What are stipends?

A stipend is a monthly amount offered by a company with an intended purpose. For example, you could offer a $20 monthly gym stipend to encourage your employees to be healthy and active. 

A few things to know:

  • Stipends aren’t dependent on an actual expense. So, if you do offer a gym stipend, employees don’t need to prove they use that money on a gym membership.
  • Stipends aren't tax-free. Providing a stipend is the same as providing a recurring taxable bonus; there's no tax benefit on this money.
  • Stipends aren't regulated the same way reimbursements are. Because there's no tax benefit to the amounts, you can provide any amount to any employee at any time, just like a bonus. This means some employees can receive a higher stipend amount and some employees can be excluded from the stipend benefit altogether.
  • Stipends can be offered at any time and don't need to be documented. So, you don't need to use PeopleKeep to offer a stipend; we just provide a simple tool to help. 

How to turn on the stipends feature

To start using stipends, enable the feature in your PeopleKeep account. Go to Company > Settings and click the Stipends tab. Flip the switch to turn the feature on.

How to set stipends up

Once the feature is enabled, there'll be a new option in the Benefits drop-down menu. Visit the Benefits > Stipends page to set up and manage this feature. 

To start a new stipend benefit, click the Sᴛɪᴘᴇɴᴅ button. Select the type of stipend you'd like to offer then follow the steps to define the amount and eligibility. 

Continued use

There's now a Stipends section on your Dashboard which shows you when it's time to pay out stipends. You can update your PeopleKeep account when you've paid them to have a friendly email sent to employees reminding them about the additional benefit you offer. 

Click the Mᴀɴᴀɢᴇ sᴛɪᴘᴇɴᴅs button on your Dashboard anytime you need to make changes. 

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