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An independent contractor agreement is a contract that allows clients to hire contractors for specific jobs, also referred to as a 1099 agreement, named after the IRS form that contractors must file. Unlike employees, independent contractors do not have taxes deducted from their payments and are responsible for paying them at tax time. This highlights one of the key legal differences between contractors and employees. While independent contracting typically offers more flexibility, it comes with less stability. In recent years, independent contractor roles have increased significantly due to advancements in technology. Employers and workers should consider the eligibility of the work before creating an independent contractor agreement.
