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An independent contractor agreement permits a client to hire a contractor for a specific job, often referred to as a 1099 agreement, named after the IRS form required for independent contractors. This agreement differs from traditional employment as contractors do not have taxes automatically deducted from their payments and are responsible for their own tax payments. Independent contracting generally provides more flexibility but less stability compared to employment. In recent years, the number of independent contractor positions has increased significantly, largely due to technological advancements. It is important for both employers and workers to consider key factors when drafting an independent contractor agreement, including the eligibility of the work.
