October Tip of the Month-Payroll Burden

On average, participating GROW hotels run a Burden of 19% of Payroll. Hotels with a GOP higher than 40% run a Burden of 18% of Payroll.

Consistency makes Payroll Burden one of the easiest costs to plan for and monitor. This is because these expenses are based on known factors and a re driven by employee wages, number of employees, and benefits you offer.

Separating your Taxes, Benefits, and Supplemental Pay from Salaries & Wages is the key to making sure your costs are in line. You should update your financial reports to reflect these distinct areas so you are able to ensure costs are in line. Some Choice owners have already realized improve in their Worker’s Comp and other Burden Expenses as a result of comparisons.

Payroll Taxes

  • National/State Disability Insurance
  • National Medical Insurance
  • National/State Retirement Contribution
  • National/State Unemployment Insurance (aka: FICA, FUTA, SUTA, etc)

Employee Benefits

  • Automobile Allowance
  • Child Care
  • Contributory Savings Plan
  • Dental Insurance
  • Disability Insurance
  • Expat Benefits
  • Group Life Insurance
  • Housing and Educational
  • Meals
  • Nonunion Insurance
  • Nonunion Pension
  • Profit Sharing
  • Public Subsidized Transportation
  • Stock Benefits
  • Union Insurance/Pension, and Workers’ Compensation Insurance.

Supplemental Pay

  • Personal
  • Severance
  • Sick
  • Holiday
  • Vacation
  • Paid Time Off

September Tip of the Month-Utilities

Information on USALI’s 11th edition classification of Utilities.

The 11th Edition is very specific in its definition for the Utilities Department. The only line items that should be included here are:

  • Electricity
  • Gas
  • Oil
  • Water/Sewer
  • Steam
  • Chilled Water
  • Other Fuels (examples include propane, kerosene, diesel, geothermal, solar, wind)
  • Contract Services (firms that are engaged in energy audits, water reclamation, or other services that reduce energy consumption)


Things that don’t belong under Utilities (and where they belong):
cable (Rms), internet (Info & Tel), garbage (Maint), pest control (Maint).

August Tip of the Month – CHOICE Franchise Fees Follow up

Accuracy + Awareness = Profit

Advice on where to code both Travel Agent Commissions and OTA costs that are found on the Choice Franchise invoice.

Some owners and managers have asked about Commissions, both Travel Agent and OTA costs, as they are also included on the Choice Fee invoice.  Those fees should be recorded in the Rooms Department in a specific account labeled “Commissions”.   Tracking them is this fashion can help you to see how your contribution of revenue from commission-able sources compares to other operators, and can lead you to valuable conversations with your Franchise Representative about the situation. If you have any other questions, or know of an expense on the Choice Fee invoice we have not defined, please let us know.

August Tip of the Month – CHOICE Franchise Fees

Accuracy + Awareness = Profit

How you track Choice Fees is one key to comparing how your hotel’s profit measures up

Redoing your accounting can be an overwhelming task, but standardizing to the 11th Edition of the USALI will make your GROW Profitability Analysis even more meaningful. Each month we want to provide you one small step you can take towards this goal.

Our topic of the month is “Franchise Fees”. Did you know that the 11 th edition expects the entirety of these fees to be broken down in various departments? If you’re currently grouping them together in one line, we recommend creating the accounts highlighted below. We’ve also included the Departments .

Whether you want to compare your expenses to other operators, to improve your income, OR have a meaningful conversation about your Fees; detailed accounting will help you greatly.