An independent contractor agreement—also known as a 1099 agreement or freelance contract—is a contract between a client willing to pay for the performance of services by a contractor (person, sole-proprietor, or single-member LLC) who is willing to perform the services. Under the Internal Revenue Code (26 U.S.C. §3509), an independent contractor is not an employee, and the client hiring an independent contractor is not responsible for tax withholdings and payment of FICA taxes. An independent contractor agreement should be in writing, and will usually address issues such as the (1) scope of the work (description of the services); (2) terms and length of the project or service; (3) payment details, including fee deposits and billing procedure; and (4) confidentiality, non-solicitation, and dispute resolution clauses.

In Alaska, as in other states, an independent contractor agreement is a legal document that outlines the terms of a working relationship between a client and a contractor who is not considered an employee. Under federal law, specifically the Internal Revenue Code (26 U.S.C. §3509), independent contractors are distinct from employees in that they are responsible for their own tax withholdings and FICA taxes, and the client is not responsible for these obligations. In Alaska, it is advisable to have a written independent contractor agreement to clearly define the scope of work, duration of the project or service, payment terms, and other important provisions such as confidentiality, non-solicitation, and how disputes will be resolved. This helps ensure clarity and protect both parties' interests. While Alaska state statutes do not provide specific regulations for the content of independent contractor agreements, they must comply with relevant federal laws and state laws governing contracts, employment, and taxation.