:

  • Weekly: Employees are paid once a week (typically 52 paychecks/year)
  • Monthly: Employees are paid once a month (12 paychecks/year)

Some states restrict or discourage monthly pay for hourly workers due to long gaps between paydays. 

Can employers change pay frequencies?

Yes, but you must provide notice to employees (often in writing) and ensure the change complies with state labor laws.

What happens in a month with three biweekly paydays?

Because a biweekly pay frequency runs every 14 days, two months each year will include one additional paycheck. These extra paychecks don’t increase annual earnings, but they can affect things like benefits deductions, which are often only taken from the first two paychecks. Employers should plan for the added payroll run when budgeting.

Can hourly employees be paid semi-monthly?

Hourly workers can be on a paid semi-monthly pay period, but it can be more complex. This pay schedule often splits workweeks across pay periods, which makes overtime tracking and hourly calculations more challenging. If you pay hourly employees on a semi-monthly basis, you’ll need to ensure your payroll system properly handles overtime based on weekly thresholds, as required by the Fair Labor Standards Act (FLSA).

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A Guide to State and Local Pay Transparency Laws [2025]

Summary

  • Pay transparency laws help promote pay equity and transparency by requiring employers to disclose information, such as wage information and benefits, in job postings.
  • There is no federal law on pay transparency, but several states have implemented their own regulations.
  • Payroll software can help standardize pay rates and ensure compliance, especially for businesses operating across state lines.

To bridge the pay equity gap, several states and localities in the United States have enacted pay transparency laws. These laws have helped promote openness around hiring processes and compensation, but they’ve also introduced challenges for HR and payroll teams.

What does pay transparency mean?

Pay transparency refers to the practice of disclosing compensation-related information to employees, job applicants, or the public. This can include salary ranges, benefits, wage changes due to promotions, or pay by role or department. The level of disclosure depends on local or state laws. Some jurisdictions require proactive disclosures, while others only mandate sharing this information upon request. Certain regulations also specify whether disclosures must be made internally, externally, or both.

The goal of pay transparency is to ensure employees are paid fairly and to help them assess whether their compensation aligns with their role. When implemented effectively, pay transparency can support talent attraction and retention, enhance employee morale, strengthen employer branding, promote pay equity, and mitigate wage discrimination or unfair labor practices.

However, transparency also puts the responsibility on employers to manage how employees respond, especially when they discover they’re earning at the lower end of a wage range. It also adds compliance complexity, particularly for multi-location businesses navigating a patchwork of state and local laws.

Is there a federal law on pay transparency?

At the federal level, there are currently no federal laws requiring businesses to disclose pay information. In the absence of nationwide regulations, some states have introduced their own pay transparency laws, requiring organizations operating within their borders to meet specific disclosure requirements.

Which states have pay transparency laws?

Currently, 14 states, including D.C., have implemented pay transparency laws at the state level. While Ohio doesn’t have a statewide policy, some of its local jurisdictions have adopted their own rules.Here’s a running list of states and localities with pay transparency laws in place:

California

  • Employers with 15 or more employees must include the pay scale for a position in any job postings, including third-party organizations that are posting job ads on their behalf. 
  • Upon request, employers must provide the pay scale to an employee for the position that they are currently employed.
  • Employers must maintain records on the job title and wage history of each employee for the duration of their employment plus three years after they’re no longer with the company. Records should be open to inspection by the Labor Commissioner. 
  • Employers with 100 or more employees are required to submit an annual report on pay data, which is due every year in May. 

Colorado

Under Colorado’s Equal Pay for Equal Work Act, pay transparency rules require employers with at least one employee in the state to: 

  • Disclose pay and other information in job postings and notices, internally and publicly:
    • Compensation, benefits information, how and when to apply
    • The rate of pay or a range of offered rates (hourly, salary, piece rate)
    • General description of any other compensation (e.g. bonuses, commissions, or tips)
  • Disclose available job opportunities to all employees and also disclose who was selected.
  • Disclose how to advance through career progressions to eligible employees.
  • Keep records of wages and job descriptions.

Connecticut

  • Employers must include the pay range (salary or hourly rate) and a description of benefits to external job ads, internal job postings (promotions or transfers), and remote jobs if an employee would report to someone in Connecticut.
  • Disclosure should be upfront and proactive.

District of Columbia

  • Employers with one or more employees in D.C. must provide the minimum and maximum projected salary or hourly pay in all job listings.
  • Employers must disclose healthcare benefits before the first interview.
  • Employers must post a notice about employee rights under this law in a visible, shared space at work. 

Hawaii

  • Employers with 50 or more employees must include the hourly rate or salary range in job listings.
  • However, the law does not specify the location of the 50 or more employees nor the type of their employment.
  • Unlike other states, Hawaii does not require employers to disclose pay information on internal transfers and promotions. 

Illinois

  • Employers with 15 or more employees (full-time or part-time) must include a pay range and a description of benefits.
  • Employers must inform current employees of job openings.
  • If an employer posts a job posting publicly, they are also required to inform all current employees of the job opportunity within 14 days. 

Maryland

  • Internal and external job postings should include the pay range, a general description of benefits, and other compensation details offered (e.g., overtime, tips, commissions, bonuses, etc.).

Massachusetts

  • Employers with 25 or more employees must disclose the pay range in the job posting for any position.
  • Employees and job applicants have the legal right to know the pay range for a job when they apply, get promoted, transfer, or start a new position with an employer that has 25 or more employees. 
  • Current employees can also ask for the pay range for their current position. 

Minnesota

  • Employers with 30 or more employees are required to disclose the pay range for each job posting.
  • Employers must also provide a general description of benefits and other compensation (e.g. health or retirement benefits).
  • If the employer can’t provide a salary range, they must list a fixed rate.

Nevada

  • Employers must disclose the wage or salary range for a position to applicants after an interview. 
  • Employers must also disclose the wage and salary range for current employees who are seeking a promotion or transfer.

New Jersey

  • Employers with 10 or more employees over 20 calendar weeks must disclose the hourly wage, salary, or pay range in external job postings, internal promotions, or transfer opportunities. They must also provide a description of benefits an employee can expect to receive in the first 12 months.
  • Jersey City: Local rules in Jersey City require employers with five or more employees to disclose the minimum and maximum base salary or hourly wage, as well as the job benefits being offered. 

New York

New York has statewide rules and local regulations in place.

In New York state, employers with 4 or more employees are required to: 

  • Disclose pay ranges for all jobs, promotions, and transfer opportunities. 
  • Disclose compensation basis (e.g. completely commission-based work).
  • Include a job description, except when the job title itself is self-explanatory.

New York City, Ithaca, Albany, and Westchester County have their own pay transparency rules. Their regulations are similar and aligned with state requirements but may have differences in who can file a complaint to the state’s department of labor and the penalties involved. For instance, New York City allows employers a 30-day window to correct their pay information once they receive a notice of violation. The state law doesn’t have this provision.

Rhode Island

Employers are required to disclose the pay range when someone is hired, when an employee moves to a new job within the company, or when an employee requests it.

Vermont (Effective Date: July 1, 2025)

  • Businesses with 5 or more employees, with at least one working in Vermont, must include a minimum and maximum salary range in all job ads, including internal and external postings, promotion opportunities, and transfers. 
  • Employers must clearly state if jobs are commission-based. 
  • Employers must specify a base wage for tipped positions.

Washington

  • Employers with 15 or more employees must include the salary range, general description of all benefits, and other compensation offered in their job postings.
  • Employers must provide the salary range for new positions to employees who are offered a transfer or promotion. 

Ohio

Ohio does not currently have a statewide pay transparency law. However, some local rules are currently in effect. 

  • Cincinnati and Toledo: Employers with 15 or more employees must disclose the salary range upon request after the first interview.
  • Cleveland: Employers with 15 or more employees must include the salary range in job postings. (Effective date: October 27, 2025)

How can businesses adapt to pay transparency laws? 

Pay transparency is gaining momentum, and more states and localities are expected to enact rules in the near future. While these laws aim to close wage gaps, they can present challenges, especially for businesses operating across multiple jurisdictions.

Pay transparency laws often trigger company-wide policy changes. While HR usually leads these updates, payroll teams play a crucial role in ensuring that publicly disclosed pay ranges align with actual employee compensation.

Here are some practical tips to help payroll teams prepare and comply with current wage transparency rules and stay ahead of new laws:

Standardize pay rates across job sites and states

Consistent pay structures are crucial for compliance, particularly when hiring across multiple locations. Job titles and pay ranges should be clearly defined and aligned to meet local disclosure requirements. Inconsistencies can result in compliance risks and employee mistrust.

Post accurate and realistic pay ranges

Job postings must reflect actual compensation, not placeholders. Pay ranges should be based on current pay data and reflect what job candidates can realistically expect to earn. Ranges like “$50,000–$100,000” can signal noncompliance or raise red flags with regulators.

Evaluate internal pay equity across similar roles

Regular pay equity audits can help identify whether employees in similar roles are being paid fairly and equitably. If differences or disparities exist, document whether they are justified by performance, tenure, or other legitimate factors. Transparency laws make it critical to catch and address any unexplained gaps.

Keep organized payroll records

Accurate, centralized payroll records are essential. You’ll need clear documentation connecting job titles, hours worked, and pay rates, especially if employees or regulators request it.

Upgrade your systems to support compliance

Manual processes and outdated tools make compliance more difficult and prone to error. Upgrade your existing systems to centralize all your data and make it easy to track pay rates, monitor pay equity, and stay ahead of legal requirements. 

How Workforce.com helps with pay transparency compliance

Workforce.com combines payroll, time tracking, and scheduling into a single system. You can assign pay rates by role and location, ensure job postings reflect current compensation, and quickly identify any gaps and inconsistencies. With centralized records and reporting, it’s easier to comply with transparency requirements and to build a more consistent payroll process overall.

Discover how Workforce.com can help simplify payroll and compliance with pay transparency rules. Book a demo today.

This information is for general purposes only and should not be considered legal advice. While we strive to keep it updated, labor laws and regulations can change at any time. It’s always a good idea to consult with a legal professional or relevant authorities to comply with the most current standards.