When used as nouns, scholarship means a grant-in-aid to a student, whereas stipend means a scholarship granted to a student. When used as verbs, scholarship means to attend on a scholarship, whereas stipend means to provide (someone) with a stipend.
Are stipends considered scholarships?
A scholarship/fellowship used for expenses other than qualified expenses is taxable income. Taxable scholarships are generally referred to as stipends and are payments for which no services are rendered or required.
Is a stipend an award?
Academic awards/stipends, commonly referred to as scholarships and fellowships, are made to, or on behalf of, degree candidates to pay for educational expenses. There are two types of educational expenses: qualified and nonqualified. All academic awards go through the financial aid system.
Is a stipend paid monthly?
Stipends are usually predetermined, fixed amounts, and listed in policies put in place by schools, training programs, or companies providing training to employees. They may be paid periodically, such as weekly or monthly, or in a lump sum.
Is a stipend considered salary?
Because stipends are awards and not wages for services, Social Security and Medicare taxes are not withheld. Stipends are still considered taxable income, though. It’s important to note that recipients of a stipend are not self-employed so you don’t need to pay self-employment taxes.
Do you get a w2 for a stipend?
A stipend is defined as a fixed sum of money paid periodically for services or to defray expenses. The fact that remuneration is termed a “fee” or “stipend” rather than salary or wages is immaterial. Wages are generally subject to employment taxes and should be reported on Form W-2, Wage and Tax Statement.
How much is a stipend taxed?
A stipend does not count as wages earned, so no Social Security or Medicare taxes get withheld. This means your employer will not withhold any taxes for you. However, a stipend does count as taxable income, so you will need to plan to set aside money for the taxes you will owe on your stipend at the end of the year.
How much is a stipend check?
Because they’re often used to cover expenses, the amounts paid to stipend recipients are relatively low. For instance, interns typically receive anywhere $250 to $500 or more per month. Of course, this isn’t a hard-and-fast-rule, as the pay does vary by employer.
Does a stipend have to be paid back?
If you are paid a stipend, it isn’t considered wages so you won’t pay Social Security or Medicare taxes on it. But, it still counts as taxable income for income tax purposes. … So, you need to set aside some of the money to pay the taxes you owe at the end of the year.
Do I have to pay back a stipend check?
The reality is that it’s not. Since that money was part of your financial aid package or loan, you will be required to pay that amount back, with interest. It can be used for housing, books, etc.
What is stipend salary?
A stipend is nothing but a payment made to a trainee or a person – who is a learner – for living expenses. It is unlike a salary or wages which an employer pays to an employee. … This amount paid is generally small, lower than a salary paid.
What is another word for stipend?
In this page you can discover 18 synonyms, antonyms, idiomatic expressions, and related words for stipend, like: pay, allowance, gratuity, earnings, hire, remuneration, compensation, emolument, fee, income and payment.
Are stipends legal?
However, under federal and some state wage and hour laws, stipends would not be lawful for workers except those lawfully classified as “interns” which we will discuss below. These laws are to protect workers and establish minimum employment standards, including minimum wage and overtime, based on hours worked.
How do you ask for a stipend?
Just request the other person that you are unable to manage as cost of living is very high, so if they could help you with an increase in stipend so that you can yourself able to meet your expenses and don’t become a burden on anyone. Just be more humble, polite and try to convince your point.
Can you pay hourly employees a stipend?
The FLSA also allows for wages to be paid in the form of a stipend, salary, or other non-hourly wage provided that, when converted to an hourly rate each workweek, it satisfies minimum wage and overtime pay requirements.
What is stipend pay in acting?
They often work as independent contractors, getting paid by the job instead of by the hour, for a sum that’s often a small stipend. Divide that stipend by the number of hours a project takes, and the wage might amount to a few dollars per hour.