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An independent contractor agreement allows a client to hire a contractor for specific work, commonly referred to as a 1099 agreement, named after the IRS form independent contractors must file. Unlike employees, contractors don’t have taxes automatically deducted from their payments and are responsible for paying their own taxes. This distinction highlights one of the many legal differences between contractors and employees. Independent contracting typically provides more flexibility but less stability. Over the past decade, the growth of independent contractor roles has outpaced the overall workforce, influenced by changing technology. Key considerations for creating an independent contractor agreement include eligibility for the work.