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An independent contractor agreement is a contract enabling a client to hire a contractor for a specific job, often referred to as a 1099 agreement based on the IRS form required for contractors. Unlike employees, independent contractors do not have taxes automatically deducted from their payments and are responsible for paying their taxes. This distinction is one of many legal differences between independent contractors and employees. Independent contracting typically offers greater flexibility but less stability. Over the past decade, such positions have surged due to technological changes. Before drafting an independent contractor agreement, it's important to determine the eligibility of the work.