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An independent contractor agreement is a contract that allows clients to hire contractors for specific jobs, also known as a 1099 agreement due to IRS filing requirements. Unlike employees, independent contractors manage their own tax payments since taxes are not automatically deducted from their earnings. This arrangement highlights several legal differences between independent contractors and employees, with contracting offering more flexibility but less stability. In recent years, independent contracting has grown significantly, outpacing overall workforce growth, largely due to technological changes. Employers and workers should carefully consider various factors before creating an independent contractor agreement.