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An independent contractor agreement, also known as a 1099 agreement, allows clients to hire contractors for specific jobs. Unlike employees, independent contractors do not have taxes deducted from their payments and must file their taxes independently. This reflects broader legal differences between independent contractors and employees, with contracting typically offering more flexibility but less stability. Over the past decade, independent contractor roles have increased significantly, largely due to technological advancements. Important considerations before creating an independent contractor agreement include the eligibility of the work involved.