The words wage and stipend both mean compensation, but the terms of employment are different for each. If you have a choice, or an opportunity to earn one or the other, a good understanding of the differences is essential. Tax and legal implications arise when you earn either form of compensation. A stipend is a regular payment of money to an individual by the terms of a contract. Other benefits, such as food and housing, often accompany a stipend. Those earning a stipend aren't necessarily employees -- they may be agents, freelancers, interns or independent contractors.
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