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An independent contractor agreement is a contract that allows a client to hire a contractor for a specific job, often referred to as a 1099 agreement due to the IRS form required for tax filing. Unlike employees, independent contractors do not have taxes automatically deducted from their payments and must handle their own tax payments. The distinction between independent contractors and employees includes various legal implications, with contracting generally offering more flexibility but less stability. Over the past decade, independent contractor positions have grown more rapidly than traditional employment, largely due to evolving technology. When creating an agreement, important considerations include the eligibility of the work.
