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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 deducted from their payments and must handle their own tax obligations. This reflects one of the key legal distinctions between independent contractors and employees. Independent contracting typically offers greater flexibility but less stability. In recent years, the number of independent contractor positions has increased significantly, partly due to technological advancements. When drafting an independent contractor agreement, it's essential to consider the eligibility of the work involved.