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An independent contractor agreement, also known as a 1099 agreement, allows a client to hire a contractor for specific tasks. Unlike employees, independent contractors do not have taxes automatically deducted from their payments and are responsible for paying them when due. This highlights a key legal difference between independent contractors and employees. Generally, independent contracting offers more flexibility but less stability. Over the past decade, the number of independent contractor positions has significantly increased, largely due to advancements in technology. Both employers and workers should consider various factors regarding eligibility before drafting an independent contractor agreement.