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An independent contractor agreement is a contract enabling a client to hire a contractor for specific tasks, often referred to as a 1099 agreement, named after the IRS form contractors must file. Unlike employees, independent contractors manage their own tax payments, as no taxes are deducted from their pay. The distinction between independent contractors and employees includes various legal aspects, with contracting typically offering more flexibility but less stability. The rise of independent contractor roles has accelerated in the past decade, driven by technological advancements. Both employers and workers should carefully assess certain factors before drafting an independent contractor agreement.
