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Can you use a stipend for anything?
Stipends can be used to cover the costs of commuting, meals, home office costs, insurance, wellness, living expenses, travel, cellphone or internet services and training and professional development, according to Hoppier, a stipend management platform.
What can you spend a stipend on?
Stipends aren’t intended to replace regular wages, and therefore their amounts may be quite low—just enough to cover certain costs. Generally, a stipend is designed to be used for expenses related to travel, housing, and food.
Is a stipend cash?
A stipend is a nominal sum of money paid to trainees, interns, or students to help cover basic costs while they receive career training. Stipends are offered to individuals rather than a salary. Interns, apprentices, fellows, and clergy are common recipients of stipends.
How are stipends paid out?
A stipend is a fixed amount of money provided to people who pursue unpaid work. Unlike a salary, a stipend is not a payment for hours worked or services provided. Stipends do not have to meet minimum wage requirements, and receiving a stipend does not make you an employee.
What can you do with your stipend money?
Team members can use their stipend to sign up for a dance class, set up fresh fruit delivery at home, or travel for a quarterly meeting — you set the rules. There are also practical benefits to using stipends. With a stipend system in place, it’s easier to make decisions about requests for funds.
Can a student loan stipend be used for?
A student loan reimbursement is an excellent recruiting and retention stipend for use when hiring new graduates. Other companies may offer a professional development stipend to help employees maintain or expand their skills. Teen Jobs That Pay Well. ] Are Stipends Taxable? It depends.
Can a stipend be used as a perk?
The primary exception is in academia, where it can be offered in lieu of wages for supporting student roles like research or student teaching. There are many ways an employer can use a stipend as a perk, benefit, incentive, recruiting or retention tool.
Do you get a stipend if you are an intern?
Students and interns should be classified as such. If the company identifies you as an employee, your stipend may be taxed and you won’t receive the full amount. And in this case, you’re entitled to receive the minimum wage and any overtime pay, if it applies. On the other hand, employees should ensure they aren’t considered trainees.