Free Workday Workday-Pro-Compensation Practice Exam with Questions & Answers

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.

In Workday, when you set anActual End Dateon a compensation plan, the plan remains activethrough that date.

Workday automaticallyremoves the plan the day afterthe entered actual end date.

Example: If Actual End Date = March 31, the plan is removed effectiveApril 1.

Why not the others?

B. Last day of the month +1→ Too restrictive; not always tied to month-end.

C. On the actual end date→ Wrong; the plan is validthroughthe end date.

D. Last day of the pay period +1→ Not relevant; tied to end date, not pay periods.

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.

Guideline warningsin Workday Compensation are configured at theprimary compensation basis pay rangelevel.

These warnings alert HR/Managers if an entered amount isoutside the allowed range or guideline thresholds(e.g., 90%–110% of midpoint).

They act as soft controls for ensuring compliance with comp policy.

Why not the others?

A. Position in range→ This is a calculation, not a configuration point.

B. Compa-ratio→ A metric comparing pay to midpoint; doesn’t hold guideline warnings.

D. Segment range→ Related to segment-based ranges in variable comp, not base pay packages.

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.

After creating a newallowance plan, you must assign it to all employees who qualify.

TheRollout Compensation Plans to Employeestask is the standard Workday process that mass-assigns plans to all workers who meet the eligibility rules.

This ensures bothcurrent and future eligible employeesreceive the plan automatically.

Why not the others?

B. View Compensation Plan Rollout Process→ Monitoring tool, not an assignment process.

C. Compensation Plan Assignment Audit→ Audit/reporting only, does not assign.

D. Employee Compensation Plans – Allowance report→ Reporting only; still requires manual actions.

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.

Employees managed byManage Basis Total (MBT)require theirprimary compensation basis totalto remain unchanged when allowance plan adjustments are made.

By selectingRetain Basis Total for MBT Employees, Workday keeps the overall basis constant and reallocates other plans in the MBT calculation instead of increasing the total.

Why not the others?

A. Clear MBT checkbox→ Would remove MBT management completely.

C. Clear Retain Basis Total→ Opposite of required behavior.

D. Adjust to New Defaults→ Updates values, but doesn’t enforce retention of MBT total.

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.

The scenario describes acompensation partnerbeing able to assignany allowance plan, even when the employee isnot eligible.

This is controlled by thesecurity 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.