Pass the Workday Human Capital Management Workday-Pro-Compensation Questions and answers with CertsForce

When multiplecompensation basesapply to an employee, Workday selects theprimary basisbased onranking (lowest number = highest priority).

Rankings here:

Management = 1

International = 2

Sales = 3

Therefore,Management Compensationis the primary basis.

Why not the others?

B. Sales Compensation→ Ranked lowest (3).

C. International Compensation→ Ranked 2, lower than Management.

D. Total Base Pay→ Not listed among eligible ranked bases here.

When setting up acar allowance plan(or any allowance/compensation plan in Workday), you must ensure that it is tied to payroll through the correctcompensation element.

Here’s the breakdown of the options:

Maintain Compensation Elements✅

This task is where youcreate, configure, and manage compensation elements.

Everycompensation plan(like salary, allowance, bonus) must be associated with acompensation element, which then links topayroll earningsfor processing.

For acar allowance, you would create a new compensation element (type = allowance) so that payroll can recognize and pay it.

Maintain Compensation Element Groups

This is used to group multiple compensation elements together for easier administration, reporting, or eligibility rules.

It does not create the element itself, so it’s not the right task here.

Map Compensation Elements to Payroll Earnings

This step is necessaryafterthe element exists, to map the element to the correctpayroll earning code(so payroll knows how to pay it).

However, you can’t map something that hasn’t been created yet.

Edit Tenant Setup HCM

This is a higher-level tenant configuration task for broad HCM settings (security, defaults, integrations, etc.).

It is not used for creating compensation elements.

????The correct first step to create acar allowance compensation plan that can be processed by payrollis to use the taskMaintain Compensation Elements.

References (Workday Pro Compensation knowledge & training):

Workday Pro Compensation Training:Compensation elements are the foundation for linking plans to payroll. The “Maintain Compensation Elements” task is where new elements are created.

Workday Community – Compensation Element Setup Guide:Clarifies the difference between creating (Maintain Compensation Elements), grouping (Maintain Compensation Element Groups), and mapping (Map Compensation Elements to Payroll Earnings).

Workday Payroll & Compensation Integration Documentation:Requires elements to be defined before they can be mapped to earnings.

Some countries (e.g., Italy, Spain) legally require employees to be paid13 or 14 times per year.

Workday supports this by using aPeriod Salary Planwith amultiplier, which allows additional months, weeks, or days of pay.

In this case, to meet the legislation for an extra month, configure theperiod salary plan with a 1-month multiplier.

Why not the others?

A. Amount-based allowance plan→ Allowances are supplemental, not designed for legislated base salary multipliers.

B. Percent-based merit plan→ Merit is performance-based, not a legislative requirement.

C. One-time payment plan→ One-time payments are ad hoc, not recurring annual extra months.

Default compensation for requisition compensationensures thatall hires from a requisition default to the same plan amounts/rates, supporting consistency in offers.

This prevents discrepancies between candidates applying for the same role and requisition.

Why not the others?

A. Guidelines on a position→ Position compensation is separate from requisition compensation.

C. Every employee in position receives same compensation→ Controlled by position defaults, not requisition.

D. Eligible plans view→ That’s determined bycompensation package setup, not requisition defaults.

To increase thehousing allowance plan from $3,000 → $3,500and update both new and existing employees:

UseSet Up Allowance Plan Adjustmentwith optionAdjust to New Defaults.

This updates all employees on the plan to the new standard amount while ensuring future hires also default to the updated value.

Why not the others?

A. Create a new plan→ Creates unnecessary duplication, complicating reporting.

B. Edit the allowance plan directly→ Updates default for future, but not current employees.

D. Request Compensation Change per employee→ Manual, time-consuming, not scalable.

Gross Up= Adjusting a payment so that after tax deductions, the employee takes home the intended net amount.

Example: If you want an employee tonet $1,000, and taxes are 20%, Workday will calculate and issue ~$1,250 gross so the employee keeps $1,000 after taxes.

Why not the others?

A. Show taxes to user→ Not what Gross Up does.

B. Manual update required→ Gross up is automated, not manual.

C. Apply taxes normally→ Workday already applies taxes; gross up goes further by adjusting amounts.

Aconfigurable compensation basisallows you to definewhat plans contribute to compensation calculations.

For the sales team, the basis should include:

Base salary (salary plan).

Monthly commission earnings (commission plan).

Quarterly bonus plan (bonus plan).

Configurable compensation bases are designed for flexible aggregation of multiple comp plans.

Why not the others?

B. Total salary and allowances basis→ Covers only salary + allowance, does not include bonus/commission.

C. Compensation grade→ Defines ranges, not aggregation of comp plans.

D. Calculation compensation basis→ Not a Workday configuration type (confusion with calculated fields).

TheCompensation Rule Assignment reportlistsall compensation components (plans, packages, elements, etc.) that are using eligibility rules.

This helps administrators verify where and how eligibility rules are applied across the system.

Why not the others?

B. Employee Compensation Audit→ Focuses on mismatches between eligibility and assignments, not all rules in use.

C. Compensation Spreadsheet→ Shows comp details, not eligibility rules.

D. Compensation Changes→ Tracks transaction history, not rule assignments.

TheDynamic Displayoption controls whether Workday shows onlyrelevant compensation plan sectionsduring transactions likePropose Compensation Change.

It evaluates:

Worker eligibility rules(which plans apply).

User security permissions(what the initiator can see).

This ensures users only see compensation sections relevant to their context, reducing clutter and errors.

Why not the others?

A. Segment security→ Controls data security, not dynamic display.

C. Hide Total Salary & Allowances→ Hides totals, doesn’t manage section visibility.

D. Eligibility Rule Performance Enhancement→ Improves performance, not visibility.

Compensationgradesdefine pay ranges, andgrade profilesallow variation bylocation, job family, or other attributes.

In this case, the Software Engineer role exists inLondon, New York, and Milan, so the best practice is to:

Createone compensation grade(Software Engineer).

Addgrade profilesfor each location, each with its own pay range.

Attach thegrade(with all profiles) to the job profile.

Why not the others?

A. One grade per location→ Duplicates maintenance effort; profiles exist for this purpose.

B. Three grades tied to three job profiles→ Unnecessary; job profile is the same role globally.

D. One grade with eligibility rules→ Eligibility determines who qualifies, not pay ranges per location.