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An independent contractor agreement allows a client to hire a contractor for specific jobs, sometimes referred to as a 1099 agreement due to the IRS form required for tax filing. Unlike employees, independent contractors do not have taxes automatically deducted from their payments and must manage their own tax obligations. This reflects one of the key legal differences between the two roles. Independent contracting typically offers more flexibility but less stability. Over the past decade, the number of independent contractor positions has increased significantly, partly due to technological changes. Before drafting an agreement, employers and workers should consider the eligibility of the work involved.
