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An independent contractor agreement is a contract that permits a client to hire a contractor for specific tasks, often referred to as a 1099 agreement due to the IRS form required for tax filing. Unlike employees, independent contractors do not have taxes automatically deducted from their payments and must handle their own tax obligations. This distinction, among others, highlights the legal differences between contractors and employees. Independent contracting typically offers more flexibility but less stability. Over the past decade, the prevalence of independent contractor roles has surged, largely due to technological advancements. It's crucial for employers and workers to consider various factors when drafting an independent contractor agreement.
