Under what conditions is an employer required to accrue a liability for sick pay?
A) Sick pay benefits can be reasonably estimated.
B) Sick pay benefits vest.
C) Sick pay benefits equal 100% of the pay.
D) Sick pay benefits accumulate.

Question

Quizplus · Accepted Answer

An employer is required to accrue a liability for sick pay when the benefits vest, meaning the employee has earned the right to the benefits and they cannot be forfeited.

Under What Conditions Is an Employer Required to Accrue a Liability