core.clj

(ns employee-vs-contractor.core)

(def pct 100)

(defn health-insurance [health-insurance percent]
  "Calculates the value of health insurance coverage. Provide percent as [100]"
  (let [months 12.0]
    (/ (* months health-insurance percent) pct)))

(defn vacation [salary paid-days work-days]
  "Calculate value of vacation time."
  (/ (* salary paid-days) work-days))

(defn sick-day [salary sick-days work-days]
  "Calculate the sick day value."
  (/ (* salary sick-days) work-days))

(defn retirement [salary max-contribution matching vesting]
  "Calculate value of retirement contributions. max-contribution [Int ie 3] matching and vesting as 100 for immediate"
  (/ (* salary max-contribution matching vesting) (* pct pct pct)))

(defn reduced-taxes [extra-cost tax-bracket]
  "Calculate tax reduction based on deductible costs and tax bracket."
  (/ (* extra-cost tax-bracket) pct))

(def social-services-rate 0.0625)

(defn social-services-taxation [salary cutoff]
  (let [rate social-services-rate]
    (if (> salary cutoff)
      (* cutoff rate)
      (* salary rate))))

(def social-security-cutoff 97500.00)
(defn social-security [salary]
  (social-services-taxation salary social-security-cutoff))

(def  unemployment-income-cutoff 7000.00)
(defn unemployment [salary]
  (social-services-taxation salary unemployment-income-cutoff))

(def  medicare-tax-rate 0.0145)
(defn medicare [salary]
  (* salary medicare-tax-rate))

(defn contractor-equivalent-from-salary [s]
  (let [salary                     s
        health-insurance-cost      800
        health-insurance-percent   80
        pto-days                   14
        work-days                  230 ;; 240 days/yr minus 10 federal holidays
        sick-days                  5
        max-contribution           3 ;; max pct contribution for match
        matching                   100 ;; pct that they match per dollar
        vesting                    100 ;; 100 if vested immediately, 33 if 1/3 kept after 1 year
        deductible-costs           2000.0 ;; costs written off as contractor
        training-budget            5000.0
        training-days-paid         6
        tax-bracket                28]
    (-
     (+ salary
        (* training-budget (+ 1.0 (/ tax-bracket 100))) ;; convert training budget to post tax equiv
        (vacation salary training-days-paid work-days)
        ;; benefits of employee
        (health-insurance health-insurance-cost health-insurance-percent)
        (vacation salary pto-days work-days)
        (sick-day salary sick-days work-days)
        (retirement salary max-contribution matching vesting)
        (social-security salary)
        (unemployment salary)
        (medicare salary))

     ;; losses
     (reduced-taxes deductible-costs tax-bracket))))

(def employee-salary 90000)
(defn equiv-salary
  []
  (contractor-equivalent-from-salary employee-salary))

(equiv-salary)

; (defn backtrack-to-hourly [yearly]
;   (let [work-days     230
;         days-off      20
;         hours-per-day 8
;         ]
;     (/ yearly
;        (- work-days
;           days-off
;           paid-days)
;        hours-per-day)))

; (backtrack-to-hourly (equiv-salary))

; (defn hourly-to-yearly [hourly]
;   (let [paid-days     210
;         hours-per-day 8]
;     (* hourly
;        hours-per-day
;        paid-days)))

; (hourly-to-yearly 80.0)
;;(/ (equiv-salary) employee-salary)