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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 automatically deducted from their payments and are responsible for paying them when due. This reflects one of the many legal distinctions between independent contractors and employees. While independent contracting offers greater flexibility, it typically comes with less stability. Over the past decade, the number of independent contractor positions has increased rapidly, partly due to advancing technology. Both employers and workers should carefully consider various factors before creating an independent contractor agreement, including the eligibility of the work.