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An independent contractor agreement is a contract that allows clients to hire contractors for specific jobs, often referred to as a 1099 agreement due to the IRS form required for tax filing by the contractor. Unlike employees, independent contractors do not have taxes automatically withheld from their payments and are responsible for paying them when due. This distinction highlights key legal differences between independent contractors and employees. While independent contracting typically offers more flexibility, it also comes with less stability. The rise of independent contracting has outpaced the overall workforce growth, influenced by evolving technology. Employers and workers should consider eligibility and other factors when creating an independent contractor agreement.