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An independent contractor agreement allows a client to hire a contractor for a specific job and is also referred to as a 1099 agreement, named after the IRS form independent contractors must file. Unlike employees, independent contractors do not have taxes automatically deducted from their payments and are responsible for paying taxes themselves. This highlights many legal differences between contractors and employees. While independent contracting offers greater flexibility, it often comes with less stability. The growth of independent contractor positions has outpaced the overall workforce in recent years, largely due to changing technology. Before creating such an agreement, employers and workers should consider whether the work is eligible.
