Employee Time Clock Cost: The Real Numbers for Small Business Owners

Shopping for an employee time clock? That price tag you see online is rarely the full story. Between hardware, software access, setup fees, and ongoing costs, the real investment can surprise you.

The Three Parts of Your Total Investment

Most small business owners focus on the time clock itself and miss two other critical pieces. Understanding all three helps you compare options fairly and know exactly what you're signing up for.

#1. Hardware: The One-Time Purchase

The physical time clock is your foundation, and prices range widely based on technology. Basic fingerprint readers start around $99-$150 and handle straightforward clock-in needs for small teams. Add face recognition to fingerprint scanning, and you're looking at $180-$270. The difference is also in the build quality. A time clock in a dusty auto shop or busy restaurant kitchen needs to withstand tougher conditions than one in a quiet office.

How many machines do you actually need? A single location with one entrance needs one terminal. But if you run a café with separate staff entrances for kitchen and front-of-house, or manage multiple locations, each site or entrance point needs its own machine. The good news: you don't have to buy everything at once. Many businesses start with one and add more as they grow.

#2. Software: Free, One-Time, or Monthly?

Here's where pricing models diverge dramatically. Some companies bundle free cloud software with your hardware purchase, which means you buy the machine, and you get lifetime software access. Others charge a one-time software license fee on top of hardware costs. And many now require monthly subscriptions that never end.

The software is what actually tracks hours, stores attendance data, and lets you review who worked when. Cloud-based options are increasingly standard because you can check attendance from your phone or home computer, not just from the machine itself. The critical question: after you buy the hardware, what does software access cost you monthly, yearly, or forever?

#3. Setup and Support: What's Actually Included?

"Free setup" might mean detailed video tutorials you watch yourself, or it might mean a technician comes to your location. "Included support" could be email responses within 48 hours, or it could be same-day phone help. These differences matter when you're in troubleshooting at 6 AM before your morning shift arrives.

For small teams, video guides and email support usually work fine and keep costs down. But if you need someone to integrate the employee time recorder with existing office software, expect potential charges ranging from $200-$800, depending on complexity. Always ask what "included" actually means before assuming.

One-Time Purchase vs. Monthly Subscriptions

This is the biggest cost decision you'll make, and it shapes what you pay not just this year but for as long as you use the time clock.

How Per-Employee Pricing Works (And Adds Up)

The subscription model typically charges $3-$8 per employee monthly. Sounds manageable, right? Let's do the math. For a 15-person team at $5 per employee:

• Monthly: $75
• First year: $900
• Three years: $2,700

That's $2,700 in software fees alone, which is often more than you paid for the hardware. And if you hire five more people next year, your monthly bill jumps to $100. The subscription grows with your team, which means your costs are never locked in.

What do you get for that monthly fee? Usually, software updates, cloud storage, a mobile time clock app for employee access, and basic customer support. Some plans include extras like GPS tracking or advanced reports. But read carefully: "basic support" often means email-only, and phone support costs extra.

The True Cost Over 1, 3, and 5 Years

Let's compare two real scenarios for a 20-employee business:

Subscription Model:

• Hardware: $150
• Monthly fee: $6 per employee = $120/month
• Year 1: $150 + $1,440 = $1,590
• Year 3: $150 + $4,320 = $4,470
• Year 5: $150 + $7,200 = $7,350

One-Time Purchase Model:

• Hardware: $190
• Software: Free (included)
• Support: Free (included)
• Year 1: $190
• Year 3: $190
• Year 5: $190

The one-time purchase looks more expensive on day one. But by year three, you've saved $4,280. Over five years, the savings hit $7,160. This is why looking past the initial sticker price matters so much for small business budgets.

Hidden Costs That Catch Small Businesses Off Guard

Even after you understand hardware and software pricing, a few other expenses can appear unexpectedly.

Implementation Fees Nobody Mentions Upfront

"Implementation" is tech-speak for getting everything set up and running. Some companies include this free: you unbox the machine, follow the quick-start guide, and you're done in 20 minutes. Others charge $200-$800 for a technician to install it and train your staff.

For most small businesses, implementation is straightforward if the company provides clear instructions. You mount the online employee time clock near your entrance, connect it to WiFi, and add your employees. The process takes less than an hour. Training your team is even simpler. Most people figure out fingerprint or face scanning in under a minute. Save yourself the implementation fee by choosing a time clock designed for easy self-setup.

When "Basic Support" Isn't Really Basic

You run into a problem on Friday afternoon. How fast can you get help? With some companies, "included support" means submitting an email ticket and waiting 24-48 hours for a response. Others offer phone support during business hours. A few provide same-day help at no extra charge.

Premium support like immediate phone access, weekend availability, and dedicated account managers often costs $10-$50 monthly or more. Before you buy, think about your comfort level with technology. If you're confident in troubleshooting minor issues yourself with help articles, basic support works fine. If you want the peace of mind of picking up the phone, confirm whether that's included or costs extra.

Calculate Your Real First-Year Cost in 3 Steps

Stop guessing and start calculating. Here's a simple framework that works for any time clock you're considering.

Step 1: Hardware × Number of Locations

Write down the time clock price and multiply it by how many you need. One location, one entrance? That's one machine. Two locations or multiple entrances requiring separate terminals? Multiply accordingly.

Example: $190 per machine × 2 locations = $380

Step 2: Add Setup, Training, and Extra Fees

List everything beyond the hardware:

• Setup/installation fee (if charged): $___
• Training fee (if charged): $___
• Premium features you need (if extra): $___

Many companies include these for free, so this section might be $0. But always ask.

Step 3: Multiply Monthly Fees by 12

If there's a per-employee monthly charge, calculate it honestly:

• $__ per employee × ___ employees = $___ monthly
• $___ monthly × 12 months = $___ yearly

Add up all three steps, and you have your true first-year cost.

Real example: Let's say you run a small restaurant with 18 employees. You need a time clock at the back entrance. With NGTeco's TC1, you pay around $190 for the hardware with face and fingerprint recognition. Setup is free, so you mount it yourself using the included hardware and follow the quick-start guide. NGTeco Cloud software is free with no per-employee fees, and technical support is included at no charge. Your total first-year cost: ~$190. Year three: still ~$190. Compare that to a subscription model charging $4 per employee monthly—that's $864 yearly, or $2,592 after three years, plus the hardware cost.

What Poor Tracking Actually Costs You

Now flip the question: what does inaccurate time tracking cost you if you stick with paper timesheets or an outdated machine?

Time Theft: The Silent Budget Drain

"Buddy punching" (when one employee clocks in for another who's running late) is more common than most business owners realize. Even without intentional fraud, manual time tracking leads to rounding up. An employee arrives at 8:07 but writes down 8:00. They leave at 4:52 but mark 5:00. Just 15 extra minutes per shift adds up to 1.25 hours weekly, or about 65 hours yearly per employee.

For a $15/hour worker, that's $975 annually you're paying for time not actually worked. Multiply by your team size. For ten employees, you're losing nearly $10,000 yearly to timesheet inaccuracy. Biometric time clocks eliminate this immediately: you can't share a fingerprint or face, and the machine records the exact second of clock-in.

Compliance Risks That Turn Into Legal Bills

Federal and state laws require businesses to maintain accurate time and attendance records, typically for at least three years. When an employee files a wage dispute claiming unpaid overtime or incorrect hours, your defense relies entirely on your records. Paper timesheets with handwritten times and crossed-out corrections don't hold up well.

A time clock with cloud backup creates a tamper-proof, timestamped record of every clock-in and clock-out. If you ever face a labor dispute or compliance audit, you have clear data showing exactly who worked when. This isn't about mistrust—it's about protecting both your business and your employees with factual records that no one can dispute.

Match Your Budget to Your Needs

Small teams (for example, teams under 20) don't need enterprise-level complexity. Focus on these essentials:

• Biometric accuracy: Fingerprint or face recognition stops buddy punching and eliminates forgotten passwords or lost cards.
• Cloud access: You should be able to review attendance from your phone or home computer, not just from the machine itself.
• Overnight shift support: If anyone works past midnight, the software must handle overnight shifts correctly. Cheaper programs often stumble here and split one shift across two days incorrectly.
• Simple employee management: Adding and removing employees should take seconds, not a training course.

What you probably don't need: GPS tracking, advanced analytics dashboards, or integration with complex enterprise software. These features look impressive, but they add cost and complexity that small businesses rarely use.

Why the Cheapest Option Usually Costs More

A $79 Clock May Cost You $1,500 in Year One

A $79 time clock seems tempting until you discover it requires $6 monthly per employee for the software to actually work, charges $300 for setup, and offers only email support with 72-hour response times. Meanwhile, a $190 time clock with free software, free support, and easy self-setup costs less over any realistic timeframe.

Calculate 3 Years, Not Just the Sticker Price

The cheapest hardware often comes from companies betting you won't calculate the total cost until after you've bought it. Look at what you'll pay over one year, minimum, preferably three years. That's the real price comparison. And factor in your time—a complicated setup that takes four hours of your Saturday has a cost, even if the company calls it "free implementation."

NGTeco: One Price, Everything Included

For businesses managing tight budgets, NGTeco designed their time clocks specifically around transparency and value. The NG-TC4 at $99.99 gives you fingerprint recognition for up to 100 employees with free cloud software and support—no subscriptions, no surprise fees. For businesses wanting face recognition too, the TC1 at ~$190 handles 200 employees with multiple clock-in options. Both include overnight shift support and WiFi connectivity. You buy the hardware once, and everything else is included. When you're comparing options, ask yourself: What will this actually cost me after one year? After three years? The answer might surprise you.

Conclusion

The real cost of a time clock has three parts: the machine itself, software access, and setup help. When you add these up for the whole year (not just day one), you'll see the true price. This stops surprise charges from catching you off guard. Whether your budget is $99 or $269, knowing what's included means no confusion and better control over your spending.

For better employee time management, NGTeco provides clear and affordable pricing with free cloud software available for select models. See which time clock fits your team!