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An independent contractor agreement is a contract enabling a client to hire a contractor for a specific job, often referred to as a 1099 agreement, named after the relevant IRS form that contractors must file. Unlike employees, independent contractors do not have taxes deducted from their payments and must handle their own tax filings. This distinction illustrates significant legal differences between independent contractors and employees. While independent contracting offers greater flexibility, it typically provides less stability. The growth of independent contractor positions has outpaced overall workforce expansion over the past decade, driven by technological changes. Employers and workers should assess key considerations before creating an independent contractor agreement, including eligibility of the work.
