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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 their own taxes, unlike employees, whose taxes are deducted from paychecks. This distinction highlights various legal differences between independent contractors and employees. While independent contracting offers more flexibility, it typically provides less stability. Over the last decade, independent contractor positions have increased significantly, driven by technological changes. Employers and workers should be mindful of key considerations regarding independent contractor eligibility before creating such agreements.
