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Question#1

Refer to the following scenario to answer the question below.
A company pays its employees a monthly allowance. Plan targets are dependent on plan profile eligibility rules. There are 100 different types of plan profiles, each with a specific target amount for the eligible population.
Sample plan profile eligibility criteria include:
Job Family = Human Resources $50 USD
Job Family = Sales $70 USD
Job Family and Country = Human Resources / Australia $78 AUD Job Family and Country = Sales / Australia $110 AUD
The HR administrator has made some changes to the Sales job family. The job family now contains the job profile Sales Analyst.
When accessing the Employee Compensation Audit report, what column will highlight the allowance plan for the Sales Analyst?

A. This plan won't appear on the report

B. Assigned Eligible Compensation Components

C. Unassigned Eligible Compensation Components

D. Assigned Ineligible Compensation Components

Explanation:
The Employee Compensation Audit Report highlights mismatches between eligibility rules and actual assignments.
Since Sales Analyst is part of Sales job family but eligibility rules may not yet reflect this new job profile, the allowance plan appears under Unassigned Eligible Compensation Components → meaning the employee is eligible but has not yet been assigned the component.
Why not the others?
A. Won’t appear → It will appear, because Sales job family has a profile.
B. Assigned Eligible Compensation Components → Only if already assigned.
D. Assigned Ineligible Compensation Components → Not correct, because Sales Analyst job profile makes them eligible.
Reference: Workday Pro Compensation C Audit Reporting: Explains difference between Assigned Eligible, Unassigned Eligible, and Assigned Ineligible.
Workday Community C Compensation Audit Report Usage.

Question#2

What does the Gross Up checkbox on the one-time payment plan indicate?

A. You want Workday to show the taxes to the user when requesting a one-time payment.

B. You want Workday to require a compensation partner to manually update the gross up amount when requesting a one-time payment.

C. You want Workday to apply taxes on the one-time payment.

D. You want Workday to automatically adjust the one-time payment so the employee receives the full amount after taxes.

Explanation:
Gross Up = Adjusting a payment so that after tax deductions, the employee takes home the intended net amount.
Example: If you want an employee to net $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.
Reference: Workday Pro Compensation C One-Time Payment Plan Setup: Gross Up ensures net payment equals requested amount.
Workday Community C Gross Up Functionality.

Question#3

You have a seniority dynamic calculated plan to increase the amount of the plan every three years of an employee's employment. An employee reaches their sixth anniversary.
What do you need to do to make sure this employee's plan updates with the new amount?

A. You need to create a custom audit report to identify employees who reach their anniversary, and then submit a Request Compensation Change to run the calculation and update the amount for the employee.

B. You need to set up the Schedule Automatic Step Progression task so Workday is on schedule to process the calculation on the anniversary and change the amount for the employee.

C. You need to schedule a Mass Operation Management task to evaluate and update anyone assigned to the dynamic plan.

D. You do not need to do anything. Workday will check daily and automatically change the amount for the employee.

Explanation:
A seniority dynamic calculated plan automatically adjusts based on worker attributes such as length of service.
Workday evaluates dynamic calculations daily, ensuring that once an employee reaches their 3-year, 6-year, or other milestone, the plan amount updates automatically without manual intervention.
Why not the others?
A. Audit report + Request Compensation Change C Unnecessary; dynamic plans do not require manual updates.
B. Schedule Automatic Step Progression C That applies to step progression plans, not dynamic calculated plans.
C. Mass Operation Management C Used for bulk updates, but not required here because Workday auto-updates dynamic plans.
Reference: Workday Pro Compensation C Dynamic Calculated Plans Guide: Dynamic plans are self-updating based on employee data, recalculated daily.
Workday Community C Dynamic Plan Functionality: Confirms no manual action is needed for anniversary-based increases.

Question#4

Refer to the following scenario to answer the question below.
A company has several configurable compensation bases established in their system:
Total Cost (India): Qualifies Indian employees and includes all salary plans, period salary plans, allowance plans, bonus plans, and retirement savings plans; only 50% of their total compensation can be used toward their salary plan.
Total Compensation Non-Sales: Qualifies all full-time employees not in sales and includes all salary plans, allowance plans, bonus plans, and calculated plans.
Total Compensation Sales: Qualifies all full-time sales employees and includes all salary plans, allowance plans, and commission plans.
Total Pay (Mexico): Qualifies Mexican employees and includes all salary plans, period salary plans, and allowance plans.
Salary and Seniority: Qualifies all employees and includes all salary plans and the specific seniority calculated plan.
The configurable compensation bases have the following ranking:
10 Total Cost (India)
20 Total Compensation Non Sales
30 Total Compensation Sales
40 Total Pay (Mexico)
Salary and Seniority is unranked
You must ensure Indian employees keep their salary plans at 50% of their total amount.
What should you configure on the Total Cost (India) Compensation Basis?

A. Create and assign a fixed compensation basis.

B. Only include compensation plans. Remove retirement plans.

C. Select the Manage Basis Total checkbox and enter a salary plans maximum of 50.

D. Move the compensation basis ranking to 50.

Explanation:
For Total Cost (India), the requirement is that only 50% of total comp should be allocated toward salary plans.
This is achieved by using the Manage 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.
Reference: Workday Pro Compensation C Configurable Compensation Basis: Manage Basis Total allows control over contribution % for plan categories.
Workday Community C India Compensation Setup Example.
✅ Final Verified Answer
C. Manage Basis Total with 50% salary maximum.

Question#5

Refer to the following scenario to answer the question below.
An allowance plan has a default value of $100 USD.
The plan has three profiles:
$110 CAD - all Toronto employees are eligible
80 EUR - all Paris employees are eligible
$120 AUD - all Sydney employees are eligible
You want to give employees in Dublin, Ireland 90 EUR in the allowance.
How can you ensure that employees in Ireland receive the correct localized amount during hire without affecting the rate for employees hired in the US?

A. Use the Edit Allowance Plan task and add a 90 EUR plan profile for Ireland.

B. Use the Request Compensation Change business process and update the amount to 90 EU

C. Use the Set Up Allowance Plan Adjustment task and select the No Override checkbox.

D. Use the Set Up Allowance Plan Adjustment task and update the plan default value to 90 EU

Explanation:
The correct way to give Dublin employees 90 is to add a new plan profile specific to Ireland.
Profiles localize allowance values by country/region, ensuring correct defaults without disrupting global defaults.
Why not the others?
B. Request Compensation Change → Manual, per employee, not scalable.
C. Set Up Allowance Plan Adjustment C No Override → Adjustment applies to default, not region-specific.
D. Update plan default value → Would wrongly affect US and all other non-profile employees.
Reference: Workday Pro Compensation C Allowance Plan Profiles: Profiles localize compensation by currency/location.
Workday Community C Setting Profiles in Allowance Plans.

Workday Pro Compensation Online Practice Questions

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Question#3

Question#4

Question#5

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