Which statement regarding salary continuation programs is NOT correct?

In a salary continuation program, the primary goal is to provide employees with income protection during periods when they are unable to work due to illness or injury. The correct statement indicates that employers are indeed required to report accrued liabilities related to these benefits.

When it comes to accounting and financial reporting, salary continuation plans can create liabilities for the employer. This is because these programs often guarantee a continuation of salary or wage payments for a specified period, leading to obligations that need to be recorded on financial statements. Therefore, stating that employers do not need to report these accrued liabilities misrepresents the regulatory landscape surrounding salary continuation programs.

In addition, the other options highlight the benefits and characteristics of salary continuation programs accurately. They encourage responsible use of sick day allowances, clarify the regulatory environment by suggesting that these plans may not fall under ERISA, and indicate that insurance companies can provide necessary guidance on compliance and regulatory matters. This context helps to underpin the importance of liability reporting in the overall management of such benefits.