US hotel payroll costs down, but insurance costs remain

According to labor-management data from Hotel Effectiveness, Hotel's payroll costs in 2020 are 40%-60% lower than in 2019 since more than half of the jobs in the hotel industry have gone after the pandemic. Despite that, it seems like most hotels still need to pay a similar amount for the workers' compensation insurance cost and this leads to cash flow difficulties for hotels. Since insurance companies require to pay their premium at the start of the year, and the premium is estimated from the last year's payroll cost. This might bring the hardship in financial situation and auditing process for hotels.