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An independent contractor agreement is a contract enabling a client to hire a contractor for specific tasks. It's often referred to as a 1099 agreement, named after the IRS form independent contractors must file. Unlike employees, independent contractors do not have taxes automatically deducted from their payments and are responsible for paying them. This distinction highlights several legal differences between independent contractors and employees. While independent contracting typically offers more flexibility, it also comes with less stability. The growth of independent contractor positions has outpaced the overall workforce, partly due to technological advancements. When creating an independent contractor agreement, it's important to assess the eligibility of the work involved.