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An independent contractor agreement, also called a 1099 agreement, allows a client to hire a contractor for specific jobs. Unlike employees, independent contractors do not have taxes deducted from their pay and are responsible for paying taxes themselves when due. This illustrates one of the many legal differences between independent contractors and employees. Independent contracting typically provides greater flexibility but less stability. In recent years, the number of independent contractor positions has increased significantly, influenced by technological changes. Both employers and workers should consider key factors before drafting an independent contractor agreement, including the eligibility of the work.