PRACTICE EXAM NEWEST ACTUAL EXAM COMPLETE
200 QUESTIONS AND CORRECT ANSWERS
Workday Payroll Practice Exam
Section 1: Payroll Setup & Core Concepts
1. In Workday Payroll, what is the purpose of the Pay Group?
A. Defines workers by their payroll schedule and frequency ✅
B. Groups employees by supervisory org only
C. Assigns costing allocations to workers
D. Determines benefit eligibility
Rationale: Pay groups determine how often payroll runs (weekly, biweekly,
monthly) and who belongs in each run.
2. Which Workday functionality determines who can initiate payroll-related
tasks?
A. Supervisory Organization
B. Business Process Security Policy ✅
C. Pay Component Group
D. Condition Rule
Rationale: Security policies control access to tasks such as Run Payroll,
Complete Settlement, etc.
3. Which of the following is NOT required to configure before processing
payroll?
A. Earnings and Deductions
B. Payroll Input
C. Supervisory Organization ✅
D. Period Schedules
Rationale: Payroll runs depend on pay components, input, and schedules,
but supervisory orgs are HR structures, not payroll-specific.
4. What are Period Schedules used for?
A. To track vacation balances
B. To define payroll periods and payment dates ✅
C. To assign costing allocations
,D. To control tax reporting
Rationale: Period schedules drive payroll frequency and define payroll
calendar windows.
5. In Workday, the Payroll Partner role typically has permission to:
A. Approve expense reports
B. Initiate and finalize payroll runs ✅
C. Submit time off requests
D. Manage benefit plans
Rationale: Payroll Partners manage payroll processes end-to-end.
6. Which configuration links earnings and deductions to workers?
A. Pay Component ✅
B. Cost Center
C. Location Hierarchy
D. Settlement Rules
Rationale: Pay components (earnings/deductions) are attached to workers
via eligibility rules.
7. Which task generates the final payslips for employees?
A. Run Settlement ✅
B. Create Payslip PDF
C. Run Retro Pay
D. Close Period
Rationale: The “Run Settlement” step generates payslips and triggers
disbursements.
8. In Workday, Worktags are used to:
A. Define payroll schedules
B. Assign costing allocations ✅
C. Limit reporting access
D. Enforce payroll compliance
Rationale: Worktags (cost centers, projects, grants) drive payroll
accounting.
9. When an employee changes pay effective two months ago, which payroll
process is triggered?
A. Run Initial Payroll
B. Retro Pay Calculation ✅
,C. Adjustment Journal
D. Manual Override
Rationale: Retro pay accounts for back-dated compensation changes.
10. Which payroll component allows you to bundle earnings/deductions for
reporting?
A. Pay Component Group ✅
B. Supervisory Org
C. Security Role
D. Org Assignment
Rationale: Pay component groups aggregate related components (e.g.,
taxable wages).
11. Payroll inputs can be entered:
A. Only by the Payroll Partner
B. Through self-service, integrations, or manual entry ✅
C. Only via EIB integrations
D. Exclusively in the year-end process
Rationale: Inputs can come from multiple sources, including managers and
integrations.
12. Which task closes out a payroll run?
A. Complete Payroll Settlement ✅
B. Payroll Input Audit
C. EIB Load
D. Calculation Override
Rationale: Settlement closes the run, produces payslips, and executes
payments.
13. What is the default calculation engine for payroll in Workday?
A. Rules Engine ✅
B. EIB Loader
C. Prism Analytics
D. Report Writer
Rationale: Payroll relies on the rules engine to calculate pay based on
configured logic.
14. An example of a deduction in Workday is:
A. Overtime Pay
, B. 401(k) Contribution ✅
C. Base Salary
D. Shift Differential
Rationale: Deductions reduce gross pay (e.g., retirement, benefits).
15. Which field determines whether an earning is taxable?
A. Eligibility Rule
B. Pay Component Attribute ✅
C. Org Assignment
D. Payroll Input Type
Rationale: Pay component attributes define taxable/non-taxable status.
Section 2: Earnings, Deductions & Taxes (Q16–30)
16. How are eligibility rules applied in payroll?
A. To determine if a worker qualifies for a specific pay component ✅
B. To restrict access to payroll reports
C. To validate settlement payments
D. To close period schedules
Rationale: Eligibility rules control assignment of pay components.
17. Which pay component setup ensures base pay continues across
periods?
A. Recurring earning ✅
B. One-time payment
C. Deduction component
D. Worktag costing
Rationale: Recurring components (like base salary) repeat every payroll.
18. In Workday, gross-to-net calculation is:
A. Total salary only
B. Total pay minus deductions and taxes ✅
C. Benefits enrollment
D. Settlement processing
Rationale: Payroll computes gross pay, subtracts deductions/taxes to get
net pay.
19. Which system automatically updates Workday with federal tax changes?
A. Workday Tax Updates ✅