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An independent contractor agreement allows clients to hire contractors for specific jobs and is sometimes referred to as a 1099 agreement, named after the IRS form required for contractors to file taxes. Unlike employees, independent contractors do not have taxes automatically deducted from their payments and must manage their own tax payments. This reflects one of the key legal differences between independent contractors and employees. Independent contracting generally provides greater flexibility but less stability. Over the past decade, the growth of independent contractor positions has accelerated, partly due to technological advancements. Before drafting an independent contractor agreement, it’s important to assess the eligibility of the work involved.