Any association that pays an owner for work done on the property, whether by cash or as a credit against assessments, must obtain workers compensation insurance. If the owner is injured in the course of performing compensated duties, the association's general liability policy will not cover any claims.
Additionally, the association is required by the IRS to report annual income of $600 or more and to issue a 1099 to the owner. Any form of compensation totaling $600 or more annually is taxable income to the owner.