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An independent contractor agreement is a contract enabling a client to hire a contractor for specific jobs and is often referred to as a 1099 agreement based on the IRS form that contractors must file. Unlike employees, independent contractors do not have taxes automatically deducted from their payments and must manage their own taxes. This highlights a key legal difference between the two classifications. Independent contracting generally provides more flexibility but less stability, and its prevalence has increased significantly over the past decade due to technological advancements. Whether you are an employer or a worker, it is important to evaluate whether the work is eligible before drafting an independent contractor agreement.