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Whether you run a bar, manage a retail business, or operate a healthcare facility, this guide will help you find the best payroll system for your hourly workforce.
Running payroll for shift-based teams is inherently more complicated. You’re dealing with inconsistent schedules, variable work hours, multiple pay rates, and a patchwork of federal and state labor laws. With all of this constantly moving and changing, payroll can quickly become an administrative burden when you don’t have the right system.
Beyond calculating wages, the right payroll software for shift-based staff should track hours accurately, apply compliance rules, and streamline scheduling, time tracking, and payroll in a single workflow, saving you hours every pay run.
Let’s look at the top payroll platforms that can be suitable for handling payroll for hourly teams.
Key capabilities to evaluate when selecting payroll software for hourly and shift-based staff:
Functionality
Why it matters
Automated payroll and tax filing
Handles complex hourly pay, taxes, and deductions without manual calculations
Overtime, break, and pay rule compliance
Helps you stay compliant with labor laws and prevent violations
Multiple pay rates and role-based pay
Ensures accurate pay for staff working across roles, shifts, or locations
Labor forecasting
Aligns labor needs with projected demand
Integrated scheduling and time tracking
Syncs actual hours worked directly into payroll, eliminating manual data re-entry.
Employee self-service
Lets staff view pay stubs, swap shifts, check schedules, and clock in wherever they work.
Platform
Best for
Why it stands out
Workforce.com
Mid to large shift-based teams across industries
Purpose-built for hourly workforces with all-in-one scheduling, time tracking, payroll, and compliance
Paycor
SMB to mid-market healthcare services and manufacturing teams
Combines payroll, HR, and shift management tools
ADP
Broad industry teams from SMB to enterprise
Payroll tax handling with optional time tracking and benefits bundles
Gusto
Small businesses with hourly and salaried employees
Easy-to-use payroll with optional time tracking and employee benefits
UKG Ready
Mid-market to large companies
Scalable workforce management with optional modules
Workforce.com is the top choice for shift-based payroll because it’s purpose-built for industries where hourly wages, compliance, and real-time visibility into hours worked and costs are critical. It brings scheduling, time tracking, and payroll together in one unified platform, eliminating manual work and reducing payroll errors.
Unlike generalist platforms that bolt on hourly support, Workforce.com is designed from the ground up for shift-based teams. It automatically handles overtime, break rules, blended rates, and compliance with federal and state labor laws.
With one connected system, all employee data updates in real time across human resources, scheduling, timesheets, and payroll, without the need for double data entry.
Here are some of the key features of Workforce.com that are beneficial for hourly staff:
Single employee profile across HR and payroll: Automate onboarding and let employees complete their forms, tax documents, and personal details right in Workforce.com.
Automatic overtime and labor cost allocation: Automatically calculate the correct blended overtime rate when employees work multiple roles or pay rates in a pay period.
Full-service tax filing: Automatically calculate, file, and pay payroll taxes for W-2 and 1099 employees.
Direct deposit and wage garnishment support: Send employee pay through direct deposit and manage court-ordered wage garnishment without manual processing.
Seamless tip pooling based on hours worked: Split tips based on hours and locations worked, and ensure fair payouts for your team.
Timesheet reminders and approval: Keep timesheets accurate with automatic notifications that remind staff when there are missing hours and alert managers to approve them on time.
AI-powered labor forecasting: Use historical data and relevant indicators to generate accurate labor forecasts automatically.
Built-in employee scheduling software: Create and manage smarter work schedules that sync with attendance and payroll in real time.
Employee self-service: Give staff access to paystubs, timesheets, schedules, and PTO balances from mobile devices.
Customized reporting: Generate detailed payroll reports to analyze labor costs, overtime, and other key metrics.
“I would absolutely recommend Workforce.com to anyone that has complicated scheduling or payroll needs. I have done this process in my career, five or six times, like switching either scheduling or payroll platform. This has been the smoothest by far.”
– John Wynne, Taproom GM, Third Space Brewing
Looking for a platform built around payroll for hourly teams?
Explore Workforce.com and discover how it helped shift-based workforces across the globe.
Pros
Cons
Best for: Mid-sized to large hourly teams in hospitality, retail, healthcare, and service industries.
Pricing: Workforce.com provides quote-based pricing tailored to each business. Speak with our team to learn more.
Paycor is a cloud-based payroll and HR platform that offers payroll processing, tax filing, and employee self-service. Businesses can add modules for time tracking, scheduling, onboarding, and analytics depending on needs.
Pros
Cons
Best for: Paycor is suitable for small and mid-market businesses in healthcare, retail, and education that need integrated HR software alongside payroll.
Pricing (as of 2025): Paycor offers quote-based pricing, which varies depending on company size and selected features.
Note: Pricing details are based on information available as of 2025. For the most current pricing and features, please refer to Paycor's official website.
ADP provides full-service payroll solutions with tax filing, employee self-service, and optional time tracking and scheduling tools. It offers products tailored by company size, including RUN for small businesses and Workforce Now for larger organizations.
Pros
Cons
Best for: ADP can be an option for businesses with 50–10,000+ employees looking for general-purpose payroll and HR solutions.
Pricing (as of 2025): ADP offers quote-based plans based on business size and selected modules.
Note: Pricing details are based on information available as of 2025. For the most current pricing and features, please refer to ADP’s official website.
Gusto is a popular option among small businesses because it offers a user-friendly platform for payroll, benefits, and basic HR tools.
Pros
Cons
Best for: Gusto is best suited for small businesses that need simple and reliable payroll software with basic benefits and HR tools.
Pricing (as of 2025):
Note: Pricing details are based on information available as of 2025. For the most current pricing and features, please refer to Gusto’s official website.
UKG Ready is an all-in-one platform offering payroll, HR, time tracking, and scheduling features. It’s built for organizations with complex workforce needs and offers deep configurability for pay rules and compliance.
Pros
Cons
Best for: UKG Ready can be suitable for mid-market and enterprise businesses that need a centralized workforce management system with configurable rules and processes.
Pricing (as of 2025): Pricing is quote-based, depending on features, modules, and workforce size.
Note: Pricing details are based on information available as of 2025. For the most current pricing and features, please refer to UKG’s official website.
These payroll tools didn’t make the top five but may be worth considering depending on your team size, budget, and business needs:
Best for: Small businesses already using QuickBooks
Why consider it: Integrated with QuickBooks bookkeeping software and includes basic time tracking and scheduling tools in higher-tier plans
Pros: Simple payroll, tax filing, integration with QuickBooks accounting
Cons: Added costs for tools like scheduling
Best for: Mid-sized businesses managing hourly or mobile teams
Why consider it: Broad suite of payroll, HR, and time tracking tools with mobile access
Pros: Scalable platform, mobile app functionality
Cons: Steep learning curve for new users
Best for: Small businesses hiring hourly teams looking for an all-in-one starter platform
Why consider it: Combines scheduling, time tracking, and payroll in a simple package
Pros: All-in-one platform, team messaging
Cons: Payroll is an add-on; scalability may be limited
Best for: Businesses needing reliable payroll and basic HR without complex scheduling needs
Why consider it: A long-standing provider with flexible plans and tax support
Pros: Scalability and payroll tax handling
Cons: Limited scheduling tools and may require third-party integrations
Running payroll for a shift-based team is all about managing moving targets such as inconsistent schedules, overtime rules, time punches, and last-minute no-shows, all while staying compliant with labor laws that can vary by state or industry. Below are some of the most common payroll challenges hourly workforces face and why the right software makes all the difference:
Inaccurate time tracking: Payroll accuracy starts before the pay run, with proper records of employee time. The platform should make it easy to track time accurately across locations and roles.
Overtime and break compliance: Different states and cities have unique overtime and break rules. Calculating this manually increases your risk of violations and fines.
Multiple pay rates for one employee: Hourly staff often work across roles or locations. Without blended-rate support, payroll calculations get messy.
Chasing down timesheets: Managers can spend hours reconciling incomplete time records, delaying payroll and increasing error risk.
Disconnected systems: When scheduling, time tracking, and payroll don’t integrate, every change becomes a potential error and duplicate work.
Unpredictable labor costs: Without real-time visibility into labor spend, managers can’t control margins or react to demand changes promptly.
Limited self-service for employees: If staff can’t view pay stubs or fix timesheet errors themselves, HR and managers become bottlenecks.
Finding the right payroll software goes beyond comparing features. You need to think about how well the system fits your day-to-day operations. For shift-based teams, that means accounting for irregular schedules, overtime rules, multiple pay rates, and compliance with federal and state labor laws.
When vetting software solutions, come prepared with real use cases and ask specific questions that reflect how your team actually works (for example: What happens if someone forgets to clock in? Can we apply different pay rates if someone works two roles in one pay period?). Involve operations, HR, payroll, finance, and IT stakeholders so you get a complete picture.
The right software should connect every step, from onboarding and scheduling to time tracking and calculating pay with as little manual effort as possible. If you’re looking for payroll software truly built around the needs of hourly teams, Workforce.com is a top choice. With HR, scheduling, time tracking, and payroll in one platform, you can simplify operations and ensure your people get paid right, every time.
See how Workforce.com can help your team streamline payroll and more. Book a demo today.