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An independent contractor agreement, often referred to as a 1099 agreement, allows a client to hire a contractor for a specific job. Unlike employees, independent contractors are required to file form 1099 with the IRS and must pay their own taxes. This agreement offers greater flexibility but less stability compared to traditional employment. The rise in independent contractor positions is attributed to changing technology. Before creating an independent contractor agreement, consider the eligibility of the work and legal differences between contractors and employees.