Troubleshoot Payroll Error PS038 in QuickBooks Desktop

PS038 is a payroll error that occurs while you’re updating QuickBooks Payroll tax tables, attempting to file Payroll forms, or when the paychecks are withheld as Online to send. Damaged QuickBooks data files, inactive payroll subscriptions, incorrect security or firewall settings, inaccurate  PSID or EIN, outdated QuickBooks version, incorrect employee details, or corrupted QuickBooks installation are the causes of error PS038 QuickBooks.

In this article, users will gain an in-depth understanding of QuickBooks error PS038, its causes, and steps to resolve, guidelines to avoid facing the error, and answers to the frequently asked questions on this topic. Before you start fixing QuickBooks Payroll error PS038, create a backup of the company data file.

You may witness PS038 error messages on your window like:

How to Troubleshoot the QuickBooks Error PS038

Detailed instructions for resolving the QuickBooks error 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, on 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
• 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 errors. 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.

Record the amount that appears about 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 us 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.

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. A backup must 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 in 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.

Read more: Update State Unemployment Insurance Rate in QuickBooks Desktop

How to Prevent QuickBooks Payroll Error PS038 from Occurring in the Future?

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.

1. 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.
2. 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.
   • Make sure that the versions of your tax tables and QuickBooks application are updated regularly. Additionally, we advise you to install the most recent Windows update.
3. 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.
4. 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.

What are the Reasons that Trigger the QuickBooks Payroll Update Error Code PS038?

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

• Damaged QuickBooks Data File
  • The most common cause is faulty or destroyed payroll data in your QB company file.
• Payroll Subscription is inactive
  • You may know already that to process payroll in QuickBooks Desktop, it is compulsory to have a current payroll subscription. This 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.
• Old QuickBooks Desktop version
  • Payroll issues 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. Hence, confirm that the employee data you submitted to QB payroll is accurate.
• Corrupted QuickBooks Installation
  • Corrupted QuickBooks installation files or an incorrect or incomplete QuickBooks installation could be the source of the PS038 problem.

Final Words

QuickBooks PS038 is a payroll issue that disrupts payroll updates and paycheck processing, often caused by outdated software, internet issues, or incorrect employee data. To resolve QuickBooks error PS038, you are required to check for any stuck paychecks, update QuickBooks and payroll tax tables, and verify employee and subscription details. Similarly, updating QuickBooks and Windows, regularly verifying and rebuilding your company file, and closing the program properly all contribute to a smoother payroll experience. By following these practices, you can minimize issues in payroll and maintain an efficient QuickBooks system. 

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:

Frequently Asked Questions