In such a case, provided that the temp worker is under an accountable plan and has provided receipts for the expenses to be reimbursed, then no, you do not have to issue a 1099. If, however, the temp worker incurred expenses under a non-accountable plan, and if reimbursement is equal to or more than $600 for the year, then you should issue a 1099. For definitions of accountable and non-accountable plans, see IRS Publication 463, page 28.
Have more questions? Submit a request