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An independent contractor agreement, also known as a 1099 agreement, allows a client to hire a contractor for specific tasks. Unlike employees, independent contractors do not have taxes deducted from their payments and are responsible for paying their own income taxes when due. This highlights a key legal difference between independent contractors and employees. Independent contracting offers greater flexibility but less job stability. Over the past decade, positions for independent contractors have increased significantly, largely due to advancements in technology. Both employers and workers should consider various factors when creating an independent contractor agreement, including the eligibility of the work involved.