Best overall for hourly payroll4.8From $40/moGusto
Payroll with built-in time tracking and automatic overtime. Import hours from Gusto Time or integrate with other time apps. Handles hourly rates, overtime rules, and PTO—all in one platform.
Best Payroll Software for Hourly Employees (2026)
Compare payroll software built for hourly employees and time-based pay. Top picks for time tracking integration, overtime calculation, and straightforward hourly payroll.
Hourly employees need accurate hours, correct overtime, and pay stubs that reflect time worked. The best payroll tools integrate with time tracking or include it, calculate overtime automatically, and handle multiple pay rates and schedules without extra hassle.
Updated for 2026
Top picks for this use case
Our top payroll picks for hourly employees.
Best overall for hourly payroll4.8From $40/mo
Best for QuickBooks + time tracking4.6From $30/moQuickBooks Payroll
Run hourly payroll inside QuickBooks with optional QuickBooks Time (formerly TSheets) integration. Labor cost flows into job costing. Good for teams that track time by job or project.
Best value for hourly teams4.5From $40/moOnPay
Hourly payroll with overtime calculation and time-tracking integrations. Flat pricing and one plan. Add your preferred time clock or use OnPay’s options—support included.
Compare options
Side-by-side at a glance.
| Software | Best for | Starting price | Payroll types | Standout feature | Review |
|---|---|---|---|---|---|
| Gusto | Best overall for hourly payroll | $40/mo | W-2, 1099 | Built-in time tracking; automatic overtime | Read review |
| QuickBooks Payroll | QuickBooks + time by job | $30/mo | W-2, 1099 | QuickBooks Time integration; job costing | Read review |
| OnPay | Best value for hourly teams | $40/mo | W-2, 1099 | Overtime; time-tracking integrations | Read review |
Editorial guidance for this audience
What to look for when you're choosing payroll as hourly employees.
Time tracking and hours
Hourly payroll depends on accurate hours. Look for built-in time tracking (e.g. Gusto Time) or strong integrations with time clocks and apps. Some providers charge extra for time tracking—confirm what's included. Hours should flow into payroll with minimal manual entry.
Overtime calculation
Federal and state overtime rules (e.g. time-and-a-half after 40 hours) must be applied correctly. The best payroll tools calculate overtime automatically from imported or entered hours. Verify that your provider supports your state’s rules and any industry-specific requirements.
Multiple rates and pay types
If employees have different hourly rates, shift differentials, or multiple pay types, choose software that supports them without workarounds. Running payroll should be straightforward even with varied schedules and rates.
PTO and paid time off
Many hourly teams track PTO (vacation, sick). Some payroll systems include PTO accrual and use; others integrate with HR or time tools. Confirm how PTO is tracked and how it affects pay when employees take time off.
Why these picks work for this use case
Why we chose these tools for hourly employees.
Gusto
Gusto is our top pick for hourly payroll: it offers built-in time tracking (Gusto Time) and automatic overtime calculation. Hours sync to payroll, and you can manage hourly rates, PTO, and multiple pay types in one place. Integrations with other time apps are available if you prefer.
QuickBooks Payroll
QuickBooks Payroll pairs well with QuickBooks Time for time-by-job tracking. Hours flow into payroll and labor cost posts to QuickBooks jobs—ideal for contractors and service businesses that need job costing. Time tracking may be an add-on; check pricing.
OnPay
OnPay supports hourly payroll with overtime and time-tracking integrations at a flat price. One plan keeps billing simple; you can connect your existing time clock or use supported options. A solid choice for hourly teams that want value and clarity.
For more options across all use cases, see our best payroll software roundup. To compare platforms side-by-side, see our payroll software comparisons.
FAQs
Quick answers for this use case.