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An independent contractor agreement, also called a 1099 agreement, allows clients to hire contractors for specific jobs. Unlike employees, independent contractors do not have taxes automatically deducted from their payments and are responsible for filing their own taxes. This reflects one of several legal differences between independent contractors and employees. While independent contracting offers greater flexibility, it also provides less stability. Over the past decade, the number of independent contractor positions has increased significantly, partly due to advancements in technology. Before creating an independent contractor agreement, it’s important to evaluate whether the work is eligible for such an arrangement.