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…

The Maintain Compensation Elements task is the specific function within Workday used to create and manage individual compensation elements. A compensation element is a required component that acts as a bridge between a compensation plan (like a car allowance) and a payroll earning. Creating the element via this task is the foundational step that must be completed before the allowance plan can be correctly processed and paid through the payroll system.

A. Maintain Compensation Element Groups is used to organize existing compensation elements into logical sets for reporting or processing, not for creating a new element.

B. Map Compensation Elements to Payroll Earnings is a subsequent configuration step performed after the compensation element has already been created using a different task.

D. Edit Tenant Setup HCM is a high-level, foundational setup task for the entire HCM module and is not used for creating specific compensation components.

1. Workday Documentation

"Compensation Core Setup Guide": In the chapter on "Set Up Compensation Components

" the section "Steps: Set Up Compensation Elements" explicitly states: "To create a compensation element

use the Maintain Compensation Elements task." This confirms it is the primary task for creation.

2. Workday Documentation

"Payroll for the U.S. Configuration Guide": The section on "Earning and Deduction Configuration" details the process of linking compensation to payroll. It describes the Map Compensation Elements to Payroll Earnings task as the method to connect a pre-existing compensation element to a payroll earning

reinforcing that creation and mapping are separate tasks.