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An independent contractor agreement is a contract that enables a client to hire a contractor for specific tasks. Also referred to as a 1099 agreement, it derives its name from the IRS form that independent contractors must file. Unlike employees, independent contractors are responsible for managing their own tax payments, as taxes are not automatically deducted from their earnings. This distinction is one of several legal differences between independent contractors and employees. While independent contracting offers greater flexibility, it also entails less stability. The demand for independent contractor roles has surged in the past decade, largely due to advancements in technology. Employers and workers should consider specific factors when drafting an independent contractor agreement.