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An independent contractor agreement allows a client to hire a contractor for specific jobs and is often referred to as a 1099 agreement due to the IRS form required for independent contractors. Unlike employees, independent contractors do not have taxes automatically deducted from their payments and must handle their own tax payments. This agreement highlights key legal distinctions between independent contractors and employees, with contracting offering more flexibility but less stability. The growth of independent contractor positions has outpaced the overall workforce in recent years, largely due to advancements in technology. Employers and workers should carefully evaluate various factors before creating an independent contractor agreement.
