A stipend is a payment made to a trainee or learner for living expenses, unlike a salary or wages which are paid to an employee. Though the terms "stipend" and "salary" are often used interchangeably, the U.S. Department of Labor has specific criteria that must be met to pay a stipend.
Stipends used to pay for personal expenses such as travel and housing would be taxable income, however. The institution paying the stipend may withhold taxes from the stipend payments, but in some cases the IRS exempts students and scholars from Social Security and Medicare taxes.
Some schools offer stipends to help with specific expenses, such as a computer. These stipends may not be used to cover any other expenses. Some employers offer employees a stipend in addition to their regular pay, to cover some or all of the costs of health insurance, a gym membership or education for career or job development.
Depending on the type of work you do, you can receive hourly pay, a salary or pay per assignment. There is also a form of compensation called a "stipend" that is less common than hourly or salary pay as stipends are only paid in select situations. A stipend is a type of compensation that is similar to a ...
The term "stipend" encompasses a broad range of payments to students and trainees. Scholarships, fellowships, financial assistance grants and many other forms of aid can can be referred to as stipends. However, the purpose of the payment, rather than the term used to refer to it, will determine whether the payment is taxable.
A stipend is a regular fixed sum of money paid for services or to defray expenses, such as for scholarship, internship, or apprenticeship. It is often distinct from an income or a salary because it does not necessarily represent payment for work performed; instead it represents a payment that enables somebody to be exempt partly or wholly from waged or salaried employment in order to undertake ...
Stipend definition is - a fixed sum of money paid periodically for services or to defray expenses. How to use stipend in a sentence. ... [British], pay, pay envelope, paycheck, payment, salary, wage. Visit the Thesaurus for More . Examples of stipend in a Sentence. He receives a small stipend for his work as a research fellow.
Stipends are often used to pay interns, especially in nonprofit organizations, but if the intern performs work that cannot be considered educational training or if the nonprofit gains a measurable ...
"The employee receive wages and in addition to that HR are requesting to pay stipend for additional responsibility." Right - the stipend is an HR designation to the compensation so that the amount is not confused with a raise in regular salary but is compensation for assuming the additional duties or responsibility and when the duties or responsibility end so does the stipend.
While written primarily as guidance for for-profit business concerns, the Fact Sheet also applies to nonprofit workplaces that pay interns. Nonprofits that pay interns a stipend below minimum wage should be familiar with this Fact Sheet and document how their internship program satisfies the criteria.