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An independent contractor agreement allows a client to hire a contractor for specific tasks, often referred to as a 1099 agreement, named after the IRS form independent contractors must file. Unlike employees, independent contractors do not have taxes automatically deducted from their payments and are responsible for paying them when due. This distinction is one of several legal differences between independent contractors and employees. Independent contracting generally provides more flexibility but less stability. Over the past decade, the number of independent contractor positions has increased significantly, driven by evolving technology. Employers and workers should consider eligibility when creating an independent contractor agreement.