A stipend is a sum of money paid to a person to assist offset prices. It's commonly supplied to a person who's in training, inclusive of an intern.
Learn extra about stipends and who is probably anticipated to receive one.
What Is a Stipend?
A stipend is a fixed amount of money intended to offer financial assist to someone, in particular to help cover dwelling charges. It isn't always the same as a wage or salary provided to an employee, because it isn't always performance-based totally or hours-based totally.
Stipends aren't intended to replace normal wages, and therefore their quantities may be quite low—just sufficient to cowl sure costs. Generally, a stipend is designed to be used for fees associated with tour, housing, and meals.
How Stipends Work
Stipends are typically predetermined, fixed amounts, and indexed in policies installed region by means of faculties, schooling applications, or agencies offering education to personnel. They can be paid periodically, inclusive of weekly or monthly, or in a lump sum.
Who Receives a Stipend
Generally, stipends are paid for the subsequent:
- Wellness fees
Therefore, you'll regularly see interns, apprentices, and trainees get hold of a stipend to cover living fees at the same time as they're in education. Clergy may also get hold of a stipend in order that they do not ought to tackle an extra process to cover their expenses.
What Stipends Are Used For
Sometimes, stipends additionally may be offered to inspire certain sports. For example, educational institutions may additionally offer stipends that paintings like presents, to create incentives for researchers to further their work on certain initiatives, which includes writing books and scholarly articles, translating works, or decoding and studying amassed facts.
Some faculties offer stipends to help with particular brought prices, together with a laptop or different necessary system. Similarly, some employers provide employees a stipend similarly to their ordinary pay, to cowl a few or all of the fees of unique matters along with medical insurance, a health club membership, or continuing schooling for profession improvement. Sometimes businesses provide stipends to help an employee cover enterprise charges which includes food for clients.
If employers plan to offer interns a stipend rather than an hourly salary, they should consist of that facts on the commercial for the internship and reiterate it all through the interview.
If you agree with you might be eligible for a stipend, ask your employer if you are capable of receive one, and make sure you're given a written agreement acknowledging the stipend and whilst it will be paid.
You ought to inquire how a company's stipend pay procedure will paintings so that you can plan around the payments in case you need to. You may need to inquire about the conditions below which a stipend might not be paid to make certain you do now not do some thing to jeopardize price.
How Much Is a Stipend?
There is no set quantity for a stipend, and the quantity varies depending on what it is for. A stipend for an intern may be $500 a month, or it is probably enough to cowl hire and food, too. A college may provide a every year stipend of $30,000 for doctoral college students; a private company may offer its employees a $75 monthly stipend for a cellular cellphone.
Companies can decide a stipend quantity at their discretion—as long as the recipient is nicely labeled as a trainee or intern, now not as a regular employee. If they may be a everyday employee, they ought to be paid as a minimum minimum salary and can be eligible for time beyond regulation pay in the event that they paintings extra than 40 hours in per week.
However, a stipend may be considered taxable profits, so the recipient must take care to report it cautiously and declare it on their taxes if necessary. A tax expert will let you decide whether or not a stipend is taxable; the Internal Revenue Service (IRS) additionally has a tool to assist decide whether the money you obtained is taken into consideration taxable profits.
- A stipend is a set fee intended to assist offset fees.
- A stipend is probably paid to interns, trainees, or apprentices to help them with living expenses as they're gaining knowledge of.
- Employers may also pay stipends to help defray sure more charges together with gymnasium memberships.
- Stipends are normally taken into consideration taxable earnings.