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What is QuickBooks Error PS038 & How Do I Fix It?

QuickBooks Error PS038
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Encountering QuickBooks Error PS038 can be a frustrating experience, especially when you’re in the middle of running payroll and paychecks. The QuickBooks Error PS038 appears when paychecks get stuck as “Online to Send” while running payroll, calculating taxes, or downloading tax table updates. The error disrupts the payroll processing and doesn’t allow you to send the employee’s payroll data. Error message for error code PS038 says, “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]” The error message clearly indicates that the primary reason behind this is an inactive payroll subscription, so you need to verify your payroll subscription to resolve the error PS038.

QuickBooks Error message PS038

However, in this blog, we have explored the other possible reasons behind this error and have provided troubleshooting steps to help you overcome it effectively.

Why did I end up with a PS038 error while running payroll? Get in touch with our experts and get the answers to all such queries on QuickBooks payroll errors. Dial our Asquare Cloud Hosting Helpline Number +1.855.738.0359. Our team is available 24X7 for your assistance if your Intuit paycheck not working in Pro, Premier & Enterprise.

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What Are The Primary Causes Of QuickBooks Error Code PS038?

Several reasons may cause the Intuit QuickBooks error code PS038. Here, we have mentioned some of the major reasons that promote the Inuit payroll error while updating QuickBooks.

  1. While sending Paychecks online: The payroll error code PS038 in QuickBooks appears when you try to send paychecks via online mode, but the paycheck gets stuck as “Online to send“.
  2. Data Discrepancies: One of the primary reasons behind the QuickBooks PS038 is the damaged company file. Along with affecting other files, it can affect your system as well.
  3. While Recovering the latest payroll update: The issue may occur while you try to recover the latest QB payroll updates and validate your payroll subscription.

Important Factors Before Resolving Error PS038 In QuickBooks

We understand that your work is being hampered due to the QuickBooks Desktop Error PS038. Before you proceed, there are certain points that you must take into consideration to fix the ps038 QuickBooks efficiently:

  1. You must update the QuickBooks software as per the latest available version.
  2. Before you proceed with the troubleshooting, create a backup of your company file and payroll data.
  3. Install the latest updates of the payroll tax table in your QuickBooks Desktop application.

Follow the next part of the article to learn the steps to troubleshoot PS038 in QuickBooks desktop. Remember, the steps are a bit technical and are required to be followed in order, so make sure to perform them carefully. If you require any assistance, then connect with our experts anytime.

How To Resolve QuickBooks Payroll Error Code PS038?

The step to resolve the QuickBooks error PS038 starts with sending usage data. The step takes some time to add paychecks to the Items to Send area. Then, you need to get the payroll updates. After that, when the update is completed, you need to identify the stuck QuickBooks payroll checks and then go for the Verify and Rebuild data process. Lastly, you need to toggle the stuck paychecks to complete the troubleshooting process.

Now, check the detailed Steps below if QuickBooks payroll update not working.

Step 1: Resend Payroll Data/Usage Data after Updating QB

Depending on the kind of payroll service that you have, you can follow either of the below steps:

  • Firstly, click on My Payroll Service under the Employees menu. Then, select the Send Usage Data option. 
  • Alternatively, you may also select the Send Payroll Data option from the Employees menu.
click on My Payroll Service under the Employees menu
  • Now, choose to Send All in the Send/Receive Payroll Data window, and if asked for, enter the service pin..

If the send is successful, then try to get payroll updates again. However, if you still see the error, then proceed to the next step. 

If the send is unsuccessful, then you can connect with our experts for further assistance.

Step 2: Find and check the “Online To Send” Paychecks from the Record

With the steps mentioned below, you will get all the Inuit paychecks that are stuck. You need not edit or delete the paychecks if they are stuck as ‘online to send.’ You just have to note down the number of matches in the bottom right corner of the Find window. Further, to keep track, make sure to note down the oldest and newest stuck paychecks.

Find Paycheck stuck as “Online to Send" by going on find option under edit menu.
  • Firstly, select Edit> Find> Advanced tab.
  • From the Choose Filter menu, search for Filter list and select Detail Level
  • Now, choose the Summary only option.
  • Again, under the Choose Filter menu, look for the Filter list and select the Online Status option.
  • From the drop-down menu, click on the Online to Send option.
  • Afterward, select Find, and you’ll see paychecks that weren’t sent to Intuit. Take note of the “Number of matches” on the Find window.
  • Lastly, you need to Run a verify data utility from the Verify and Rebuild data tool. It will display all the stuck paychecks.
  • For that, navigate to Windows and choose Close All.
  • Now, click on File and then on Utilities.
  • Choose Verify Data.

Step 3: Run Verify and Rebuild Data tool

Before you run the Rebuild data tool, make sure to take a backup of your company data.

Run Verify and Rebuild Data tool by clicking Rebuild Now.
  • Click on Rebuild Now. Once the rebuild process is completed, it will show the status of stuck Inuit paychecks. 
  • Now try to download your payroll updates again; if you can not complete the update process and still see the error, proceed to the next step.

Step 4: If an Error occurs even after Rebuild, Toggle the Stuck Paychecks

If you are wondering how to delete a pending payroll in QuickBooks desktop, follow the step-by-step instructions given below:

  • To begin, search and open the first paycheck on the list. Then, select the Paycheck Detail option.
  • In the Earnings section of the Review Paycheck window, you have to add the same earnings item as the last earnings item. 
  • It will pop up a Net Pay Locked message on your screen. Click on NO to close the message.
  • Now, select the Rate field of the new earnings item that you have added.
  • Make sure that there is no change in the taxes and Net Pay. Further, click on OK to save all the required changes.
  • Select Yes, when you receive the Past Transaction message.
  • Click on Save followed by Close to close the paycheck.
  • Select Yes when the Recording Transaction warning message flashes on your screen & open the paycheck again.
  • Afterward, select the Paycheck Details icon and delete the earnings items that you added in the Earnings section.

NOTE: Before you delete or recreate the paychecks, make sure that the earnings section doesn’t have blank line items.

  • Again, check that no change is made in the taxes and Net Pay. Then, click on OK> Save> Close to close the paycheck.
  • Lastly, repeat the same steps for all the paychecks that have Online to Send status. Once done, try to send Usage Data once again.

After this, you have to download the latest tax table in QuickBooks Payroll by following the below-given steps:

Keep Reading: Check Latest QuickBooks Payroll Tax Table Update.

  • Click on the Get Payroll Updates option from the Employees menu.
  • Then, mark the Download Entire Update checkbox and select the Download Latest Update option.

What if you don’t get the latest tax table?

Check for Payroll Updates after switching the company file

Learn what to do if QuickBooks is not calculating payroll taxes here:

If you have another company to do payroll in, open that file and look for the latest payroll updates. When found, open the original file and try to get the Payroll Update again. If the update completes, it will allow you to create and send payroll. You must know that this won’t remove the PS038 error message in the original company file.

How Does Payroll Update Error Affect Business Accounting?

No doubt, QuickBooks payroll Error PS038 restricts you from updating the payroll. Otherwise, it will affect other payroll activities like payroll tax calculation and paycheck creation in some of the different ways as listed below:

  1. It Degraded the Windows performance: The moment you end up with Error PS038 while updating payroll, it crashes your active window. Along with that, your processing speed is reduced, and task completion time is enhanced.
  2. Payroll Update Process is Hindered: It hinders your payroll update process, and thus you won’t be able to proceed with the update.
  3. Error while sending a paycheck: Sometimes, the QuickBooks error PS038 leads to data damage, due to which you need to check your records while handling paychecks.

These methods listed above should help you fix QuickBooks error PS038, unable to update payroll. However, PS038 is a tricky situation, and there are chances that you might face difficulty in resolving it. It is recommended that you take the assistance of a technical expert with sound knowledge of QuickBooks problems. Contact us at +1.855.738.0359 and connect with our QB ProAdvisors to resolve the QuickBooks errors in the quickest way!

Frequently Asked Questions On QuickBooks Error PS038

1. What is PS038 QuickBooks payroll update unable to send usage data?

PS038 is a QuickBooks payroll update error when you are unable to download tax table updates due to problems in QuickBooks or company files. The PS038 error hinders the company operations and paycheck calculations and deposits. To ensure that your tax calculations and reports are up-to-date and as per the latest legal compliance, fix the payroll update error and download the latest tax table updates before processing any paychecks. 

2. Why does QuickBooks payroll won’t update error ps038 occur?

QuickBooks payroll fails to update owing to the error code ps038 in QuickBooks. This occurs due to reasons like damaged company files, outdated QuickBooks Desktop, invalid QuickBooks subscription, etc. If the issue persists after updating QuickBooks Desktop, follow the troubleshooting steps listed in the blog.

3. How can I fix payroll update error ps038?

It is a wholesome process to troubleshoot and fix QuickBooks payroll update error PS038. The steps include updating Windows and QuickBooks Desktop and attempting to send usage or payroll data after that. If the problem persists, run the verify data utility to identify stuck checks and then rebuild the data. For detailed steps to resolve the error code PS038 in QuickBooks, go through our comprehensive blog.

4. Why is my QuickBooks unable to send payroll updates after the rebuild?

You can verify and rebuild the data utility to fix the PS038 error in QuickBooks Desktop. However, sometimes the rebuild data operation might be unable to resolve the stuck paychecks. It might be because there is a pending accountant copy or because the condensed data has been performed on QuickBooks data files for the same data as the stuck paychecks. In that case, consider canceling or toggling stuck paychecks in QuickBooks.

5. How To Run Payroll In QuickBooks?

To run payroll in QuickBooks, set up payroll details, enter employee information, create paychecks, review and approve payroll, print checks or enable direct deposit, pay taxes, generate reports, and file tax forms at year-end. Backup data regularly and consult a professional for any uncertainties.

6. How To Cancel A Payroll In QuickBooks If It Stuck?

To cancel a payroll in QuickBooks, go to the Payroll Center, select the payroll you want to cancel, click on “Edit,” and choose “Cancel Payroll.” Confirm your decision and follow any additional prompts. Keep in mind that canceled payrolls cannot be reversed, so review before proceeding.

Top Hints How To Fix QuickBooks Error PS038 While Updating Paychecks
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Top Hints How To Fix QuickBooks Error PS038 While Updating Paychecks
Can't run Payroll activities due to QuickBooks Error PS038 after updating paychecks? Follow to correctly setup payroll & easily edit, delete, or cancel paycheck records, if verify data is stuck or un-processed in Desktop/Online.
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