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An independent contractor agreement allows a client to hire a contractor for a specific job and is often referred to as a 1099 agreement, named after the IRS form contractors must file. Unlike employees, independent contractors do not have taxes automatically deducted from their payments and are responsible for paying them. This reflects one of the key legal differences between independent contractors and employees. Independent contracting typically provides more flexibility but less stability. In recent years, the number of independent contractor positions has increased rapidly due to technological changes. Both employers and workers should consider the eligibility of the work before creating an independent contractor agreement.
