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.

* During aChange Job, compensation may be recalculated, and plans withno eligibility criteriamay inadvertently be dropped.
* Thecompensation partnermustrestore the planafter the transfer usingPropose Compensation Change.
* This ensures the employee retains the allowance assignment without disrupting the change job process.
Why not the others?
* A. Roll Out Compensation Plans# Mass rollout, not individual fix.
* B. Plan Adjustment# Adjusts targets/amounts, not restores removed plans.
* D. Request Compensation Change# Typically for ad hoc changes; restoration during job change is handled viaPropose Compensation Change.
References:
Workday Pro Compensation - Change Job & Compensation Handling:Propose Compensation Change restores dropped plans.

* The taskRequest Compensation Changeis specifically forupdating salary or allowanceswithout affecting other worker details (position, job, location).
* This allows an ad hoc adjustment to salary while leaving the rest of the worker's profile unchanged.
Why not the others?
* A. Transfer/Promote/Change Job# Used when job details (title, location, org) change, not just pay.
* C. Request Grade Change# Alters grade, not salary directly.
* D. Request One-Time Payment# Temporary, ad hoc payments, not ongoing salary.
References:
Workday Pro Compensation - Compensation Changes Guide:Salary adjustments without job changes use Request Compensation Change.

* 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.
References:
Workday Pro Compensation - Dynamic Display Settings:Ensures streamlined Propose Compensation Change process.

* The allowance plan has adefault = $100 USD, plusprofiles for Toronto, Paris, Sydney.
* Dublin (Ireland) does not have a profile yet, so Workday defaults to theplan default value.
* Since the default is$100 USD, that is the value assigned at hire.
Why not the others?
* A. €0 EUR# No such rule; Workday always uses defaults when profiles are missing.
* C. €80 EUR# That's Paris profile, not Dublin.
* D. $0 USD# Incorrect because the plan default is not zero but $100.
References:
Workday Pro Compensation - Allowance Plan Defaults vs Profiles:If no profile exists for location, the default value applies.
Workday Community - Compensation Plan Defaulting Rules.