Can you hire a resident for a specific purpose?
Yes.
Do not waive any fees.
The proper way to do this would be to have them keep paying fees and the Association issue a check for the services rendered.
This provides protection for both parties.
The member has documentation that the condo fees were paid.
The Association has documentation of services being provided.
Taxes will have to be paid.
The Board does not want to open up the liability of not complying with IRS rules/regs. It would only take one disgruntled individual to report the issue to the IRS. They would reap a cash reward and the Association would reap an audit or two.
If you hire as an employee - then the Association provides a
W-2 If you hire as an independent contractor - then the Association provides a
1099-misc If you waive fees - then the Association provides a
1099-C The Association should hire the individual as an independent contractor otherwise there are additional risks and taxes the Association will have to pay.
See:
Understanding Employee vs. Contractor Designation from IRS website