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An independent contractor agreement is a contract enabling clients to hire contractors for specific jobs, often referred to as a 1099 agreement due to the IRS form required for tax reporting. Unlike employees, independent contractors do not have taxes withheld from their payments and are responsible for filing them independently. This distinction highlights significant legal differences between independent contractors and employees. While independent contracting typically offers greater flexibility, it also provides less stability. The rise of independent contractor roles has accelerated over the past decade, largely due to technological changes. When creating an independent contractor agreement, it’s essential to assess the eligibility of the work involved.