The Alaska independent contractor agreement is between a client and a third (3rd) party seeking to provide services in exchange for payment. A contractor is hired on a one (1) time or per project basis and is not considered an employee (under AS 23.20.525). Therefore, upon payment by the client, the contractor will be required to pay their own Federal and State withholding taxes and will not receive any benefits that a traditional employee would receive. Upon an independent contractor agreement being signed by both parties, the document becomes legally binding.
Laws – AS 23.20.526