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An independent contractor agreement allows clients to hire contractors for specific jobs and is often referred to as a 1099 agreement, named after the IRS form independent contractors must file. Unlike employees, contractors are responsible for paying their own taxes, as no taxes are deducted from their payments. This arrangement highlights the legal differences between independent contractors and employees, with contractors enjoying more flexibility but less stability. The growth of independent contractor positions has outpaced overall workforce growth due to evolving technology. Both employers and workers should consider key factors when drafting an independent contractor agreement, including eligibility of the work.