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An independent contractor agreement, also known as a 1099 agreement, enables a client to hire a contractor for specific jobs. Independent contractors do not have taxes deducted from their payments and must handle their own tax filings. This arrangement highlights key legal distinctions between independent contractors and employees. While independent contracting provides more flexibility, it also offers less stability. In recent years, the growth of independent contractor positions has outpaced overall workforce growth, largely due to technological advancements. Both employers and workers should consider important factors before drafting an independent contractor agreement, starting with the eligibility of the work.
