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An independent contractor agreement, also known as a 1099 agreement, allows a client to hire a contractor for specific jobs. Independent contractors differ from employees, primarily in tax handling; they are responsible for paying their own taxes, as there are no automatic deductions from their payments. This distinction is one of several legal differences between the two employment types. Generally, independent contracting provides more flexibility but less stability. The prevalence of independent contractor positions has increased significantly over the past decade, largely due to technological changes. It's important for both employers and workers to understand key considerations before creating an independent contractor agreement.
