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An independent contractor agreement, also known as a 1099 agreement, allows a client to hire a contractor for a specific job. Unlike employees, independent contractors do not have taxes automatically deducted from their payments and are responsible for paying them when due. This highlights one of the key legal differences between employees and independent contractors. Independent contracting typically offers more flexibility but less stability. Over the past decade, the number of independent contractor positions has increased faster than the overall workforce, partly due to changes in technology. Before creating an independent contractor agreement, it's essential to consider whether the work is eligible for this arrangement.