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An independent contractor agreement allows clients to hire contractors for specific jobs and is often referred to as a 1099 agreement, named after the IRS form contractors must file. Unlike employees, independent contractors do not have taxes automatically deducted from their payments and must manage their own tax liabilities. This distinction highlights several legal differences between independent contractors and employees, with contracting generally offering more flexibility but less stability. In recent years, independent contractor roles have grown significantly, largely due to evolving technology. Before creating an independent contractor agreement, it is important to evaluate the eligibility of the work involved.
