Workday Workday-Pro-Compensation WorkdayProCompensationExam Exam Practice Test

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.

ForTotal Cost (India), the requirement is that only50% of total compshould be allocated towardsalary plans.

This is achieved by using theManage Basis Total option, where you can set maximum percentages for specific plan types (e.g., Salary = 50%).

This ensures salary stays capped at half of total, regardless of other components.

Why not the others?

A. Fixed compensation basis→ Doesn’t handle percentage capping.

B. Remove retirement plans→ Irrelevant; retirement can stay, the key is controlling salary %.

D. Change ranking to 50→ Ranking only determines basis priority, not limits.

Compensation gradesin Workday definepay ranges(minimum, midpoint, maximum) for job profiles.

Their purpose isguidanceduring compensation transactions (hire, promotion, merit increase, etc.), ensuring pay is competitive and consistent.

They do not enforce payroll mapping or overtime eligibility directly but help managers and HR align salary offers to market ranges.

Why not the others?

B. Connect salary to payroll→ That is done bycompensation elements, not grades.

C. Overtime eligibility→ Determined bywork hours & worker type, not grades.

D. Compensation basis for reporting→ Controlled bycomp basis setup, not grades.

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.

The employee is afull-time support analyst in Mexico City.

The relevant bases are:

Total Pay (Mexico)→ For Mexican employees.

Total Compensation Non-Sales→ For non-sales, full-time employees globally.

Since the employee qualifies forboth, theranking determines priority.

Ranking:

(10) India

(20) Non-Sales

(30) Sales

(40) Mexico

Normally, thelowest ranking number (highest priority)applies. But becausegeography-based bases (Mexico)are more specific,Total Pay (Mexico)becomes the primary basis despite being ranked 40.

Why not the others?

B. Salary and Seniority→ Unranked, only applies when no ranked basis fits.

C. Sales→ Not a sales role.

D. Non-Sales→ Qualified, but Mexico-specific basis takes precedence.

By default, if compensation defaults from the requisition, Workday mayskip eligibility re-checks.

To ensure eligibility rules arealways executedduring the Offer process (especially if location, job family, or country changes), enable:

Run Eligibility Rules when there is Requisition CompensationinEdit Tenant Setup – HCM.

Why not the others?

B. Enable Defaulting Based on Guidelines→ Controls guideline defaults, not eligibility evaluation.

C. Edit Offer business process security→ Security won’t trigger eligibility rules.

D. Enable Eligibility Rule Performance Enhancement→ Improves performance but doesn’t force rule execution.

If you want to restrict employees so they can only submita single one-time payment per payment event, you must ensure thatMultiple One-Time Payments is not enabledin tenant setup.

When disabled, Workday enforcesone plan per effective date/reason.

Why not the others?

A. Segment security→ Controls data access, not number of payments allowed.

B. Rule-based BP→ Governs approvals/workflow, not structural system behavior.

C. Enable Multiple One-Time Payments→ Would allow multiple entries (opposite of requirement).

The requirement is aflat $500 monthly allowancefor Sales employees.

Amount-based allowance planis the correct choice since it supports fixed, recurring payments in a defined currency and frequency.

Adding aneligibility ruleensures only employees in theSales job familyare assigned this allowance.

Why not the others?

A. Unit-based allowance plan→ Used when pay is based on number of units (e.g., kilometers, credits), not flat amounts.

B. Percent-based allowance plan→ Tied to % of base pay, not a fixed dollar figure.

D. Reimbursable allowance plan→ Used for expense reimbursements, not recurring flat compensation.

Effective Date (March 1)= When the pay increase is valid for payroll.

Employee Visibility Date (March 21)= When employees can actually see the change in Workday.

This allows managers to communicate the increase by March 20, and employees only see it from March 21 onward, while payroll processes it correctly on March 31.

Why not the others?

A. Expected End Date March 31→ Used to close plans, not to control visibility.

B. Actual End Date March 1→ Would end the plan immediately.

D. Effective Date March 5→ Wrong; payroll needs it effective March 1.

To retire or replace an existingbonus plan, you need to mass-remove it from all employees currently assigned.

The standard Workday task for this isRemove Compensation Plans from Employees, which allows you to:

Select thecompensation planto remove.

Apply aneligibility ruleto identify affected employees.

This is efficient and ensures employees no longer carry the outdated plan.

Why not the others?

A. Mark plan inactive→ Prevents new assignments but doesn’t remove existing employee assignments.

C. Request Bonus Payment web service→ Used for issuing payments, not removing plans.

D. Change Job→ Not appropriate for mass plan removal.

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.

AUnit Salary Planpays based onunits worked(e.g., miles, credits, or kilometers).

In this case, pilots earn extra based onkilometers flown, makingunit salary planthe correct choice.

It also supportsestimation of wagesfor offer letters since you can project based on expected units.

Why not the others?

A. Unit-based allowance plan→ Allowances are flat recurring payments, not tied to actual units worked.

B. One-time payment→ Used for bonuses or ad hoc payments, not recurring per-unit pay.

D. Period salary plan→ Handles additional pay periods, not per-unit payments.

Since the eligibility rule evaluatespay rate type = salaried, you need to ensure every job profile has thecorrect pay rate type assigned.

This prevents mismatches where employees may not qualify for the salary plan due to missing or inconsistent data.

Why not the others?

A. Modify rule to evaluate all job profiles→ Broadens scope incorrectly; doesn’t ensure data integrity.

C. Pay rate type on job requisitions→ Impacts recruiting, not existing employee eligibility.

D. Assign salary plan to job profiles→ Comes after ensuring the pay rate type is consistently set.

Assigning acompensation grade to a job profilelinks that job to adefined pay range(min, midpoint, max).

This ensures that whenever employees are hired or promoted into the job profile, Workdaydefaults the pay range guidanceautomatically.

Managers and HR can then use this information to propose fair and competitive pay.

Why not the others?

B. Target compensation amount→ Target comp is usually set at the employee or plan level, not the grade.

C. Eligibility for bonus plans→ Controlled viaeligibility rules, not compensation grades.

D. Compensation frequency→ Determined byplan setup (annual, monthly, hourly), not by grades.

APeriod Salary Planin Workday supports paying employees more than 12 times per year (e.g., 13 or 14 payments for regions like Italy or Spain).

This allows payroll to spread annual salary across the correct number of pay periods.

Why not the others?

A. Unit salary plan– Pays based on units (like per credit hour for faculty), not extra months.

B. Hourly plan– Pays by worked hours, not relevant to salaried employees.

D. Salary plan– Standard salary plan assumes 12 months and does not support extra pay periods.