HCM Core

HCM Core practice questions, page 3 of 3, with answer review and explanations.

Question 11

Refer to the following scenario to answer the question below.An employee who works in Mexico City has a grade profile assigned to them with the following setup:Grade: 7 -Base Pay Elements: Base Pay, 13th MonthEligibility Rules: Location - Mexico CityCurrency: MXN -Frequency: Annual -Total Base Pay:Minimum: 700,000 MXN (40,961 USD)Maximum: 1,800,000 MXN (105,328 USD)Midpoint: 1,250,000 MXN (73,145 USD)You need to include a family allowance in Mexico employees' total base pay.How will you achieve this?

  1. Create a compensation element group with the family allowance. The compensation element group is not assigned to the grade, but is used for reporting purposes.
  2. Use the Put Eligible Earnings Override EIB to include the family allowance amount.
  3. Create a custom compensation basis for Mexico employees and include all salary plans, period salary plans, and the family allowance plan.
  4. Update the Base Pay Elements field on the Mexico grade profiles to include the family allowance compensation element.