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An independent contractor agreement is a contract that allows a client to hire a contractor for a specific job, also known as a 1099 agreement. Unlike employees, independent contractors are responsible for paying their own taxes. This is just one of the many legal differences between independent contractors and employees. Independent contracting offers flexibility but less stability. In recent years, independent contractor positions have grown rapidly due to changing technology. Before creating an independent contractor agreement, consider if the work is eligible for independent contracting.