Section 41-10-700 (Effective until May 18, 2013) Definitions.

Section 41-10-700

(Effective until May 18, 2013) Definitions.

As used in this division, the following words shall have the following meanings:

(1) DEPARTMENT. The Department of Revenue.

(2) EMPLOYEE. An employee as defined in the Internal Revenue Code as amended from time to time; however, any individual providing services to an employer on an hourly, part-time, full-time, salaried, or contractual basis shall also be considered as such for purposes of this division.

(3) EMPLOYER. An employer as defined in the Internal Revenue Code, as amended from time to time, which is either a general contractor, contractor, or subcontractor who primarily holds itself out for hire to the general public as a general contractor, contractor, or subcontractor and who receives more than five percent of its primary business from business described under either North American Industry Classification System (NAICS) Code 237 or 238 of the United States Department of Commerce as of January 1, 2009. This definition does not apply to or include residential home building and licensed residential home builders contracting for home building as defined in Chapter 14A of Title 34, or those specifically exempted under Chapter 14A of Title 34.

(4) FEE. The tax levied by this division.

(5) GENERAL CONTRACTOR. Any individual, person, corporation, limited liability entity, trust, association, or any other business enterprise other than home building projects by licensed residential home builders as defined in Chapter 14A of Title 34, or those specifically exempted under Chapter 14A of Title 34, that for a price, commission, fee, or payment undertakes to construct or superintend or engage in the construction, alteration, maintenance, repair, rehabilitation, remediation, reclamation, or demolition of any building, highway, sewer, structure, site work, grading, paving of any project, or any improvement in the State of Alabama where the cost of the undertaking is or is expected to be fifty thousand dollars ($50,000) or more shall be deemed and held to have engaged in the business of general contracting in the State of Alabama.

(6) SKILLED LABOR. Includes all labor or services performed by payroll workers directly engaged in construction operations at the location of any construction or maintenance site in Alabama. The term does not include labor or services performed by supervisory employees above the working foreman level.

(7) SUBCONTRACTOR. Any individual, person, corporation, limited liability entity, trust, association, or any other business enterprise performing work under contract to a general contractor, but not licensed residential home builders building homes as defined in Chapter 14A of Title 34, or those specifically exempted under Chapter 14A of Title 34.

(8) WAGES. The gross earnings paid by an employer to an employee, including all forms of compensation such as salaries, hourly payments, commissions, remuneration, dismissal pay, bonuses, and vacation and sick leave pay, prior to deductions for items such as Social Security contributions, withholding taxes, group insurance, union dues, and savings bonds.

(Act 2009-561, §1.)