Resolve QuickBooks Error PS038: Update & Payroll Fix Guide

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5 days ago
3 min read

QuickBooks Error PS038 typically arises when you’re trying to run payroll or update your payroll tax tables, and the software gets stuck in a loop, displaying the message:

“You have retrieved the latest payroll update and validated your Payroll subscription. We strongly recommend that you go online again before mm/dd/yyyy. [PS038]”

This means that a paycheck is stuck as “Online to send” and QuickBooks can’t process further payroll updates.

For a complete walkthrough, visit QuickBooks Error PS038.

Fix QuickBooks Error PS038 easily and resume your payroll updates—call +1-866-500-0076 for support.

What Triggers QuickBooks Error PS038?

Several system or software-related issues can contribute to this error. Here's a breakdown:

Common Causes of Error PS038

A paycheck is stuck with the “online to send” status.
You’re using an outdated QuickBooks version or payroll tax table.
Corrupted data in the payroll or company file.
Poor internet connectivity interrupting communication with Intuit servers.
Incomplete payroll update or interrupted process during transmission.

Signs You Are Facing Error PS038

Identifying the error early can help prevent bigger payroll processing issues. Watch for these signs:

You’re unable to send payroll data.
QuickBooks shows error message PS038 during payroll operations.
The software becomes slow or unresponsive when accessing paychecks.
Payroll updates fail to complete successfully.

How to Fix QuickBooks Error PS038 (Step-by-Step)

Before you begin, create a backup of your QuickBooks company file to avoid data loss during troubleshooting.

Step 1 – Update QuickBooks to the Latest Version

Keeping your software updated reduces the risk of known errors.

Open QuickBooks Desktop.
Go to Help > Update QuickBooks Desktop.
Click Update Now, check all options, and press Get Updates.
Once updated, restart QuickBooks.

Step 2 – Identify Paychecks Stuck in “Online to Send”

Open QuickBooks.
Press Ctrl + F to open the Find window.
Choose Advanced > Filter by Detail Level = Summary Only.
Add Paycheck to the transaction type.
Click Find and locate stuck paychecks marked Online to send.

Note down the paychecks so you can process or reissue them as needed.

Step 3 – Run the Verify and Rebuild Tool

QuickBooks offers built-in tools to scan and fix data damage.

Go to File > Utilities > Verify Data.
If errors are found, proceed with Rebuild Data.
Follow prompts to save a backup.
Once complete, verify again to ensure no errors remain.

Helpful Tip:If you're also encountering connectivity issues between your workstation and the server, you might want to check out QuickBooks Cannot Communicate With the Company File for resolution tips related to network errors.

Step 4 – Delete and Recreate Stuck Paychecks (If Needed)

If stuck paychecks cannot be sent:

Delete the original paycheck if it hasn’t been processed.
Recreate the paycheck with the same details and ensure it's processed correctly.

Important: Do not delete any paycheck that has already been paid or taxed without consulting your accountant.

Step 5 – Run Payroll Again

Once all checks are cleared and updates are installed:

Open Employees > My Payroll Service > Send Payroll Data.
If no paychecks are stuck, data should transmit successfully.
Confirm payroll updates have synced.

How to Prevent QuickBooks PS038 in the Future

An ounce of prevention is worth a pound of cure—especially in payroll. Follow these best practices:

Prevention Tips

Always update QuickBooks and payroll tax tables regularly.
Send payroll data immediately after payroll is processed.
Avoid interrupting the payroll update process.
Regularly verify and rebuild your company file to eliminate minor data issues.
Keep multiple backups to recover from corruption.

FAQs About QuickBooks Error PS038

Q1: Can I ignore Error PS038 if payroll is working?

No. Even if it appears functional, the error may lead to future sync or tax issues. Fix it promptly.

Q2: Is Error PS038 related to internet issues?

Partially, yes. If the software cannot send or receive data from Intuit’s server, it may trigger this error.

Q3: Will upgrading QuickBooks remove this error?

Upgrading might help if you’re using an outdated version, but stuck transactions must still be resolved manually.

Conclusion: Don't Let QuickBooks PS038 Halt Your Payroll

QuickBooks Error PS038 can feel like a frustrating roadblock when you're processing payroll. But with the right approach—updating software, clearing stuck paychecks, and verifying your company file—you can get things running smoothly again.

If the issue continues, avoid delays and contact an expert by calling +1-866-500-0076 for personalized payroll support.