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An independent contractor agreement, also known as a 1099 agreement, allows a client to hire a contractor for specific jobs. Unlike employees, independent contractors don’t have taxes automatically deducted from their payments and are responsible for their own tax filings. This distinction reflects various legal differences between the two roles, with independent contracting generally offering more flexibility but less stability. Over the last decade, the number of independent contractor positions has increased significantly, largely due to evolving technology. Both employers and workers should consider essential factors relating to the eligibility of the work before creating an independent contractor agreement.
