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In this video, Erin from Time Saving Templates addresses a common question regarding the variable compensation bonus template. She highlights the specific worksheet available in the human resources spreadsheets and explains how to use the template. Users must fill in the green cells, while the white cells are optional. The gray cells are set to automatically calculate bonus payouts. Erin also discusses the process of managing input from different managers when distributing the file for their input, emphasizing the need for consolidation of results once the managers return their files.