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An independent contractor agreement allows a client to hire a contractor for specific tasks and is sometimes referred to as a 1099 agreement, named after the IRS form required for independent contractors. Unlike employees, contractors do not have taxes deducted from their payments and must handle tax payments themselves. This highlights one of several legal differences between independent contractors and employees. While independent contracting offers more flexibility, it typically comes with less stability. Over the past decade, independent contractor roles have rapidly increased, partly due to advancements in technology. Employers and workers should carefully consider eligibility and other factors before drafting an independent contractor agreement.
