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An independent contractor agreement, also known as a 1099 agreement, enables clients to hire contractors for specific jobs. Independent contractors differ from employees as they must pay their own taxes without automatic deductions from their payments. This distinction highlights one of the many legal differences between the two. While independent contracting provides greater flexibility, it offers less stability. Over the past decade, the number of independent contractor positions has increased significantly due to advancing technology. Whether you are an employer or a contractor, it is crucial to evaluate whether the work qualifies for an independent contractor agreement before creating one.
