If you're experiencing payroll issues in QuickBooks, don't panic — there's help for that. You can contact QuickBooks payroll specialists at +1(800) 780-3064 for instant help.

QuickBooks Error PS038 is perhaps the most prevalent payroll error users encounter. It normally occurs when you're processing payroll or updating tax tables, but QuickBooks freezes along the way. You may get a message like this:

"You've retrieved the latest payroll update and validated your Payroll subscription."

Essentially, this means that QuickBooks is having trouble completing communication between your local company file and Intuit's payroll servers, which may cause payroll tasks to stop responding or fail to process.

Common Signs of Error PS038


You might be dealing with Error PS038 if you notice these symptoms:

  • Paychecks show "Online to Send" and never completely process.
  • Payroll is not pulling anymore or the PS038 message keeps showing.
  • You never run payroll until the error is fixed.
  • You have to keep switching paycheck statuses between on and offline to get things to work temporarily.

Because payroll is such an essential function for any business, this error can cause major disruptions — from delayed paychecks to compliance issues.

Why Does QuickBooks Error PS038 Happen?

Several factors can cause this error to appear. Here are the most common reasons:

Cause

Description

Stuck paychecks

Some paychecks are stuck in the "Online to Send" state and don't get transmitted properly.

Outdated QuickBooks version

Running an older version of QuickBooks that's not compatible with the latest payroll system.

Corrupted company file

Damaged payroll or company data can interrupt the send/receive process.

Inactive payroll subscription

If your subscription has expired or isn't verified, QuickBooks blocks updates.

Firewall or antivirus interference

Security software may prevent QuickBooks from connecting to Intuit servers.

Incorrect date/time settings

If your system clock is off, QuickBooks might fail to establish a secure connection.

Missing program files

Damaged or missing QuickBooks components can trigger PS038.

Server issues

Sometimes, the problem is on Intuit's end due to temporary outages or maintenance.

How to Fix QuickBooks Error PS038 — Step by Step

Before you start, make sure to back up your QuickBooks company file to prevent data loss.

1. Update QuickBooks and Create a Backup

  • Go to Help → Update QuickBooks Desktop.
  • Click on the Update Now tab, choose Reset Update, and click Get Updates.
  • When the updates have been installed, exit and restart QuickBooks.

And last, create a backup of your company file.

2. Send Payroll or Usage Data

  • Open Employees → My Payroll Service → Send Usage Data.
  • If that option isn't available, go to Employees → Send Payroll Data.
  • In the Send/Receive window, click Send All and enter your Payroll Service PIN if prompted.
  • Once it's sent, try updating payroll again.

3. Find and Fix Stuck Paychecks

  • Go to Edit → Find, then open the Advanced tab.
  • Choose Detail Level = Summary Only and Online Status = Online to Send.
  • Click Find to view all stuck paychecks.

For each paycheck found:

  1. Open the paycheck and click Paycheck Detail.
  2. Add the last earnings item again (to refresh the entry).
  3. When asked "Net Pay Locked," choose No.
  4. Verify that the net pay hasn't changed, then click OK.
  5. Save and close.
  6. Reopen the paycheck, delete the duplicate item you added, confirm changes, and save again.
  7. Repeat this process for all stuck paychecks.

Then, try to run Get Payroll Updates once more.

4. Verify and Rebuild Your Data

  • Go to File → Utilities → Verify Data.
  • If issues are found, select Rebuild Data.
  • Once it's done, verify the data again to make sure all issues are fixed.

5. Run QuickBooks as Administrator

  • Close QuickBooks completely.
  • Right-click the QuickBooks icon and choose Run as Administrator.
  • Try to process payroll again.
  • Also, ensure your Windows account has full permissions for QuickBooks folders.

6. Check Firewall or Security Software

  • Temporarily disable your antivirus or firewall.
  • Try sending payroll data again.
  • Add QuickBooks and payroll services to your firewall's exception list.

7. Repair or Reinstall QuickBooks

  • Go to Control Panel → Programs and Features → QuickBooks → Repair.
  • If that doesn't work, uninstall and reinstall QuickBooks Desktop.
  • Restore your company file after reinstalling.

8. Restore from a Backup (If Data Is Severely Damaged)

If none of the above works and you suspect deep corruption, restore a backup created before the issue began and test payroll there.

When to Call for Professional Help

If the problem is still troubling you after going through those steps, or if you're simply not comfortable doing the rebuild yourself, it's best to reach out to a QuickBooks expert.

You will receive expert guidance and remote troubleshooting help by calling +1(800) 780-3064. You'll be put in touch with a certified payroll technician who can help with the data repair, recover from corruption, and get payroll running smoothly again.

Tips to Prevent Error PS038 in the Future

  • Keep QuickBooks updated at all times.
  • Back up your data regularly (store it in multiple safe locations).
  • Avoid forced shutdowns of QuickBooks.
  • Monitor paycheck status — don't let "Online to Send" transactions accumulate.
  • Check your payroll subscription before running payroll.
  • Test after every fix to confirm payroll is working correctly.

Final Thoughts

QuickBooks Error PS038 can be frustrating, especially if it delays your payroll. The good news is — it is fixable. Most of the time, the problem will resolve itself by simply updating QuickBooks, fixing paychecks stuck in the unprocessed queue, and verifying your data.

If you prefer to have a certified professional resolve the issue quickly and safely, you can always call +1(800) 780-3064 and they will give you better assistance. They will walk you through the fixes and ensure your payroll is up and running without a hitch.