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An independent contractor agreement, also known as a 1099 agreement, allows a client to hire a contractor for specific jobs. Unlike employees, independent contractors do not have taxes deducted from their payments and must handle their own tax obligations when due. This highlights one of the key legal differences between independent contractors and employees. While independent contracting offers greater flexibility, it also comes with less stability. The number of independent contractor positions has increased significantly over the past decade, partly due to technological advancements. Before drafting an independent contractor agreement, it's essential to assess whether the work is eligible.
