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An independent contractor agreement, also known as a 1099 agreement, allows a client to hire a contractor for a specific job. Unlike employees, independent contractors do not have taxes automatically deducted from their payments and must handle tax payments independently. This reflects one of the key legal differences between independent contractors and employees. While independent contracting offers greater flexibility, it also provides less stability. In recent years, the number of independent contractor positions has grown significantly due to advancements in technology. When creating an independent contractor agreement, it's essential to determine if the work is eligible.