Online Payroll IIF File Bug?

Thanks for sharing the details of your concern, @Anonymous.

When importing transactions, we need to ensure that the format is accurate. You can review the iif file created and ensure that the mapping is correct like the headers of the General Journal entry to avoid any errors during import.

You may check out this article to learn more about the correct headers to be used in each transaction: IIF Overview: import kit, sample files, and headers. 

However, if the mapping is correct, I'd recommend contacting our Customer Care support. They can conduct further investigation of what's causing this behavior and help you fix it.

I'm adding the steps below on how you can reach them:

1. Click Help, then choose QuickBooks Help.
2. Click on the Contact us link at the bottom.
3. Enter a brief description of your issue and click Continue.
4. Choose Start messaging to connect with an expert.

I'm adding these articles to learn more about IIF import and maximum numbers you can make in QuickBooks:

• Improved IIF Import in QuickBooks 2019 and later
• Maximum number of list entries (list limits and custom fields).
• Use journal entries to adjust your client’s books

Please let me know if you have other concerns. I'm just around to help. Take care always.

Importing payments to employees or to Intuit for the overall payroll should work when the type is a Check, as long as the Account used on the TRNS row is a bank account. 

I would think that this is the model for the import, since any payments to Intuit or to individual employees will come from your bank account.

If the TRNS account is not a Bank type account on your chart of accounts, then that's the issue.

What do you mean when you write "the TRNSTYPE for "Direct Deposit Payable" is CHECK in the iif file"?

Very similar/same problem here with IIF exporting from intuit online payroll into QB desktop pro post online payroll conversion to Intuit's new system.  Old intuit system worked fine for last 7+ years.  IIF's starting with 12/31/2020 (we run payroll monthly) have been broken, and just confirmed same issue with exporting payroll for 1/29/21 payroll.  We are left to manually edit .IIF files to get things to import correctly.

I am having the same issue. iif errors on all direct deposit transactions:  "[ERROR] The record at (or starting at) this line could not be imported. There is an invalid reference to QuickBooks Account "Direct Deposit Payable" in the Check. QuickBooks error message: The account for this transaction must be of type Bank. [3140] ."  I am disappointed, we were forced to use this new untested product. I talked with customer service about the issue and after an hour of trying to fix it I was told "It is a known issue the developers are working on." Judging from this post it has been a known issue for a while that has not been fixed.. This is one of two bugs that I was told "It is a known issue the developers are working on"..(the other is editing a payroll check). Payroll used to take 15 minutes now all these work arounds make it take like 2 hours!?

Intuit, if you just take out the "Direct Deposit  Payable" lines and have the check go straight to the bank account like the old system did it will solve this problem.  The "Direct Deposit Payable" entry is redundant, it just "tries to" credit and debit the account anyway.