Salary FYI

Stipend

Salary

A fixed, periodic payment made to interns, fellows, trainees, or clergy that is not considered a traditional salary and may be exempt from certain payroll taxes.

## Stipend

A stipend is a fixed, regular payment intended to cover living expenses or provide financial support during a training, fellowship, or internship period. Unlike wages, stipends are not necessarily tied to hours worked.

### Common Contexts

- Graduate research assistantships and fellowships.
- Medical residencies.
- Internship programs.
- Clergy and religious positions.
- Remote work or wellness stipends from employers.

### Tax Treatment (US)

Fellowship and scholarship stipends used for qualified education expenses are generally tax-free. Amounts for room and board are taxable. Employer-provided stipends (e.g., $100/month wellness stipend) are taxable as ordinary income. Stipend recipients typically receive a 1099 rather than a W-2.

### Stipend vs. Salary

| Feature | Stipend | Salary |
|---------|---------|--------|
| Employment relationship | Often none | Yes |
| FICA taxes | Often exempt | Required |
| Overtime eligibility | No | Depends on status |
| Minimum wage rules | May not apply | Apply |