The Alaska subcontractor agreement allows someone to hire another company or individual, known as the ‘subcontractor’, in order to provide services on a 1099-employee basis. This type of arrangement is common in construction where a general contractor may hire subcontractors (e.g. roofers, plumbers, electricians, etc.) in order to help with specifics parts of the larger project. This agreement is solely between the hiring party and the subcontractor. A subcontractor is not considered an employee and upon signing the agreement acknowledges this fact.
State Definition (AS 08.18.171(4)) ” – “contractor” means a person who, in the pursuit of an independent business, undertakes or offers to perform, or claims to have the capacity to perform, or submits a bid for a project to construct, alter, repair, move, or demolish a building, highway, road, railroad, or any type of fixed structure, including excavation and site development and erection of scaffolding; “contractor” includes a general contractor, builder, mechanical contractor, specialty contractor, and subcontractor.”