To include compensation data in payroll results, you must run a compensation?

• A. True
• B. False
• C. Optional
• D. Never

Answer: (B)

In payroll, results are produced by running the payroll process, which uses the employee’s pay components as input. There isn’t a separate step called a “compensation run” that must be executed to include compensation data. As long as the employee has valid, active compensation data (base pay, bonuses, allowances, etc.) and they’re included in the payroll run, those amounts are incorporated into the payroll results automatically. So the statement that you must run a compensation to include compensation data is not accurate.

Briefly, true would imply an extra step is required beyond the normal payroll run, which isn’t how it works. Optional would suggest you could choose to run such a step, but there isn’t a separate compensation run to perform. Never would imply it can never be included, which isn’t correct.