Accounts Payable Authorization For Direct Deposit: Fill & Download for Free

Great question - because there are a lot of misconceptions about this.First of all, Presidential salary is currently $400,000 per year, plus a $50,000 expense account, a $19,000 entertainment account, and a $100,000 travel allowance, for a grand total of $569,000 per year. The travel allowance is non-taxable; the other three parts of the salary are taxable.The $400,000 base salary is payable in four installments per year of $100,000 each. Like any employee in either the public or the private sector, there are deductions for, among other things, Federal income tax withhold. The type and nature of such deductions may depend on a number of factors.The other parts of the presidential compensation package are not actually distributed as salary, but expenses in each of the three areas are deducted from the annual allotment. At the end of the year, any leftover funds in each of the three accounts are recaptured and placed into escrow accounts held within the Executive Office of the President.When Trump was running for president, he often claimed that he would not take a salary, and as president he continues to claim that he takes no salary. Many of his supporters make much of the fact that he claims to donate his salary back to the government, disbursing it to various agencies within the Federal government. However, like so much else Trump says, this claim is not entirely true. The US Constitution requires that the president be compensated, and under Federal law, all government employees - even as president, he is an employee - MUST be paid. All salaries are paid via Direct Deposit, into the financial institution(s) designated by the employee; there are no paper paychecks.In Trump’s case, therefore, he is paid via Direct Deposit; if he chooses to donate his salary, or some portion thereof, he must do this as a separate transaction; in other words, he would need to have a check drawn on his bank, or to make similar arrangements for such a donation.However, it’s not quite that simple. Government agencies cannot simply accept cash donations. It is easy to understand why, too; such donations may pose a conflict-of-interest, or may even be viewed as a bribe. Furthermore, for budgetary reasons, donations must be carefully documented and all funds accounted for.Since Congress has the sole “power of the purse,” Congress must authorize receipt and disbursement of donated funds. In other words, if Trump chooses to make a donation to a specific government agency, Congress must, by resolution, vote to accept the donation. Even so, the money does not go directly to the agency specified - all donated funds go into the general fund and the authorized amount is then transferred from the general fund to the specific agency. Therefore, Congress has to approve acceptance of the donation, as well as the disbursement. It also must be said that, although Trump has presented mock-up checks to various agency since he has been in office, these have taken place at irregular times, which begs the question of whether he’s actually donating his salary at quarterly intervals, as some would have us believe. Yet, in all fairness, Trump is not REQUIRED to donate his salary; he may donate as much or as little as he may wish - within certain guidelines, of course - and may publicize such donations, or not - the choice is his.From time to time, Trump has claimed - falsely - that he is the first president since George Washington to have not taken a salary. George Washington donated his $25,000 annual salary, though he used some of it for travel expenses. Herbert Hoover, a multi-millionaire, divided his $75,000 annual salary among a number of charities, and he also gave a portion of it to his staff. John F. Kennedy, who had inherited a multi-million dollar trust fund, also donated his $100,000 salary to charities, but he retained the $50,000 entertainment allowance. Mr. Kennedy had also donated his salary during his 14 years as a member of Congress.

They can take the routing number and account number, print a new check, fill it in, and spend your money. Of course, if they make it payable to themselves and deposit it in a bank account using their real identity, they will get caught quickly.Did you know that an authorization for direct deposit includes the authorization for direct withdrawal? That’s supposed to be so your employer can correct “errors”. It has been misused for other reasons. The numbers on the check are sufficient for direct withdrawal.A voided check is commonly requested when direct deposit is being set up. The numbers are more likely correct than any handwritten version given by an employee to HR, and the account probably belongs to the employee. It’s fine if you trust your employer not to withdraw money even when you and the employer are not getting along well.

You will.After the 2008–09 bailout debacle, the Dodd-Frank legislation vowed “no more taxpayer bailouts”. G20 monetary authorities have signed on. So next time the banks fail, creditors will be bailed in to bailout their failed banks.You — the deposit account customer — are your bank’s creditor. Your bank owes you base money — cash and reserves, the bank’s “liquidity” — in the amount of your deposit account balance, which is the bank’s balance sheet deposit liability. But failed banks can’t pay the deposit liabilities they owe. So your deposit account balance is going to be bailed in, as an alternative to letting your bank collapse in bankruptcy, in which case your deposit account balance would be simply written off as the unpayable debt of a bankrupt debtor.Commercial banks — depository institutions — are not actually in the money-lending business. Banks create the money they lend. It’s not “money”, exactly. It is a deposit account customer’s money asset and the bank’s money liability, that is payable in base money (cash and reserves) by the bank to the customer.Banks are in the credit creation and debt monetization business. Government debtors issue interest-bearing bills, notes, bonds: “bond” debt. Private debtors issue interest-bearing mortgage debt, student loan debt, car loan debt, credit card debt, line of credit and overdraft debt, small business debt, corporate debt, institutional debt: and commercial banks issue new deposit account credit to “pay for” their purchases of the debtors’ new interest-bearing loan account balances and bond debts.“Banking” is a balance sheet accounting business. It just happens that the liabilities issued by banks “are money”. Sellers of stuff accept payment in bank deposits, so the deposits (electronic digits in banking system accounting software) “are money”.Banks issue deposit liabilities (money) to purchase earning assets (debts).To make a $1000 loan, the debtor signs a $1000 promissory note, promising to repay the $1000 and to pay the interest. The bank purchases that note, which it holds as its interest-earning balance sheet debt-asset. To pay for its asset purchase, the bank types a $1000 credit into the borrower’s deposit account.The credit adds $1000 of spendable, investible credit-money into the debtor’s deposit account. The promissory note adds $1000 to the debtor’s loan account balance. The bank types +$1000 into the debtor’s deposit account, and -$1000 into the debtor’s loan account, which creates $1000 of new money and $1000 of new devbt.The debtor’s new deposit account balance is the bank’s new balance sheet deposit liability. The debtor’s new loan account balance is the bank’s new balance sheet earning asset. Debtors and their creditor-banks create new deposit account money and new loan account debt by “expanding bank balance sheets” with new deposit liabilities (money liabilities; payable in government-printed cash money, and in central bank-created reserve account balances) and = new debt-assets.Debtors spend the deposit account money and owe the loan account debt and bond debt. Payees — recipients of the debtors’ spending of the new money — earn the new money as “their” deposit account balances. So borrowers/spenders “owe” all the loan account and bond debt, and payees/earners “own” all the deposit account money supply.Debtors need to earn all of the deposit account money supply “back”, to repay their bank loans. But most of the money supply ends up being earned by “savers” who “keep” rather than “spend” their deposit account balances. So debtors “can’t” earn back the money, and debtors can’t repay their bank loans: because the people who earned and now have all the deposit account money are “saving it”.The commercial bank balance sheet money supply system “can’t work”. Which is why it doesn’t work. It collapses, and has to be bailed out.About 3–5% of the economy’s total spendable, investible and earnable, savable money supply exists in the form of government-printed banknotes and government-minted coins. 95–97% of all “money” is commercial bank-created credit/debt, not government-issued “money”.Almost all of the cash part of the economy’s money supply exists in peoples wallets and in businesses’ cash drawers and safes. This money is continuously spent-earned in the producer-consumer economy’s buy-sell, spend-earn stream.Cash money in banks is not part of “the economy’s” money supply. Cash in a bank’s vault, cash drawers and ATMs (along with the bank’s reserve account balance in its central bank reserve account) is the bank’s money assets: the bank’s “liquidity”.About 20% of the total deposit account money supply exists in people’s and businesses’ commercial bank checking accounts. This is also money that is continously spent-earned in the producer-consumer economy’s buy-sell, spend-earn stream.So about 23–25% of the total money supply is being “spent-earned”, so debtors could theoretically earn all that money, and use it to paydown their bank loans. Banks’ expanded balance sheets would be “reduced” by about 20%: the deposit account money and loan account debt cancel each other out — are “extinguished” — when debtors repay their bank loans. Banks’ deposit liabilities and earning assets are reduced by bank loan repayments.But the producer-consumer economy would have no “money” to conduct its buy-sell, spend-earn, payer-payee transactions. The only money left would be household and corporate “savings”. If savers spent down their savings, then the producer-consumer economy could go to work again, to pay-earn the newly re-circulated savings.DEposit account balances comprise almost all money. You spend deposit account money by debit card, online banking, check, wire transfer, etc. And you earn deposit account money by check or direct deposit into your commercial bank deposit account.{Savers have collectively transferred about 17% of the deposit account money supply out of their commercial bank accounts, into their brokerage accounts in the savings-funded capital markets financial system where the savings become “capital” and savers become capitalist “investors” who buy bonds and stocks to earn the interest and dividend payments. This is the “money markets” money supply, which is spent buying investment assets. It is not spent in the producer-consumer economy, buying stuff that people and businesses work at producing “for sale”.}The central bank and the commercial banks operate the account money “payments system”. When you pay a bill by online banking, you authorize your bank to debit your deposit account balance; and you authorize the payee’s bank to credit the payee’s deposit account balance, in the amount of your payment. Nothing “moves”. Your spendable deposit account balance is reduced by the debit, and the payee’s spendable deposit account balance is increased by the credit. The whole process is accomplished by typing debits and credits into customers’ deposit accounts. Look at your bank statement, and you will see the debits column (your money-spending) and credits column (your money-receiving); and you deposit account “balance” at the bottom of the page. Your balance is your personal deposit account “money supply”.When deposits are paid from a customer of one bank to a customer of a different bank, an equal amount of reserves is paid from the payer bank’s reserve account into the payee bank’s reserve account. The central bank debits payer banks’ accounts and credits payee banks’ accounts. Many back and forth payments cancel each other out, so reserve account payments are lagged and aggregated, rather than done at the same time as deposit account payments.If your deposit account has an insufficient balance to debit, your attempt at payment out of your deposit account fails to “clear”. The payee is not paid. If your bank’s reserve account has an insufficient balance to debit (and if your bank can’t borrow excess reserves from other banks in the overnight market, or from the central bank’s lending facilities), then the bank-to-bank reserve payment fails to “settle”. In both cases, the payment is not made. Your deposit account balance no longer “works” as spendable “money”.“Illiquid” banks have no “base money” (reserves) in their central bank reserve account, to settle their customers’ deposit account payments. In 2008, due to massive mortgage loan defaults, and commercial banks’ derivative counterparty exposure (in the post Glass-Steagall deregulated banking environment): US and European banks suffered systemic liquidity failure.Banks’ earning assets — the defaulting mortgage loans — were not “earning”. They were delinquent, non-performing, defaulting, already defaulted. The millions of recently unemployed debtors had no money (income or savings) to pay their debts, so the banks couldn’t collect the credits they were “owed”. Banks found themselves holding literally 10s of trillions of uncollectable balance sheet assets.But the payees — real estate sellers who earned and now owned all the new deposit account money banks had created as “mortgage loans”, and debtors had borrowed and spent buying price-inflated real estate — still had all of their deposit account balances, which are their banks’ balance sheet deposit liabilities, payable with their bank’s “liquidity” (vault cash and reserve account balances).The banks needed liquidity. They couldn’t borrow it from other banks who still had sufficient liquidity, because nobody trusted each other’s solvency. Who will buy your portfolio of defaulting earning assets, and pay you enough base money to resolve your illiquidty?Central banks will. Just as commercial banks create deposits to purchase debt-assets; so central banks create reserves to purchase debt-assets. Central banks bought trillions of Treasury debt (bonds) and mortgage-backed securities (MBS) from the banks, and paid with newly created credits to the commercial banks’ reserve account balances. Central banks reliquified the commercial banking system. But restoring liquidity does not address the underlying insolvency problem.If a bank makes a $500,000 mortgage loan, based on an assessed real estate value of $550,000, the bank has $550,000 of “collateral assets” to back the new $500,000 debt-asset it purchased, and the new $500,000 deposit liability it created to pay for its asset purchase. If the debtor fails to repay the money (defaults), the bank can foreclose on the house and sell it, to get the money to writedown its balance sheet. But if bubble real estate prices have crashed and the sellable price of the collateral asset is now only $200,000, the bank has lost $300,000 and has to pay out of its loan loss reserves, then out of its capital reserves. Banks rapidly ran out of “their own money” (capital), and couldn’t cover all their bad loans.Mortgaged real estate lost 10s of trillions of ‘value’ (realistic sellable price) after the 2000s mortgage-inflated real estate price bubble burst. Millions of mortgage-debtors defaulted, and the “collectable” asset side of bank balance sheets collapsed by 10s of trillions. But the “payable” deposit liability side has not collapsed. Banks still “owe” their liquidty to their deposit account customers, who are holding 10s of trillions of deposit account balances.The banks owe trillions more payable deposit liabilities, than they have collectable earning assets. The banks are still trillions below $0 “insolvent”.To resolve 1930s banking system insolvency, 1000s of insolvent banks were taken into receivership. Their assets were sold, and the bankruptcy auction proceeds were paid out to the banks’ creditors. Deposit account customers are a bank’s largest class of “unsecured” creditors. Unsecured means you get paid “last” from the bankruptcy auctions, if there is any money left to pay you at all, after “senior” creditors get paid. Which there won’t be, because a 2000s law made derivatives counterparties “supersenior” creditors to commercial banks. And the banks owe far more trillions of derivative liabilities than they have sellable assets.In the 1930s, depositors’ account balances in bankrupt banks were simply written off, as the unpayable money liabilities of bankrupt banks. Depositors were dismayed to discover that their “money in the bank” is not actually “money”. It is the depositor’s money asset that is owed as the bank’s money liability. Banks couldn’t pay their money liabilities, so depositors lost all their “money in the bank”.But this time is different.Instead of letting insolvent banks fail, regulators will bail-in your deposit account balance, to reduce your bank’s unpayable deposit liabilities, and increase your bank’s paid-in capital. Banks will issue millions of new ownership shares, and regulators will use your deposit account balance to purchase those shares on your behalf. The bank gets your money as its capital; and you get shares in your (deeply insolvent) bank.Instead of “having money in the bank”, you will “own shares in the bank”. The bank’s money-debt to you (deposit liability) will be reduced when regulators pay (some or most of) your deposit account money to the bank to buy its new equity shares for you.This is the greatest risk still facing the world: systemic insolvency of the commercial banking system that creates virtually all of the world’s money supply as loans of bank credit, all of which is owed back to banks as debtors’ loan repayment debts and bond debts. When debtors can’t pay their creditor-banks, debtor-banks can’t pay their creditor-depositors. Game over, for the commercial bank balance sheet money supply system.Government-issued debt-free fiat money could solve the problem, but that’s heresy against the conventional (false) wisdom; and a direct threat to the bankers’ monopoly control of the global money-issuing system.