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An independent contractor agreement allows a client to hire a contractor for specific tasks and may also be called a 1099 agreement, named after the IRS form used by contractors for tax filing. Unlike employees, independent contractors are responsible for paying their own taxes, as taxes are not automatically deducted from their payments. This difference, among others, highlights the legal distinctions between independent contractors and employees. While independent contracting offers more flexibility, it also comes with less stability. Over the past decade, the number of independent contractor positions has increased significantly, driven by advancements in technology. Employers and workers should consider specific factors before creating an independent contractor agreement.