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An independent contractor agreement, also known as a 1099 agreement, allows a client to hire a contractor for specific tasks. Unlike employees, independent contractors do not have taxes automatically deducted from their payments and must manage their own tax obligations. This distinction highlights key legal differences, including enhanced flexibility for contractors but reduced stability. Over the past decade, independent contractor roles have rapidly expanded due to technological changes. When creating an independent contractor agreement, employers and workers should assess the eligibility of the work involved.
