The Alabama subcontractor agreement is between a contractor that hires another company or individual, known as the subcontractor, to help or assist in providing services to a client. The agreement is solely between the contractor and subcontractor. The agreement specifically defines the subcontractor as a 1099 employee and therefore only payment is due by the contractor with no obligation to provide withholding or any other benefits.

State Definition (§ 34-8-1(c)) – “For the purpose of this chapter a “subcontractor” is defined to be one who constructs, superintends, or engages in the construction, alteration, maintenance, repair, rehabilitation, remediation, reclamation, or demolition of any building, highway, sewer, structure, site work, grading, paving, or project or any improvement in the State of Alabama where the cost of the undertaking is fifty thousand dollars ($50,000) or more under contract to general contractor as defined in subsection (a) or another subcontractor.”