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| Section | Weight | Objectives |
|---|---|---|
| Variable Pay Program Settings | 11% - 20% | - Program configuration
|
| Integration and Reporting | < 10% | - System integration
|
| Bonus Calculation and Payout | 21% - 30% | - Compensation calculations
|
| Business Goals and Goal Weights | 11% - 20% | - Goal management
|
| Permissions and Security | < 10% | - Access management
|
| Variable Pay Form Administration | 11% - 20% | - Form management
|
| Employee History Data | 11% - 20% | - Employee data management
|
Question 1
Your client wants to award quarterly bonuses, where the quarters are aligned as follows: Q1: November
1-January 31. Q2: February 1-April 30. Q3: May 1-July 31. Q4: August 1-October 31. Bonuses are paid at the end of each quarter. Which of the following combinations of configuration options would work for this scenario?
A. One variable pay template with the bonus start date November 1 and end date October 31, and the bonus plan multiplier set to 25%
B. One variable pay template with the bonus start date November 1 and end date October 31; employee history is loaded with four records per employee (one per quarter) and bonus paid in fullon October 31
C. Four variable pay templates, with the bonus start and end dates aligned with the customer's dates and employee history to match
D. Four variable pay templates, with the bonus start and end dates aligned with "traditional" quarter dates and custom columns in the employee history to display the customer's dates
Question 2
A client has the following requirements: Executives have 3 business goals and NO individual performance metrics. Divisional VPs have 6 business goals and NO individual performance metrics. Directors have 6 business goals and individual performance weighted at 40%. Managers have 3 business goals and an individual performance multiplier. What is the minimum number of templates that can be configured to satisfy these requirements without the use of custom columns?
A. 1
B. 2
C. 4
D. 3
Question 3
Bonuses for all engineers at your client are calculated as follows: Basis (prorated salary × bonus target) × company achievement. Bonuses for all marketing staff at your client are calculated as follows: Basis × 50% individual achievement + 50% company achievement. How can this be implemented? Note: There are 2 correct answers to this question.
A. One variable pay program using Base × Business Performance × Individual Performance. Two bonus plans: one with the weighting 100% individual and the other 50% corporate and 50% individual.
B. Two variable pay programs: one using Base × Business Performance and using Base × (Business Performance + Individual Performance). The additive plan uses one business goal section weighted at
50%
C. One variable pay program that uses Base × (Business Performance + Individual Performance). Two bonus plans: one with the weighting 100% individual and the other 50% corporate and 50% individual
D. One variable pay program that uses Base × (Business Performance + Individual Performance). Two bonus plans: one with the weighting 100% corporate and the other 50% corporate and 50% individual.
Question 4
What is the difference between additive and multiplicative formulas for bonus calculation with respect to the impact of section weight, payout percent, and payout amount?
A. Additive formulas use payout percent, whereas multiplicative formulas use payout amount multiplied by section weights.
B. Additive formulas use section weights, whereas multiplicative formulas use payout percent.
C. Additive formulas use payout percent, whereas multiplicative formulas use section weights.
Question 5
What is included in the Bonus Payout Details report? Note: There are 3 correct answers to this question.
A. Bonus calculation for each employee
B. Multiple rows of payout for each employee
C. Total pay items for each employee
D. Eligibility criteria for each employee
E. Payout guidelines for each employee
Solutions:
| Question 1 Answer: A,D | Question 2 Answer: D | Question 3 Answer: B,D | Question 4 Answer: A | Question 5 Answer: A,B,D |
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