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An independent contractor agreement allows a client to hire a contractor for specific tasks and is often referred to as a 1099 agreement, named after the IRS form that contractors must file. Unlike employees, independent contractors do not have taxes automatically deducted from their payments and are responsible for paying their taxes when due. This arrangement highlights significant legal differences between contractors and employees. While independent contracting offers greater flexibility, it also comes with less stability. In recent years, such positions have grown faster than the overall workforce, largely due to technological changes. Before creating an independent contractor agreement, it’s important to assess the eligibility of the work involved.
