Payroll Account Guarantee Act of 2023

The Payroll Account Guarantee Act of 2023 would require federal insurance to cover the full balance of noninterest-bearing transaction accounts (such as payroll accounts) at banks and credit unions with less than $225 billion in assets. These accounts are defined as those without interest, allowing easy payments via checks, apps, or electronic transfers without advance withdrawal notice. The insurance would cover the entire account balance, separate from the standard $250,000 deposit insurance limit for other accounts. This means depositors at qualifying institutions could protect their full payroll or business payment balances, even if exceeding $250,000.