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An independent contractor agreement allows clients to hire contractors for specific jobs and is often referred to as a 1099 agreement, named after the IRS form required for independent contractors. Unlike employees, independent contractors do not have taxes automatically deducted from their payments and are responsible for paying their income taxes independently. This distinction highlights several legal differences between independent contractors and employees. While independent contracting offers greater flexibility, it generally comes with less stability. The growth of independent contractor positions has outpaced the overall workforce due to advancements in technology. Before creating an agreement, employers and workers should assess the eligibility of the work involved.