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An independent contractor agreement, also known as a 1099 agreement, allows a client to hire a contractor for specific tasks. Independent contractors are responsible for paying their own taxes, unlike employees who have taxes deducted automatically. This highlights one of the key legal differences between independent contractors and employees. Generally, independent contracting offers more flexibility but less stability. Over the past decade, independent contractor positions have surged in growth, partly due to technological changes. Both employers and workers should carefully consider various factors before creating an independent contractor agreement, including whether the work qualifies for such an arrangement.