I am an independent IT contractor currently making $95 per hour. My COBRA is about to expire, and I'm considering converting to W2 with the vendor (not W2 with the client). The rate offered by the vendor for W2 is $80 per hour, which includes health insurance ($1100 per month, which they pay 25%). Since my wife has 2 pre-existing conditions getting health insurance on my own would be ~$1500 per month.

The $95ph to $80ph rate reduction seems a bit high, but through research it's hard to find a common standard to apply when converting. I've seen that W2 should be current rate - 20%, but also have seen current rate - 7.65%. So confusing.

Anyone here have any advice?

Thanks.