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An independent contractor agreement is a contract that allows a client to hire a contractor for specific tasks and is also 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 taxes themselves. This is one of several legal distinctions between independent contractors and employees. Generally, independent contracting offers more flexibility but less stability. Over the past decade, these positions have increased more rapidly than traditional jobs, partly due to technological advancements. Employers and workers should consider eligibility for the work before drafting an independent contractor agreement.
