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An independent contractor agreement allows a client to hire a contractor for specific work, often referred to as a 1099 agreement due to the IRS form required for independent contractors. Unlike employees, independent contractors do not have taxes deducted from payments and must handle their own tax obligations. This distinction highlights several legal differences between independent contractors and employees, including the flexibility and instability of contracting work. Over the past decade, independent contracting has grown significantly, partly due to technological advancements. When creating an independent contractor agreement, employers and workers should consider the eligibility of the work involved.