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An independent contractor agreement is a contract that enables a client to hire a contractor for specific tasks, often referred to as a 1099 agreement, named after the IRS form that contractors must file. Unlike employees, independent contractors do not have taxes deducted from their payments and are responsible for paying their own taxes. This distinction highlights various legal differences between the two roles. Generally, independent contracting provides greater flexibility but less stability. In recent years, independent contractor positions have increased significantly, partly due to advancements in technology. Employers and workers should consider the eligibility of the work before creating an independent contractor agreement.
