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An independent contractor agreement is a contract that allows clients to hire contractors for specific jobs, often referred to as a 1099 agreement due to the IRS form required for tax filing. Unlike employees, independent contractors do not have taxes deducted from their payments and must handle their own tax obligations. This arrangement highlights significant legal differences between independent contractors and employees, offering greater flexibility but less stability. Over the past decade, independent contracting has grown faster than the general workforce, partly due to technological advancements. Employers and workers should consider key factors before creating an independent contractor agreement, including the eligibility of the work.
