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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, named after the IRS form independent contractors must file. Unlike employees, independent contractors are responsible for managing their own taxes, as no taxes are automatically deducted from their payments. This distinction highlights significant legal differences between independent contractors and employees. While independent contracting offers greater flexibility, it typically comes with less stability. Over the past decade, positions for independent contractors have increased more rapidly than the general workforce due to evolving technology. Important considerations should be taken into account when preparing an independent contractor agreement.
