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An independent contractor agreement allows a client to hire a contractor for specific work, commonly referred to as a 1099 agreement based on the IRS form independent contractors must file. Unlike employees, contractors do not have taxes withheld from their payments and must manage their own tax obligations. This represents one of several legal distinctions between independent contractors and employees. While independent contracting offers more flexibility, it often comes with less stability. Over the past decade, independent contractor roles have increased significantly, influenced by evolving technology. Both employers and workers should carefully assess the eligibility of work before creating an independent contractor agreement.