Tags are indepent from Projects, Tasks and Clients and are totally customizable. The administrators can create a set of Tags which team members can then use to mark their time logs. 

As an administrator you could for example create tags such as 'Field work', 'Remote work',  'Prepaid hours', 'Expenses', 'Flat fee task'., .. You can actually create a Tag for any custom category that My Hours does not provide out of the box but you would like to track it anyway.

You will be able to create and edit custom Tags if you go to Organize > Tags:

Team members can then use these Tags to tag their time logs:

The Activity report and the Admin panel can then be filtered by these tags:

USING TAGS IN THE ADMIN PANEL

The administrator can create a tagging system for their own use as well. They are able to tag time logs of other team members in the Admin panel

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