What is the purpose of the compensation element?

Acompensation elementin Workday is the foundational link between acompensation plan(e.g., salary, bonus, allowance) andpayroll processing.

When you assign a compensation plan (like a car allowance, bonus, or salary plan), Workday requires acompensation elementthat directly maps to apayroll earning code.

This ensures that the pay component flows into payroll correctly, appears on pay slips, and is taxable/deductible as designed.

Why not the others?

B. Requisition compensation– Job requisitions use compensation packages for recruiting, but elements are not tied to requisitions.

C. Eligibility rules– Eligibility determineswhocan receive the plan, not the element itself.

D. Benefit deductions– Those are handled bybenefit deduction elements, not compensation elements.