Powerful Methods to Overcome QuickBooks Payroll Error PS036

Last Updated on July 7, 2025

QuickBooks Payroll helps manage employee payroll for many businesses, easing their accounting tasks. It offers various features and services to users so that they can calculate employee earnings, deduct payroll taxes, disburse salaries, and maintain accurate financial records. New updates for QB Payroll are important because they contain the latest tax rates, calculations, and more features. 

However, while users download and install the QB payroll updates, they often run into errors and issues that delay this process. The QuickBooks Payroll error PS036 is a common error that hinders the payroll update installation. It is a part of the PSXXX error code series, which usually appears during the QB payroll update.

The PS036 error in QuickBooks Payroll may hinder your accounting tasks. If you want a quick resolution and guidance to fix it, then connect with an Accounting Helpline’s expert at 1.855.738.2784 today.

All There is to Learn About QuickBooks Payroll Error PS036

The QuickBooks Payroll error PS036 is shown when users attempt to download and install a new payroll update. This usually happens when the QB Desktop application fails to verify your payroll subscription, even though it may be valid. The payroll error PS036 can also occur if you use multiple active subscriptions on your application rather than just one.

This issue hinders the payroll update and delays numerous accounting tasks, which can be frustrating for users. Let’s delve into what the key factors are leading to this problem to understand what may have caused the payroll PS036 error in QuickBooks Desktop.

The warning message for QuickBooks Payroll error PS036 usually says:

“[Error PS036]. QuickBooks has encountered a problem and needs to close. We are sorry for the inconvenience.”

Or

“QuickBooks Error PS036: Payroll Update Failed.”

Or

“Error code PS036 can’t verify your payroll subscription and can’t help you to get the new update.”

Reasons Behind the QuickBooks Error Code PS036

The following reasons are some of the key factors that cause the PS036 error in QB Desktop, which prevents the payroll updates from being successful.

1. An inactive or expired QuickBooks Payroll subscription.
2. More than one active payroll agreement, along with an inactive Direct Deposit agreement.
3. Damaged or corrupt paysub.ini file.
4. Outdated QuickBooks Desktop application.
5. You may have an incorrect Service Key.
6. The company file has an incorrect Employer Identification Number (EIN).
7. Incorrect PSID in the company file.
8. QuickBooks Desktop may not support your version of Windows.
9. Invalid number or EIN status of payroll subscription in the QuickBooks Desktop Service Keys.
10. Damaged company file or data.

These are the prime causes that may have caused the QuickBooks payroll error PS036. Now, let’s take a look at some working solutions that can resolve this issue on QB Desktop.

Note: If you use Direct Deposit for your QuickBooks Payroll, then do not follow any of the given solutions for QuickBooks Payroll error PS036, and contact us.

Proven Methods to Resolve the QuickBooks Payroll Error PS036

These are some working solutions that you can follow to troubleshoot the QuickBooks error code PS036 as well as prevent it from occurring. Only proceed with these methods if you don’t have a Direct Deposit active or in process for your company file.

Solution 1: Validate Your Payroll Subscription

Follow the steps provided below to verify and validate that you have an active payroll subscription:

1. Expand the Employees menu and select My Payroll Service.
   
2. Then choose Account / Billing Information.
3. Now log in with your Intuit Account.
4. Verify the ‘Active’ status of the payroll service.

After this, close this window and reopen QuickBooks to refresh all data. If you still face the QuickBooks error code PS036, then move on to the method below for updating the QB Desktop application.

Solution 2: Update the QuickBooks Desktop

An outdated version of QBDT can often lead to numerous errors and problems. The QuickBooks PS036 error can also be a part of that, so let’s update the software to the latest release.

1. Navigate to the Downloads & Updates section on Intuit’s website.
2. Locate the Product menu and select QuickBooks Product in the dropdown.
3. Now select your QuickBooks version to download and its Version year in the dropdown.
4. Hit Get the latest updates, then click on Save/Save File.
5. Once downloaded, open the update file and install it.
6. Finally, restart your computer to load the updates.

You will also need to update the payroll tax table after you update QuickBooks Desktop to the latest version. You can follow the process below and prevent QB error PS036.

Solution 3: Update the QuickBooks Payroll Tax Table

It is necessary to update the tax table in order to refresh your payroll settings. This process may resolve the PS036 error in QuickBooks Desktop and allow you to update payroll normally.

1. Expand the Employees menu on the QuickBooks homepage.
2. Locate and select Get Payroll Updates.
   
3. Tick-mark the Download Entire Update checkbox
4. Then hit Update.
5. Once downloaded, you will get notified when payroll tax form updates are installed or a new QuickBooks Payroll tax table update is installed.
   
6. Click OK and run a payroll update to refresh your payroll settings.

If the QuickBooks PS036 error persists even after the payroll tax table is updated and the account status is active, then there may be a damaged paystub.ini file causing it. Proceed to the following method to delete it, so that the application can validate the QB Payroll subscription.

Solution 4: Delete the Damaged Paystub.ini File

A damaged paystub.ini file can sometimes cause a QuickBooks payroll error PS036. It interferes with the QB application, causing it to fail to recognize the validity of an active subscription. Learn how to delete the damaged paystub.ini file to resolve it:

1. Open QuickBooks and locate the Help menu. 
2. Choose the Update QuickBooks Desktop option.
   
3. Open the Options section and enter the Download Location.
4. Enter ‘Paystub’ in the search bar and hit Save
5. Delete the shown file.

After this process, you will have to verify your payroll service key for fixing QuickBooks Payroll error PS036. To do so, you can take these steps:

1. Launch QuickBooks Desktop.
2. Click on Ctrl + K to open the service key.
3. Copy the service key details.
4. Delete and re-enter the service key details.
5. Once done, hit Next, followed by Finish.

You may need to run a tax table update to refresh your QB payroll settings through the steps laid out in Solution 3. If your system still shows the QuickBooks PS036 error, then try to run the Quick Fix My Program through the next process.

Solution 5: Run Quick Fix My Program

Follow the process below to use the Quick Fix my Program in order to address the QuickBooks error code PS036.

1. Firstly, download QuickBooks Tool Hub on your system.
2. Open the QB Tool Hub homepage.
3. Locate the Program Problems section on the left panel.
   
4. Click on Quick Fix My Program under 1).
5. Lastly, log in to your company file in QB Desktop.

This will help you fix the PS036 error in QB Desktop. If you still encounter this issue, disable the UAC settings using the next solution.

Solution 6: Disable UAC Settings

Your User Account Control (UAC) settings can often lead to various issues, as well as the QuickBooks Payroll error PS036. Follow this process to disable UAC settings for QBDT on your system.

1. Search and open the Control Panel through the taskbar.
   
2. Choose the System and Security.
3. Look for Security and Maintenance.
   
4. Click Change User Account Control settings.
5. Enter the administrator password and hit Yes.
6. Now, let the program make changes on your computer.
7. Move the slider to the bottom and select Never Notify.
8. Click on OK.

Do remember to enable UAC settings later because it is a crucial security feature for Microsoft Windows. Now, confirm whether the error is gone or still occurring. You can resolve the QB payroll error PS036 by following the method below to add an exception for QuickBooks Desktop in Windows Firewall.

Solution 7. Create a Firewall Exception for QuickBooks

Windows Firewall software often restricts or blocks internet access for some applications, including the QB Desktop, which leads to errors like QuickBooks Payroll error PS036. To ensure that Windows Firewall does not block internet access, you will have to exclude QuickBooks from the Firewall port through this detailed guide.

Once done, check whether the QuickBooks PS036 error has been resolved. If it persists, then the following method will help resolve it by a clean installation of QB Desktop.

Solution 8: Clean Install QuickBooks Desktop

QuickBooks error code PS036 might arise in your application due to incomplete or improper installation or damaged installation files. To resolve this issue, use the QuickBooks clean install tool, as outlined in this guide, to perform a complete installation of the application without losing or impacting your company file and data.

Alternatively, you can proceed with the following method to run the QuickBooks File Doctor tool and repair a damaged or corrupted file, thereby fixing the QB error PS036.

Solution 9: Run the QuickBooks File Doctor Tool

A damaged or corrupted company file can cause QuickBooks Payroll error PS036. To resolve this issue, you can use the QuickBooks File Doctor tool to repair damaged company data. Follow this process outlined below:

1. Launch the QuickBooks Tool Hub and open the Company File Issues section.
2. Locate the Run QB File Doctor Tool option.
   
3. Provide your Admin account credentials.
4. Hit Next, and the QuickBooks Files Doctor will fix any damage to the files.

If your QuickBooks File Doctor is not working, follow this guide to troubleshoot it. Once you complete this process, verify whether the QB error code PS036 has been resolved. 

However, if the error persists, then you can rectify the incorrect Service Key.

Solution 10: Rectify Incorrect Service Key

The PS036 error in QuickBooks Desktop can be caused by registering for payroll using an incorrect service key. To correct it, follow the following method.

1. Get your service key through the Service Key Retrieval Tool or email.
2. Head to QuickBooks Desktop.
3. Locate and open the Employees menu.
4. Move the cursor to My Payroll Service.
5. Select Manage Service Key from the expanded panel.
6. Hit Remove to delete the incorrect service key.
7. Select ‘Add‘ and enter the correct service key.
8. You will get a Payroll Update Notification.
9. Select Next and then OK.
10. Check the ‘Active’ service status and hit OK.

Once you input the correct service key, the payroll update should work smoothly without the QuickBooks error code PS036 occurring. If it does happen, then correct the Employer Identification Number (EIN) in the company file through the method below.

Solution 11: Update Employer Identification Number (EIN)

If your company file contains an incorrect Employer Identification Number (EIN), then it can lead to the QuickBooks PS036 error while updating payroll. To correct it, follow these steps:

1. Head to the QuickBooks application and select the Company menu.
2. Open My Company and locate the Company Information section.
3. Click on the Edit icon in the top right corner to edit the information.
4. Enter the new EIN under the Federal Employer Identification Number field.
5. Now press OK to save.

Once you update the correct Employer Identification Number (EIN) in the company file, the QuickBooks payroll error PS036 should resolve. Now, you should be able to update QB payroll normally. If you can’t, then delete the entitlement client files on your system through the next solution.

Solution 12: Delete Entitlement Client Files

Accumulated Intuit entitlement client data on your system might cause interference with the QuickBooks Payroll update and lead to QB error PS036:

1. Open the Run tab by pressing the Windows key + R.
   
2. Enter C:\ProgramDate\Intuit\EntitlementClient\V8 or V6
3. Locate the EntitlementDataStore.ecml file.
4. Open its menu and choose Delete.
5. Tap Yes to confirm and finish.
6. Launch QuickBooks and follow the registration instructions.

Once you register on QB Desktop, try to update the payroll, and the QuickBooks Payroll error PS036 should not show up now. If this is not the case, then verify and rebuild your data file using the following method to resolve the issue.

Solution 13: Verify and Rebuild the Data File

Your data file may be damaged, which can lead to the QuickBooks error code PS036. To resolve this issue, verify and rebuild the data file using the following method.

Verify the Company File:

Follow these steps on QuickBooks Desktop to verify your data file:

1. Select the Files menu.
2. Choose the Utilities option.
3. Hit Verify Data.

Rebuild the Company File:

With the below steps, you can rebuild your data file in QB Desktop:

1. Click on the Files menu.
2. Choose the Utilities option.
3. Click on Rebuild Data.

After this process, the QB payroll error PS036 should be resolved. If your QuickBooks Rebuilding Data File gets stuck, then follow this comprehensive guide to troubleshoot it.

Quickview Table for QuickBooks Payroll Error PS036 During Payroll Update

Tabulated below is a summary of the blog that provides a concise overview of the QuickBooks payroll error PS036 that occurs during update:

Bringing It All Together

QuickBooks Payroll error PS036 occurs when users attempt to update payroll and delay their accounting tasks. There are several reasons why this may occur, including an expired QB Payroll subscription, an outdated application, an incorrect service key, an incorrect Employer Identification Number (EIN), or a damaged company file. Resolutions to troubleshoot the QuickBooks payroll error PS036 are provided for various circumstances so that you can follow them easily. Are you still experiencing a technical issue while attempting to resolve the PS036 error in QB Desktop? Accounting Helpline’s experts are ready to assist you. Dial 1.855.738.2784 and speak with us to get back on track for updating payroll.

Frequently Asked Questions (FAQs)

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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.