A stipend and a salary are both forms of compensation, but they work in different ways. While salaries are paid to employees for their work and time, stipends are paid to cover living expenses or other costs. Stipends are becoming a more common part of compensation packages, especially in competitive industries.
Both stipends and salaries have tax implications for both the employer and employee, and it’s important to understand the differences between the two when you’re evaluating a job offer.
This article will cover the differences between a stipend vs salary, including their purposes, tax implications, and suitability for different situations, so you can know what to expect.