If your association pays any owner or Board member for services performed for the association, the Board must secure workers compensation insurance coverage for any accidents or injuries sustained while those services are being performed. The association's general liability insurance will not cover any individuals who are being paid, only those acting in a volunteer capacity.
Income earned ($600 or more) is also taxable and must be reported to the IRS. The Board should secure a completed Form W-9 from any paid owner/Board member. A Form 1099-MISC should be completed and delivered to the recipient by January 31. Government copies and Form 1096 must be filed by February 28.