TaxGraph: Payroll Tax Config‑as‑Code

E-commerce Platforms
🔥
10/10
Demand Score
Mistakes in multistate/local tax configs cause under/over‑withholding, penalties, and employee escalations—especially with hybrid work creating nexus and reciprocity complexity.
🌊
8/10
Blue Ocean
Competition Level
💰
$750-6k
Price/Month
Predicted customer spend
⏱️
14 days
Time to MVP
Difficulty: Hard

The Problem

Inflexible User and Staff Management

Competitor Landscape

  • Symmetry Software (Payroll Tax Engine)
  • ADP SmartCompliance
  • Greenshades
  • Avalara (adjacent)
  • Sovos (adjacent)

Must-Have Features for MVP

Jurisdiction knowledge graph with versioning and effective dates
Config compiler targeting top payroll platforms
Hybrid work day‑count tracker with privacy controls
Automated regression tests and sandbox calc runner
Change‑diff alerts with one‑click apply/rollback
Nexus/registration readiness checker
What‑if scenario planner for new locations
Audit logs suitable for regulators and internal audit

⚠️ Potential Challenges

  • Continuous statutory change management
  • Edge cases (reciprocity, SUI wage base resets, locality overlays)
  • GPS/location privacy and consent
  • Mapping the same rules into heterogeneous vendor schemas

Risk Level: High

🎯 Keys to Success

  • Zero penalty quarters post‑deployment
  • <2 hour turnaround from statute update to config diff
  • >90% automation on new‑hire tax setup
  • Seamless exports to major payroll vendors

Ready to Build This?

This hard-difficulty project could be your next micro-SaaS success.