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.
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.