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An independent contractor agreement is a contract that allows a client to hire a contractor for a specific job, also referred to as a 1099 agreement due to the IRS form required for independent contractors. Unlike employees, independent contractors do not have taxes deducted from their payments and must handle tax obligations themselves. This distinction highlights key legal differences between independent contractors and employees. While independent contracting offers greater flexibility, it also presents less stability. In recent years, the number of independent contractor positions has increased significantly, influenced by changes in technology. Employers and workers should consider various factors before drafting an independent contractor agreement, particularly eligibility for the work.