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An independent contractor agreement, also known as a 1099 agreement, allows a client to hire a contractor for specific tasks. Unlike employees, independent contractors do not have taxes automatically deducted from their payments and are responsible for filing their own taxes. This reflects a significant legal distinction between independent contractors and employees. Although independent contracting offers more flexibility, it comes with less stability. In recent years, the growth of independent contractor positions has outpaced the overall workforce, driven by technological changes. Both employers and workers should consider several factors before drafting an independent contractor agreement, starting with the eligibility of the work involved.