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An independent contractor agreement, also known as a 1099 agreement, allows clients to hire contractors for specific jobs without automatic tax deductions from payments, as independent contractors are responsible for their own taxes. This type of agreement highlights key legal differences between independent contractors and employees, with contractors enjoying more flexibility but less stability. The growth of independent contractor positions has outpaced the overall workforce in recent years, largely due to technological changes. When creating an independent contractor agreement, employers and workers should consider the eligibility of the work involved.