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An independent contractor agreement, also known as a 1099 agreement, allows a client to hire a contractor for specific jobs. Unlike employees, independent contractors do not have taxes automatically deducted from their payments and are responsible for paying their own taxes. This distinction, along with other legal differences, contribute to the dynamics between independent contractors and employees. Independent contracting tends to offer greater flexibility but less job stability. Over the past decade, the number of independent contractor positions has increased significantly, driven by technological changes. Employers and workers should carefully consider various factors before drafting an independent contractor agreement, including the eligibility of the work involved.
