QuickBooks is a powerful accounting software used by small to medium-sized businesses for managing finances, payroll, and taxes. However, like any software, it is not immune to errors. One of the most common payroll-related errors that users encounter is QuickBooks Error PS038. This issue typically arises while attempting to run payroll updates or sending paychecks. If you're facing this problem, don’t worry—this guide will explain what causes the error and provide five tried-and-tested methods to resolve it.
What is QuickBooks Error PS038?
QuickBooks Error PS038 usually occurs when users try to update their payroll but receive a message that reads:
“You’ve retrieved the latest payroll update and validated your Payroll subscription. We strongly recommend that you go online again before [date] to get the latest payroll update.”
However, QuickBooks still throws the PS038 error. This typically means that there is one or more paychecks stuck as "Online to Send" in your system, preventing further payroll updates.
Causes of QuickBooks Error PS038
Understanding the root cause of PS038 helps in choosing the right troubleshooting method. Common reasons include:
- Stuck paychecks in the system marked as “Online to send.”
- Corrupted company file data related to payroll items.
- Outdated version of QuickBooks Desktop.
- Internet connectivity issues during payroll update.
- Incorrect payroll service subscription status.
How to Identify Stuck Paychecks
Before diving into the fixes, follow these steps to identify if you have stuck paychecks:
- Open QuickBooks and go to the Edit menu > Find.
- Click the Advanced tab.
- Choose Transaction Type = Paychecks.
- Click Find.
- Look for paychecks with a status of “Online to send.”
If you find such paychecks, you’ve likely confirmed the presence of Error PS038.
[Method 1] – Update QuickBooks Desktop to the Latest Version
Outdated versions of QuickBooks may not communicate properly with Intuit’s servers, leading to errors.
Steps:
- Open QuickBooks Desktop.
- Go to Help > Update QuickBooks Desktop.
- Click on the Update Now tab.
- Check the box for Reset Update, then click Get Updates.
- Once updates are downloaded, restart QuickBooks and install the update.
After updating, try sending payroll data again to check if the issue is resolved.
[Method 2] – Use the Verify and Rebuild Data Utility
This built-in tool helps fix issues with company file integrity, including stuck payroll items.
Step 1: Verify Data
- Go to File > Utilities > Verify Data.
- Wait for QuickBooks to scan the company file.
- If issues are found, proceed to rebuild.
Step 2: Rebuild Data
- Go to File > Utilities > Rebuild Data.
- Follow the prompts and backup your company file if required.
- Allow QuickBooks to rebuild the data and fix errors.
Re-run payroll or update it to see if the error is resolved.
[Method 3] – Send All Pending Paychecks
If any paychecks are stuck as “Online to Send,” sending them manually may resolve the error.
Steps:
- Open Employees > Send Payroll Data.
- Review the list of transactions.
- Click Send All.
- Wait until all paychecks are successfully sent.
Once done, check if QuickBooks still shows Error PS038.
[Method 4] – Create a Backup and Re-enter the Affected Paychecks
In some cases, you may need to delete and re-enter the stuck paychecks to clear the error.
Caution: Before proceeding, create a full company file backup.
- Note down the details of the stuck paychecks.
- Delete the stuck paychecks from the system.
- Recreate the paychecks using the same details.
- Save and send them again through the payroll center.
Verify if QuickBooks Error PS038 persists after this step.
[Method 5] – Contact QuickBooks Payroll Support
If none of the above methods work, it’s best to get help from QuickBooks experts. You might be dealing with:
- Deep corruption in the company file.
- Complex data issues involving payroll services.
- System-level conflicts with QuickBooks.
How to Contact Support:
- In QuickBooks, go to Help > Contact Us.
- Type “Error PS038” in the search box.
- Choose Talk to a human, then select the method (chat or phone) to connect with a support agent.
Tips to Prevent QuickBooks Error PS038 in the Future
- Regularly update QuickBooks and payroll tax tables.
- Always verify and rebuild your data file monthly.
- Avoid abrupt shutdowns during payroll processing.
- Regularly check the status of paychecks in your payroll center.
- Maintain a strong and stable internet connection during payroll tasks.
Final Thoughts
QuickBooks Error PS038 can be frustrating, especially when you’re under time pressure to process payroll. But with the right approach, it’s easily fixable. Start with identifying stuck paychecks and try each of the above methods systematically. If you’re still facing issues, QuickBooks Support is just a call or chat away.
By staying proactive—keeping your software up-to-date and regularly verifying data—you can significantly reduce the chances of encountering this and other payroll-related errors in the future.