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An independent contractor agreement allows a client to hire a contractor for a specific job and is often referred to as a 1099 agreement, named after the IRS form required for independent contractors for tax purposes. Unlike employees, independent contractors do not have taxes automatically deducted from their payments and must manage their own tax obligations. This highlights one of the key legal differences between contractors and employees. While independent contracting provides greater flexibility, it also comes with less stability. Over the past decade, the number of independent contractor positions has surged due to advancements in technology. Before creating an independent contractor agreement, employers should assess whether the work is eligible.
