---
title: Time tracking and running payroll
slug: time-clock-and-payroll-runs
category: Payroll & Time Tracking
url: https://alaga.io/help/article/time-clock-and-payroll-runs
audiences: business_owner, manager
updated: 2026-08-18
source: Alaga Help Center
---

# Time tracking and running payroll
## The time clock

Staff clock in and out from the time clock widget, optionally tagging a job code. Clocking out asks for **break minutes**. If a shift runs past your break threshold with no break recorded, a "break required" warning appears.

A **Manual Time Entry** dialog covers forgotten punches: date, clock in, clock out, break minutes, job code and notes.

Each person can see their own record at **My Time Card**, with tabs for the time card and pay history, plus totals for hours, break time, shifts and average shift length.

Time entries move through draft, submitted, approved, rejected, locked and processed. **Only approved, completed entries are paid** — an entry with no clock-out is skipped by the payroll calculation, so approving time before a run matters. Managers approve entries under Team and Payroll, Time Management, Time Entries.

## Pay profiles

Team and Payroll, **Payroll**, then the **Pay Profiles** tab. Each person gets:

- **Employment Type** — W-2 employee or 1099 contractor
- **Pay Type** — hourly or salary
- **Hourly Rate**, or **Salary Amount** plus a **Pay Cadence** (weekly, bi-weekly, semi-monthly or monthly)
- **Overtime Enabled** and an **Overtime Multiplier**, default 1.5
- **Effective Start Date**
- **PTO Days per Year** and **Sick Days per Year**

**1099 contractors are excluded from payroll runs** by design.

## Running payroll

Five stages, in order: **Create Period**, **Start Run**, **Calculate**, **Approve**, **Finalize**. A finalized run is locked. You can export a CSV from any stage past draft.

What Calculate does:

- Hours are clock-out minus clock-in minus break minutes, for approved and completed entries only.
- Overtime is applied above 40 hours in a week. In states that require it, daily overtime and double time are applied too.
- Hourly pay uses the rate recorded on the time entry at the time it was worked, not today's rate, so a raise does not retroactively change old hours.
- Salary is the annual amount divided by the number of periods in the cadence.
- Commission comes from completed appointments assigned to that person under an active commission plan. Product commission is not included.
- Tips are added, then bonuses, reimbursements and deductions.

Gross is the sum of all of that. **Net is gross minus deductions — Alaga does not calculate tax withholding.** Feed the export to your payroll provider or accountant for taxes.

## Related

- **Time Management** — team schedules, time entries, booking times and time-off requests, which staff submit as PTO or sick time.
- **Activity Logs** — who changed what, with date-range filters.