How To Fix QuickBooks Error PS038? Easiest Method

Last Updated on March 11, 2025

QuickBooks error PS038 can scare a user trying to run their payroll operations or send paychecks online. Running payroll requires the most recent updates of payroll tax tables installed in QuickBooks Desktop. While doing so, you might get an error message that reads, “You’ve retrieved the latest payroll update and validated your Payroll subscription. We strongly recommend that you go online again before mm/dd/yyyy. [PS038]”. It is a common error that several users face while updating or processing paychecks in QuickBooks.

Error code PS038 was a bug in the QuickBooks application that was fixed with the launch of QuickBooks 2018. Still, recently, several users have reported getting the same error, and it indicates that PS038 has made a comeback in the QuickBooks application. With this article, we will analyze the reasons for the occurrence of QuickBooks payroll update error PS038 and quick solutions that can be implemented to resolve it.

Has QuickBooks error PS038 made it challenging for you to run payroll quickly and efficiently? Don’t worry. Dial 1.855.738.2784 to contact our Accounting Helpline team of certified experts and get professional assistance. Our team will help you get out of this chaos instantly without affecting your operations and data.

What is QuickBooks Payroll Update Error PS038?

QuickBooks payroll error PS038 appears when a user tries to send paychecks online, and the paychecks are stuck as “Online to send.” Payroll cannot be processed if there are paychecks stuck in the system, and thus, resolving the error becomes the need of the hour.

The QuickBooks error PS038 message reads, “You’ve retrieved the latest payroll update and validated your Payroll subscription. We strongly recommend that you go online again before mm/dd/yyyy. [PS038].” Due to this error, users find it troubling to run payroll, download tax tables, and process paychecks smoothly and efficiently.

To begin troubleshooting, users must first learn the reasons behind this error. Then, they can begin troubleshooting after backing up the QuickBooks data to safeguard it against damage and corruption.

Why Do Users Get QuickBooks Payroll Error PS038?

You can analyze and detect the following grounds for QuickBooks error PS038 on your system:

1. Malware or viruses can cause significant damage, including payroll error PS038.
2. Using an outdated QuickBooks application can trigger the PS038 error.
3. Corrupted company files can bring forth QuickBooks payroll error PS038.
4. If your internet connection is poor, you’ll face the error PS038 QuickBooks.
5. Windows Firewall may protect your system from QuickBooks, which, in turn, restricts the application from functioning correctly.
6. If you haven’t updated QuickBooks payroll and downloaded the latest tax tables, you may see the PS038 QuickBooks error.
7. If you’ve validated the payroll subscription after restoring the current QuickBooks payroll update, you can see QB error PS038.
8. QB error PS038 may arise due to stuck paychecks.
9. Third-party programs and antivirus applications may lead to errors by restricting and interfering with QB’s operations.
10. Entering incorrect billing details or credit card information can lead to this issue.
11. In extreme cases, the QuickBooks installation may have gone corrupt or damaged.
12. Sometimes, when you’ve already installed the payroll update and keep trying to do it again, you may get this error.
13. You may face this error because your payroll data is corrupt or damaged.
14. The user trying to access the payroll update may not have sufficient privileges.
15. Windows Registry Issues may be preventing QuickBooks from running correctly.
16. Inaccurate date and time settings might be causing stuck paychecks on QuickBooks desktop.
17. Your system may have closed abruptly due to a power cut or related reasons, causing trouble getting updates.
18. If your system’s hard drives are corrupted, damaged, or carry insufficient space, you’ll face QuickBooks error PS038.
19. Corrupt Network Data (.ND) or Transaction Log (.TLG) issues may lead to QB error PS038.

How to Resolve QuickBooks Error PS038?

If the reasons for the presence of the PS038 error in QuickBooks Desktop are clear, let’s move forward with effective solutions to rectify the issue. However, before doing so, consider the following crucial points:

Important:

1. Make sure to back up your company file and payroll data before troubleshooting the QuickBooks error PS038.
2. Your QuickBooks Desktop application must have the latest updates of the payroll tax table installed.
3. You should not attempt to use the Rebuild Data tool more than two times.
4. Check if you’re using QB in single or multi-user mode.
5. Further, if you aren’t tech-savvy, you can consult QB technicians to assist you in the situation.

Now, let’s jump into resolving the QuickBooks error PS038:

Steps to Rectify QuickBooks PS038 Update Error

If PS038 in QuickBooks Desktop can be fixed by following various troubleshooting steps, as explained in this article, follow the steps in the sequence provided for a quick solution.

Solution 1: Update Your QuickBooks Application

You must ensure that the QuickBooks version you use is the latest and up-to-date to resolve payroll error PS038. The steps involved in updating QuickBooks include:

1. First of all, launch the QB application and navigate to the Help menu.
2. Here, choose the Update QuickBooks Desktop button and hit Update Now at the top-right corner.
3. Select Get Updates, and after the download of the update finishes, close and reopen your application to verify the QuickBooks error PS038.

Solution 2: After Updating QuickBooks, Try Sending Payroll

Attempt to send payroll and see if you can do it PS038 in QuickBooks desktop error-free:

1. Click My Payroll Services under the Employees tab and then click Send Usage Data.
2. If you can send data successfully, then update the payroll again.
3. If you are still getting the same error message, follow the steps given below or contact the Accounting Helpline Payroll Helpline Number USA at 1.855.738.2784.

Solution 3: Check and Find the Paycheck Stuck as “Online to Send.”

Locate and rectify the paychecks stuck in processing due to QuickBooks payroll update error ps038:

1. Under the Edit tab, select Find and choose the Advanced.
2. Under the Choose Filter tab, look for the Filter list and select Detail Level.
3. Select Summary Only.
4. Under the Choose Filter tab, look for the Filter list and select Online Status.
5. From the drop-down list on the right-hand side, select Online to send.
6. Click the Find button to check all the unsent paychecks and PS038 error payroll.

Solution 4: Run Verify and Rebuild Data Tool

The verification and rebuilding of data utilities aim to resolve problems with the company file. Use these in-built tools from the File menu and rectify the QuickBooks error PS038:

1. Make sure to take a backup before running the Rebuild Data tool.
2. Click the Rebuild Now button, as shown in the screenshot.
3. After the rebuild process is completed, you can see the status of stuck paychecks.
4. If rebuilding cannot fix all the stuck paychecks, you can’t update Payroll due to PS038 QuickBooks Desktop.

Solution 5: Verify the Information on Paychecks Stuck in QuickBooks

Check the details given on paychecks stuck in QB when you get QuickBooks error code ps038:

1. Follow the steps from the “Check and Find Paycheck Stuck as Online to Send” section to get the list of all the paychecks that are stuck in QuickBooks.
2. Now open the first paycheck from the list and click the Paycheck Detail option.
3. Once you get the Review Paycheck window, go to the Earnings tab.
4. Now, look for the last item on the list and add it as a new item again.
5. This will prompt QuickBooks to display a Net Pay Locked window where you need to click No to close it.
6. You will need to choose the Rate Field for the item you have just added in the fourth step.
7. Make sure there are no changes in the Net Pay and taxes, and click OK.
8. Click Yes if the Past Transactions message pops up.
9. Hit the Save & Close option and click Yes when the Recording Transactions message appears.
10. Re-open the paycheck and click the Paycheck Details button.
11. Delete the item that was added in the fourth step.
12. Once again, make sure there are no changes in the taxes and Net Pay and click OK.
13. Finally, click Save & Close to save the changes.
14. Follow the same instructions for each paycheck and check if the error is now resolved.

Solution 6: Use Payroll Data and Company File Backup

Difficulties in accessing payroll data or company files may arise due to QuickBooks error PS038. In such cases, using backup may help run QuickBooks smoothly:

1. Head to the File tab in QB’s main menu.
2. Click Backup Company, followed by the Local Backup option.
3. Navigate to Local Backup when the Create Backup page emerges on the screen.
4. Opt for the Options section, then view the Backup Options window.
5. Tap Browse to save this file in this step.
6. Hit OK to validate the file and save it in your chosen location.
7. Ensure to select a local drive to save your backup.
8. Check if the QB error PS038 remains.

Solution 7: Run QuickBooks as an Administrator

You need to run QuickBooks with sufficient privileges to install QuickBooks payroll updates in your system. If you don’t know how to perform this solution, here are the steps:

1. Locate the QuickBooks icon on your desktop or programs.
2. Right-tap the icon and select the Run as Administrator option.
3. Start using QuickBooks without errors and run payroll.

Carefully follow each step mentioned in the article to rectify QuickBooks error PS038, or you can contact us directly for help by dialing our Accounting Helpline Payroll Number: 1.855.738.2784.

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Edward Martin

Edward Martin is a Technical Content Writer for our leading Accounting firm. He has over 10 years of experience in QuickBooks and Xero. He has also worked with Sage, FreshBooks, and many other software platforms. Edward’s passion for clarity, accuracy, and innovation is evident in his writing. He is well versed in how to simplify complex technical concepts and turn them into easy-to-understand content for our readers.