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An independent contractor agreement, also known as a 1099 agreement, allows a client to hire a contractor for a specific job. Unlike employees, independent contractors do not have taxes automatically deducted from their payments and must handle their own tax obligations when due. This distinction is one of many legal differences between contractors and employees. Independent contracting typically provides greater flexibility but less stability. In recent years, the number of independent contractor positions has increased significantly due to advancements in technology. Both employers and workers should consider various factors before creating an independent contractor agreement, including whether the work is eligible.
