QuickBooks Error PS038 - Can't Run or Update Payroll

Do you experience QuickBooks error PS038 whenever you attempt to run the payroll or update a particular tax table? It is quite likely that you may witness error code PS038 while running payroll operations, while the paychecks get held as Online to Send, or even while downloading tax tables.

Payroll errors occur due to the fact that your QuickBooks application may be outdated or there can be certain damage in your company file. In this article, we will talk about the error in detail, the different reasons that trigger the error, and various troubleshooting steps to fix such payroll issues.

Let us begin by understanding what QuickBooks Error PS038 is all about.

What is the QuickBooks Error PS038?

In simple terms, QuickBooks Error PS038 is a type of payroll error that may arise when you attempt to file your payroll forms, or when the paychecks get held as Online to Send, or update the payroll tax tables.

Among the problems you could run into are:

Cannot update tax table
Unable to run payroll tax table

You may witness PS038 error messages on your window like:

“You’ve retrieved the latest payroll update and validated your Payroll subscription. We strongly recommend that you go online again before 02/16/2019. [PS038]”

Payroll operations and payroll update downloads are prohibited by PS038. Because of this, it must be fixed right away or you will be unable to send paychecks.

Now that you have learned what the error is all about, let us learn about the causes of the QuickBooks error code PS038.

What are the reasons that trigger the QuickBooks Payroll Error code PS038?

Let us find out why you may witness payroll error PS038 in QuickBooks Desktop. Here is the list of the reasons:

Damaged QuickBooks Data File
- The most common cause of QuickBooks Error PS038 is faulty or destroyed payroll data in your QB company file. In this article, we’ll look at ways to repair any corruption or damage to the payroll data.
Payroll Subscription is inactive
- You may know already that to process payroll in QuickBooks Desktop, it is compulsory to have a current payroll subscription. The PS038 issue may appear if your payroll subscription has expired or if you haven’t subscribed to QB payroll.
Security or Firewall software
- QuickBooks must establish an internet connection and download the update package from Intuit’s official website in order to download the payroll updates. QuickBooks, however, is unable to receive payroll updates if a firewall configuration or security program, such as an antivirus, prevents it from operating or from accessing the internet.
Wrong EIN or PSID
- If the Employer Identification Number (EIN) or PSID you entered in the company file is incorrect, payroll changes cannot be downloaded and may not process correctly when paychecks are mailed. This explains why you can see QuickBooks error PS038 on your screen.
Old QuickBooks Desktop version
- Payroll issues like error code PS038 may frequently be caused by an out-of-date version of QuickBooks Desktop. On the other hand, QB Desktop updates frequently address small glitches and other problems, including paycheck update problems.
Wrong Employee Details
- The disparities or inaccuracies in the employee data, such as the Social Security Number or the tax withholding information, are another reason why you are seeing the payroll error PS038 on your screen. Hence, confirm that the employee data you submitted to QB payroll is accurate.
A problem with Payroll Updates
- You may be witnessing the error PS038 because of a technical issue or a problem in the procedure for updating the QuickBooks Payroll.
Internet connection problems
- Reliable and fast network access is necessary for QuickBooks to download payroll updates. However, if there is a sluggish or inconsistent internet connection, the payroll updates will stop.
Corrupted QuickBooks Installation
- Corrupted QuickBooks installation files or an incorrect or incomplete QuickBooks installation could be the source of the PS038 problem.

What are the things to do prior to troubleshooting QuickBooks Error PS038?

To guarantee a seamless and successful resolution procedure, there are important actions you should follow before entering into troubleshooting QuickBooks Error PS038. To properly handle the issue, several prior steps are essential:

Update Payroll Tax Tables
- Ensure that the most recent payroll tax tables are installed in your QuickBooks payroll system. This update is essential because it guarantees that the payroll processes and calculations you use are correct and in compliance with the most recent tax regulations.
Work in Single-User mode
- When trying to debug, make sure you are using QuickBooks in Single User Mode. This mode offers a more regulated setting, lowering the possibility of operations clashing that could happen in Multi-User Mode and guaranteeing a more targeted and efficient troubleshooting procedure.
Confirm QuickBooks Version
- Verifying that the version of QuickBooks you’re using is compatible with Intuit is essential. The QuickBooks 2021, 2022, 2023, and 2024 editions are compatible. Selecting the appropriate version guarantees that your program is current and equipped to manage the troubleshooting procedure effectively.
Restrict Rebuild Data Usage
- Rebuild Data should not be called more than once or twice. Overuse of this function may cause issues with your data file and increase the difficulty of the debugging process.

How to fix the QuickBooks Error Code PS038 in QuickBooks Desktop?

Detailed instructions for resolving the QuickBooks problem PS038 are provided in this section. Please follow these instructions exactly for best results.

Solution 1: Take a backup of your company file

Taking a backup of your company file is highly advised before attempting any of the troubleshooting techniques that follow. This guarantees the safety of your valuable company data and allows you to restore a copy when needed.

Open QuickBooks Desktop
Click the File menu and press the option, Switch to Single-user mode
Now press the File menu once more
Move the cursor on the option for Backup Company. Select to Create Local Backup
Now, in the screen you will witness, press on Local Back up and then click Next
You will witness the Local Backup Only option. Click on Browse and select where you wish to save the particular backup of the company file
You may select the number of backups you wish to keep. This step is not compulsory
Now QuickBooks will be required to perform a test to make sure your company file is in the proper shape
Once completed, press on OK
Now press the Save it Now option and then click Next
Enable the QuickBooks to take a backup company file. You are likely to get a confirmation after it is done.

Solution 2: Update QuickBooks to the current list

QuickBooks Desktop updates frequently address small problems that can repair payroll error PS038. To find out how to upgrade QuickBooks Desktop to the most recent version, see this article.

Solution 3: Locate the Stuck Paychecks

Now, we need to classify the stuck Paychecks and note them down.

Press Edit and select Find
Select the Advanced tab at this point
In the Select Filter area, you’ll see the Filter list. From the list of filters, select Detail Level
Select Summary Only now
Go back to the list of filters and select Online Status
To send, tap Online
Click on Find Now. This will deliver the paychecks to Intuit that have not yet been sent.

Record the amount that appears in relation to the Number of matches

Solution 4: Payroll Data Sending

Now that your QuickBooks company file has been updated and a local backup has been made, let’s submit payroll or use data. To do the same, adhere to the instructions below:

Select Employees when QuickBooks Desktop opens.
To send use data, navigate to My Payroll Service and select it.
As an alternative, go to Employees and then select Send Payroll Data if you are unable to access the above-mentioned alternatives.
Press Send All when the Send/Receive Payroll Data window shows up.

When requested, give the payroll service pin.

Run the payroll updates if QuickBooks was able to deliver the payroll data. Proceed to the following step, though, if QuickBooks error PS038 does not go away.

Solution 5: Run the Rebuild and Verify Data Utility

Shut down the Find window and launch QuickBooks Desktop’s verify data tool to recover the stuck paychecks.

Run Verify Data

If the Find window is open, close it
After selecting Window, select Close All
Select File, then press Utilities
Select Verify Data now
You don’t need to run rebuild data if you get the notification, which indicates that QuickBooks found no issues with your data
If you encounter an error message, try searching online for solutions related to that particular problem message or getting in touch with our professionals
There is data degradation in the file if you receive the notice “Your data has lost integrity.” In this scenario, go ahead and reload your data; we’ll talk about it presently

Run the Rebuild Data

If you discover that the company file has damaged data, use the rebuild data application. The steps to do the same are as follows:

Select File, then press Utilities
Select Rebuild Data
Now, before you rebuild your data, QuickBooks will assist you in creating a backup. It is vital that a backup be made. Press the OK button
Select the place where the backup company file will be kept. Make sure you aren’t replacing an existing backup file when you give the file a name
Select Save
You’ll receive an email when the rebuild is finished
Now double-check the data to make sure there are no more damages
Select File, then press Utilities
Select Verify Data now

After that, launch the payroll processes in QuickBooks Desktop again or download the updates. In case all the troubleshooting steps did not resolve the issue, move to solution 6.

Solution 6: Resolving the Stuck Paycheck

Take out the oldest trapped paycheck
Press the button marked Paycheck Detail
The Review Paycheck window will appear. Enter the same earnings items as the last earnings item in the list in the Earnings field. For example, you should add another earnings item to the list called Hourly Rate if Hourly Rate is the last item in the list
Select No when the Net Pay Locked notice appears
Verify that there have been no changes to the tax rates or net pay. Press the OK button
Click Yes if a message about a past transaction appears
Lastly, press the Save & Close button. The paycheck will close as a result
Press the Yes button when the Recording Transaction caution notice appears
Click the Paycheck Detail button after opening the paycheck once more
Take out the duplicate profits item that you recently placed in the earnings section
Verify that there have been no changes to the tax rates or net pay. Press the OK button.

After you have located all the trapped paychecks, follow the previous procedures once more. When finished, send the payroll date by scrolling up to Step 3. Download the payroll update once more after that.

What other errors occur while downloading Payroll updates?

Occasionally, while attempting to download payroll changes, you may encounter the following issues when downloading tax table updates:

PS033	PS101
PS036	PS107

How to prevent PS038 from occurring in the future?

Using the following approaches, you can easily fix QuickBooks problem PS038. However, there are some useful approaches one can use to avoid running into payroll problems later on. Use these best practices to ensure that QuickBooks accounting is completed without any disruptions.

Review your company file sometimes
- Over time, a company file might get damaged and gather data. In order to repair damages before they worsen, it is a good idea to confirm and reconstruct the company file in two or three weeks. Additionally, to guarantee an optimal QuickBooks experience, you can reduce the company file every six months or so when it grows larger.
Keep QuickBooks Desktop, Windows, and Tax Tables updated
- Version upgrades include two important things: software improvements and bug patches, as well as new features and product enhancements. Your QuickBooks experience with payroll and accounting is enhanced overall by doing this. Make sure QuickBooks has automatic updates turned on. Additionally, get the most recent revisions to the payroll tax table every few months.
- You can reduce the likelihood of encountering QB payroll update issues PS038 by making sure that the versions of your tax tables and QuickBooks application are updated on a regular basis. Additionally, we advise you to install the most recent Windows update.
Avoid Data Damage
- Data disks and the programs on them can become corrupted by malicious programs such as viruses and malware. As a result, you should take precautions to keep such risks off your computer.
Make sure QuickBooks is not shut down unexpectedly
- Payroll issues, like PS038 in QuickBooks, might arise from data corruption caused by an abrupt shutdown of the system or QuickBooks. As a result, make sure QuickBooks Desktop is always closed properly.
- Note: The X (Close) button located in the upper right corner of the QuickBooks window should not be clicked in order to close the window directly. Rather, adhere to these procedures for a secure QuickBooks Desktop shutdown:

Step 1: Press the File menu and choose Close Company
Step 2: Now press the File menu once more and press Exit. It will shut the QuickBooks application properly and save you from many errors.

What other payroll problems can be fixed with the above solutions?

Here is a quick overview of some of the issues which users experience concerning the QuickBooks Error PS038:

Several Items Leading to Payroll Error PS038
- As this article has shown, you should check to see whether any paychecks are stuck if you come across a payroll mistake.
- But occasionally, when you learn about the stopped paychecks, you discover that there are a lot of them. Going to each delayed paycheck and individually editing the details is stressful. The problem can be resolved by toggling the stuck paychecks, although this can take some time.
Always need to switch between online paychecks and payroll updates
- The QuickBooks issue PS038 is seen by the user anytime they attempt to edit the tax table. They attempt toggling the stuck paychecks as a workaround, and it does the trick. They must, however, toggle stuck paychecks each time they download an update to the tax table.
- It is obvious that this needs to be corrected permanently because it is too much work. Use the troubleshooting procedures listed above in this guide to fix the PS038 issue from its source.

Final Words

The blog post mentioned above explains how to fix QuickBooks problem PS038. Payroll errors, nevertheless, are frequently difficult to remove. An accounting tech specialist can assist if the payroll problem continues because they are the only ones with the necessary skills and knowledge to resolve QuickBooks problems from the source.

Frequently Asked Questions

Q1: What are the different payroll errors in the PSXXX series?

Ans: The PSXXX series includes the following common payroll errors: PS038, PS036, PS033, PS101, PS107, etc. When you download tax table updates or do payroll activities, PSXXX errors appear. These issues can be caused by a faulty company file, QuickBooks being blocked by a firewall, misconfigured connection settings, etc.

Q2: Is it mandatory to update the QuickBooks Payroll Tax tables?

Ans: It is vital that you update your payroll tax tables on a regular basis. Updating is not necessary if you use QuickBooks Online, as updates are carried out automatically. On the other hand, if you’re using QuickBooks Desktop, you’ll either have to make sure automatic updates are turned on or update manually.

Q3: Is it possible that a stuck paycheck can trigger duplicate entries in QuickBooks Desktop?

Ans: Indeed, repeated entries may result from attempting to re-enter a paycheck that seems to be stuck. In order to prevent making matters worse, it is advisable to identify the original issue first.

Q4: Do I need to check particular settings if paychecks are getting stuck often?

Ans: Incorrect payroll setup settings may be the cause of frequent paycheck problems. This can be avoided by carefully examining the settings and making the required changes.