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An independent contractor agreement is a contract that permits a client to hire a contractor for a specific job and is sometimes referred to as a 1099 agreement, named after the IRS form needed for independent contractors' tax filings. Unlike employees, independent contractors do not have taxes deducted from their payments and are responsible for paying them when due. This arrangement highlights significant legal distinctions between independent contractors and employees, with contracting generally providing more flexibility but less stability. Over the past decade, the growth of independent contractor positions has accelerated due to evolving technology. Before creating an agreement, it’s crucial to assess the eligibility of the work.
