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An independent contractor agreement, also known as a 1099 agreement, is a contract that enables a client to hire a contractor for specific tasks. Unlike employees, independent contractors do not have taxes automatically deducted from their pay and are responsible for paying their own taxes when due. This reflects one of the many legal distinctions between independent contractors and employees. Generally, independent contracting provides more flexibility but less stability. Over the past decade, such positions have expanded much faster than the overall workforce, partly due to advancements in technology. Both employers and workers should consider various factors, including eligibility of work, before drafting an independent contractor agreement.
