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An independent contractor agreement allows clients to hire contractors for specific job tasks, also known as a 1099 agreement. Unlike employees, independent contractors are responsible for paying their own taxes and do not have taxes automatically deducted from their payments. This legal distinction between contractors and employees provides greater flexibility but less stability. The rise of independent contractor positions has grown rapidly in the past decade due to advancing technology. Before finalizing an independent contractor agreement, consider if the work is eligible for independent contracting, the terms of payment, and the scope of the job.