A stipend is a payment that is made to an individual to support a training/learning experience. For a payment to be considered a stipend certain criteria must be met. Stipends are not considered wages if they are payment for a training/learning experience and not a payment for services rendered. Generally no Federal Withholding tax will be deducted.

Click here to learn more if you are a payroll coordinator and click here to learn more if you are a student.