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An independent contractor agreement enables a client to hire a contractor for a specific job and is often referred to as a 1099 agreement, named after the IRS form independent contractors must file. Unlike employees, contractors have no taxes automatically deducted from their payments and are responsible for paying them when due. This creates several legal distinctions between independent contractors and employees. While independent contracting tends to offer more flexibility, it provides less stability. The number of independent contractor positions has increased significantly over the last decade, partly due to evolving technology. Employers and workers should consider eligibility and other factors before finalizing an independent contractor agreement.
