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An independent contractor agreement is a contract that allows clients to hire contractors for specific jobs, also known as a 1099 agreement due to the IRS form required for contractors to file. Unlike employees, independent contractors do not have taxes automatically withheld from their payments and are responsible for paying their own taxes. This highlights key legal differences between independent contractors and employees. Generally, independent contracting offers greater flexibility but less stability. Over the past decade, independent contractor positions have risen more rapidly than traditional employment, largely due to technological changes. Employers and workers should consider specific factors before drafting an independent contractor agreement.