Flat-rate vs. per-employee time-clock pricing

The two basic calculations

Flat-rate employee-band pricing puts a fixed monthly amount against a maximum team size. Per-employee pricing multiplies a rate by billable seats, sometimes with a base or location fee added. Neither approach is always cheaper.

For illustration only, a hypothetical $5-per-person quote with no base fee costs $50 a month for 10 employees. The proposed Gates Starter rate is $15 a month for up to 10. That is a $35 arithmetic difference, not a researched competitor quote and not proof of equivalent features.

A base fee changes small-team comparisons

A base fee can matter more to a five-person crew than to a large organization. Ask whether it is per company, per location or per payroll account. Do not subtract an advertised employee price from a flat team price without including the base.

Growth happens at different points

Per-employee fees usually change with each billable seat. A banded plan stays at one price until the next threshold, when the increase may be larger. Model the headcount you have today and the next sensible stage of growth. For Gates, the proposed transition is from up to 10 to up to 30 employees; larger teams are outside the current focus.

Who counts as a seat?

Make a list of employees, owners, supervisors and outside bookkeepers. Ask which roles consume paid seats and what happens to inactive employees. An archived person’s old hours should not become a surprise access problem.

Let the workflow break a close price tie

When the annual totals are close, look at the correction process, manager access, employee clarity and the time-file handoff. If the cheaper option needs repeated manual cleanup, its lower subscription may not solve the problem you set out to fix.

Try the numbers, then try the product

Use our free software cost calculator with the quote in front of you. Keep one-time costs separate. Then test the product with sample records. The calculator displays proposed Gates launch pricing; it does not turn the free pilot into an active paid subscription.