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An independent contractor agreement, also known as a 1099 agreement, allows a client to hire a contractor for specific tasks. Unlike employees, independent contractors do not have taxes deducted from payments and are responsible for filing taxes themselves. This highlights one of the many legal distinctions between independent contractors and employees. Generally, independent contracting offers greater flexibility but less stability. Over the past decade, the number of independent contractor positions has significantly increased, partly due to advancements in technology. Before creating an independent contractor agreement, it's important to evaluate whether the work is eligible.