What Is the Difference Between a Stipend and a Salary?

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Stipends are often monies paid to a worker or student for which taxes have not been deducted. Taxes are deducted from a salary before it is paid to an employee.

Salaried workers often receive a paycheck twice a month, and salary amounts are usually valid for a year at a time. The entire amount of a stipend is issued to a worker or student at the beginning of a job or academic study start date. In the case of international students, taxes are removed from the stipend before it is issued. Students who are not international have to pay quarterly estimated taxes to the Internal Revenue Service.