I am currently using an internet-based time clock called Clockspot. Available from
www.clockspot.net. I find it to be very easy and extremely useful. Absolutely no problems during the past year of use.
It not only keeps track of time in and out, but calculates payroll, keeps track of vacation or personal time accrued, and keeps an ongoing log.
Any timeclock issues, office hour changes, and other information may be communicated through a message board available to everyone. The staff finds it very friendly and easy to use. They can monitor their time this week and can look at last week's also. They can easily see exactly how much personal time they have accrued. (I don't distinguish between sick time, vacation time, etc - I just call it all 'personal time' and they can do what they want with it. However, you are able to separate it all out if you wish.)
Employees are only able to 'time in and out' from this office and cannot do it from anywhere else. (That can be changed as well.)
No downloads. No software to buy. No contracts. It's not that expensive. Base price is $10 per month, $5 for administrator (that's me), then $2 per month per employee. So altogether for myself and 3 employees, it's $21 per month. But for all the features it has, I really like it. Makes payroll a breeze for me.
Hope that helps. If you find something better, please post it here. Thanks.