For the past four years, your company offered employees a $3,000 annual housing allowance plan. The company wants to increase this plan to $3,500 annually and make sure the existing employees on the plan get the new amount granted to them.
How would you make this change so that new and existing employees receive the new amount?
Answer : C
To increase the housing allowance plan from $3,000 $3,500 and update both new and existing employees:
Use Set Up Allowance Plan Adjustment with option Adjust 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.
Workday Pro Compensation -- Allowance Plan Adjustments: ''Adjust to New Defaults'' is the method to update current assignments.
A manager is proposing compensation for an employee and is only able to assign the car allowance. When the compensation partner approves the compensation change, they are able to assign any allowance plan configured in the tenant, even if the employee is not eligible for those plans.
What security domain allows the compensation partner to assign allowance plans that the employee is not eligible for?
Answer : D
The scenario describes a compensation partner being able to assign any allowance plan, even when the employee is not eligible.
This is controlled by the security domain 'Add Compensation Plans: Add Allowance', which allows users with access to bypass eligibility and directly assign allowance plans.
Why not the others?
A . Worker Data: Compensation Plan Type Governs visibility to compensation data, not bypassing eligibility.
B . Select Any Compensation Package Pertains to choosing packages, not adding allowance plans outside eligibility.
C . Worker Data: Compensation for Managers Grants managers ability to propose comp, but does not override eligibility.
Workday Pro Compensation -- Security Domains for Compensation Plans: ''Add Compensation Plans: Add Allowance'' allows assignment of ineligible allowance plans.
A mobile allowance plan has an amount of $150 per month. The new amount will be $200 for those employees using the plan. Employees using an override amount will keep their current difference.
How will you update the plan target and maintain current differences?
Answer : A
The business requirement: Raise the default mobile allowance from $150 $200, but keep employees with override amounts at their current difference.
Using Set Up Allowance Plan Adjustment with the option Adjust by Same Amounts for Employees Using Override ensures that:
The default is increased by $50.
Employees with overrides will also receive a $50 adjustment (preserving their override difference).
Why not the others?
B . Change plan amounts & rollout Would overwrite override amounts, losing differences.
C . Remove and rollout new plan Unnecessary and disruptive.
D . Adjust to New Defaults Would reset overrides to default, eliminating differences.
Workday Pro Compensation -- Allowance Plan Adjustments: Adjust by same amount option maintains override differences.
Workday Community -- Managing Plan Adjustments.
You need to create a car allowance plan. In order for your compensation plan to be paid by payroll, you determine you need to create a compensation element. What task do you use to set up the compensation element?
Answer : C
When setting up a car allowance plan (or any allowance/compensation plan in Workday), you must ensure that it is tied to payroll through the correct compensation element.
Here's the breakdown of the options:
Maintain Compensation Elements
This task is where you create, configure, and manage compensation elements.
Every compensation plan (like salary, allowance, bonus) must be associated with a compensation element, which then links to payroll earnings for processing.
For a car 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 necessary after the element exists, to map the element to the correct payroll 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 a car allowance compensation plan that can be processed by payroll is to use the task Maintain Compensation Elements.
Reference (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.
You are creating a compensation package.
What can you add to the compensation package?
Answer : B
A compensation package is a grouping of multiple compensation plans (salary, allowances, one-time payments, bonuses, etc.).
Workday allows you to bundle one-time payment plans into a package (e.g., relocation bonus, signing bonus).
Why not the others?
A . Retirement plan Benefits plans are not part of comp packages.
C . Calculated plan Standalone, not typically added to comp packages.
D . Future payment plan Not a Workday plan type.
Workday Pro Compensation -- Compensation Package Setup: Lists allowable plan types (salary, allowance, one-time payment).
Workday Community -- Offer Package Setup.
You want to display only relevant compensation plan sections during the Propose Compensation Change step of the Change Job business process, either for an internal job change or an internal hire.
What setting will enable Workday to determine the relevant plan sections to display based on worker eligibility and the security permissions for the user performing the compensation change?
Answer : B
The Dynamic Display option controls whether Workday shows only relevant compensation plan sections during transactions like Propose 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.
Workday Pro Compensation -- Dynamic Display Settings: Ensures streamlined Propose Compensation Change process.
A customer has several one-time payment plans within a tenant. They want to ensure that during a payment event a single one-time payment is submitted.
How should this be configured?
Answer : D
If you want to restrict employees so they can only submit a single one-time payment per payment event, you must ensure that Multiple One-Time Payments is not enabled in tenant setup.
When disabled, Workday enforces one 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).
Workday Pro Compensation -- Tenant Setup for One-Time Payments.