Taking the time to setup proper hour types is important in your time clock system.
If you setup too few, you don't get the reporting and the detail that you will want out of your system. Setting up too many is not a good idea either. This will complicate your system and hurt usability.
What are hour types? Simply they represent types of hours your employees can have on their timecard. For example, some common hour types are:
PTO (Paid Time Off)
If you want to go into further detail, you can setup more advanced types. Such as:
Taking the time to setup an adequate number of types will provide your system with quality reporting. However, don't go overboard and setup too many.