How do you manage hourly payments for employees or contractors?

For founders who pay employees or contractors on an hourly basis, how do you actually track and verify the hours before processing payment?

Do you usually:

Ask them to submit a weekly/monthly work report
Use a timesheet
Track hours through a project management tool
Use a dedicated time tracking tool
Calculate hours based on tasks completed
Just rely on trust and the person’s reported hours

I’m particularly curious about teams where people are working on multiple projects or where contractors are paid different hourly rates.

How do you make sure the hours reported are accurate without making the process feel like micromanagement?

Would be interested to hear what has worked for founders and managers here.