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Fixation of QuickBooks Error PS038 (Cannot Run Payroll)

Are you unable to download your QuickBooks payroll updates due to recurring showing up of the Error PS038? This might be very annoying, but we offer an apt resolution to fix this Error. This article contains all the information that you need to uproot this technical issue.

The QuickBooks Error Code PS038 occurs when you are attempting to download the payroll updates. This Error may also show when you try to send paychecks through the internet, and the paychecks remain stuck at 'Online to send.'

Fixing this Error becomes indispensable as it could prevent you from processing your paychecks and could also prevent you from downloading your payroll updates. However, there is no need to worry as this article contains the step-by-step procedures for eliminating the QuickBooks payroll error PS038. Keep reading on!


What causes the QuickBooks Desktop Error PS038?

The QuickBooks error code PS038 in QuickBooks may show up due to the following reasons:

  • You may be using an outdated version of QuickBooks software.

  • Online paychecks that get stuck also contribute to the Error.

  • Payroll updates haven't been updated for a very long time.

  • You are attempting to validate the payroll subscription after recovering the current QuickBooks Payroll update error PS038.


Valuable Alternatives to Rectify QuickBooks Error PS038

You can implement the procedures laid down in the following alternatives to rectify the QuickBooks Error PS038.

Alternative 1: Update QuickBooks Desktop

  • Open QuickBooks Desktop

  • Then go to Help > Update QuickBooks Desktop.

  • Then click on Update Now in the top right corner

  • Click Get Updates

  • Once the Update is complete, close and reopens QuickBooks.


Alternative 2: Send Payroll Data

To send the payroll data, perform the steps below:

  • Head to 'Employees.'

  • Select 'My Payroll Service' and then Send Usage Data.



  • If it's sent successfully, try re-launching the payroll update. If the problem persists, please follow the walkthrough provided in the following alternative.

Alternative 3: Verify and Rebuild the Company File

Verify Data

You need to first 'verify' the data as follows:

  • Open QuickBooks Desktop and navigate to 'File'> 'Utilities.'

  • After that, choose 'Verify Data.'


Verify data utility Screenshot
Verify data utility Screenshot

  • To close all open windows, click 'OK.'

  • Click 'OK' if QuickBooks detects no issues with your data.


Rebuild Data

After verifying the data, rebuild the same by conforming to the below-mentioned steps.

  • Select 'File' and then 'Utilities.'

  • Select 'Rebuild Data' from the drop-down menu.

  • To generate a backup, click 'OK' and then Save.

  • When the rebuild is finished, click View Results.

  • If the QuickBooks Error Code PS038 still exists even after rebuilding the data, follow the directions below:

  • Click 'Edit,' and then choose 'Find.'

  • Select the 'Advanced' tab

  • From the filter, select Detail Level and Summary only

  • From the filter, select Online Status and then choose Online to Send from the drop-down menu.

  • Now, go to 'Find' and look for the paychecks.

  • Please enter the information for the paycheck and save it in Excel.

  • Click 'Paycheck Detail.'

  • Open the first paycheck from the list.

  • In the Earning Section of the Review Paycheck, type in the same earning item as the previous earning item.

  • A notice appears that says ‘Net Pay Locked.'

  • Exit the message by selecting 'No.'

  • Make sure that the Tax and Net Pay haven't changed by selecting the Rate field of the new earning item.

  • If the Past Transaction message appears, click 'Yes.'

  • Select Save & Close.

  • Open the paycheck again and select Paycheck Details

  • Delete the earning item that you've recently inserted in the earning section

  • Double-check that the Tax and Net Pay haven't changed and click Save & Close.

  • Do the same with any other paychecks that have the status Online to Send. After that, try again to send the usage data.

  • If the Error still continues to occur, jump to the following method.


Alternative 4: Detect inconsistent paychecks

  • Under the 'Editing' menu, click 'Search' and then 'Advanced.'

  • Go to the 'Select Filter' tab.

  • Select the detail level from the 'filter out list.'

  • To proceed further, select the summary.

  • Then, from the filter list, select online status.

  • To send the data, select the drop-down list to the right and select online.

  • Review the paychecks that have been sent.


We are sure that by following the methods illustrated in this article, you were successful in resolving the Error PS038 in QuickBooks Payroll.

We hope that you are now able to update the payroll software and are also able to send your paychecks without facing any obstruction. Our QuickBooks payroll error support team of professionals is available 24*7 to offer you the utmost support. You can reach out to us anytime.

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