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An independent contractor agreement, also known as a 1099 agreement, allows clients to hire contractors for specific jobs. Unlike employees, independent contractors are responsible for paying their own taxes, as no tax is automatically deducted from their payments. This distinction highlights key legal differences between independent contractors and employees. While independent contracting offers greater flexibility, it typically comes with less stability. In recent years, independent contractor roles have seen faster growth than traditional employment, driven by technological changes. Before creating an independent contractor agreement, it’s important to assess the eligibility of the work involved.