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An independent contractor agreement is a contract that allows a client to hire a contractor for a specific job. It is also known as a 1099 agreement, named after the IRS form that contractors must file. Unlike employees, contractors do not have taxes automatically deducted from their payment and must pay them on their own. This is just one of the many legal differences between contractors and employees. Contracting generally offers more flexibility but less stability. In recent years, contractor positions have grown rapidly due to technological changes. Employers and workers should carefully consider the terms of an independent contractor agreement before finalizing it.
