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taxes

Tax coverage by document type

4 min read
Document typeSales taxIncome tax withholdingOther
Invoice✅ per-line or invoice-wide, US state + zip-awareDiscount, shipping line
Estimate✅ same as invoiceCarried over on conversion
Receipt✅ shown as paid
Pay stub✅ federal + state + FICA + SUI/SDI where applicableYTD tracking
Bill of Sale❌ none (a BoS is a transfer doc, not a tax doc)State-specific notary block
Rental agreementLate fees, security deposit

Sales tax sources

We use the per-state base rate + local surtaxes maintained by Avalara TaxRates (refreshed monthly). For accuracy you can override any rate per line item.

Withholding sources

Pay stub withholding tables are updated quarterly from the IRS Pub 15-T and each state's official withholding tables.

Disclaimer: InvoDraft is a document tool, not a tax preparer. For complex situations (multi-state employees, sales tax nexus, gross-up calculations) please consult a CPA.

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