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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 that contractors must file. Unlike employees, independent contractors do not have taxes deducted from their payments and are responsible for paying their own taxes. This arrangement highlights the legal differences between independent contractors and employees, with contractors enjoying greater flexibility but less stability. The prevalence of independent contractor positions has increased significantly over the past decade, influenced by technological changes. Before creating an independent contractor agreement, it is essential to assess the eligibility of the work.