How to Fix QuickBooks Desktop Payroll Error PS038 in 2025

Irritating errors are a constant guest on QuickBooks, one of which users often report, PS038. The reasons can be many, like stuck paychecks, outdated or corrupted tax tables or network data files, internet connectivity issues, and even problems in the company file itself. You can address QuickBooks Payroll Error PS038 in many ways if you know the exact cause. Mostly, it's always one of the above reasons, so try the troubleshooting techniques detailed in this blog. Let’s get going.

Checklist for Fixing QuickBooks Desktop Payroll Error PS038

Before you take the necessary measures, it is essential to fulfill the prerequisites for a smoother experience.

1. Create a backup of your QuickBooks company data file and payroll data. So you can avoid losing any information.

2. Check that you’re using the most current QB version, as outdated desktops can cause such errors.

3. Attempt to download the recently released payroll tax table updates.

4. To process the error-resolving techniques, login to your computer as an Administrator.

5. Check if you are working on QuickBooks in single-user or multi-user mode.

6. Also, network connectivity is advised.

Solutions to Resolve QuickBooks Payroll Error PS038 easily

Fixing the error code PS038 is necessary; otherwise, it will obstruct your workflow. You couldn’t update your tax tables; hence, there is no tax compliance. Therefore, here are the effective measures that will help you steer clear of the issue from QuickBooks.

Step 1: First, Backup and Update your Data in QuickBooks Desktop

Go to QuickBooks’ Help section and update your desktop to the latest version. After downloading the updates, you must create a backup of your company data files to proceed to the next steps.

Step 2: Try Sending Your Payroll/Usage Data

You need to check whether Intuit is receiving your data. So take these actions:

• In the Employees tab, choose My Payroll Service, then Send Usage Data.

• If the option is not visible, go to Employees and select the tab "Send Payroll Data."

• Now, you will move to the Send/Receive Payroll Data window; click Send All here.

• You might need to enter your Payroll Service PIN if prompted.

• If you can send the data successfully, try to update your payroll once again.

• However, if the send fails, you can take the next step or contact QuickBooks support for assistance.

Step 3: Look for Stuck Paychecks

You may have stuck paychecks that weren’t sent, are pending, or are still processing. Identify them and fix the issue.

• In QuickBooks, move to the Edit tab and press Find.

• Go to the Advanced tab and look at the Choose Filter section.

• In this section, select Detail Level from the Filter menu. Select the Summary Only option.

• Find the option "Online Status" and click on it.

• Choose the button Online to Send.

• Tap on the Find tab, and then you can see the paychecks that were unsent or failed to be sent to Intuit.

• Find Window will inform you of the number of matches you must note to move forward to the next step.

Read More: QuickBooks Payroll Update Not Working

Step 4: Attempt to Verify and Rebuild the Data

In this step, you must exit the Find window and verify the data. This will show you all the stuck paychecks. It is an important step to fix QuickBooks Error PS038.

To verify data:

• In QB, go to Window> Close All.

• Select the File tab, then Utilities and Verify Data.

• If QB detects any problem, it will notify you in this step or inform you that your data is clean.

• If your data is corrupted, you must rebuild it to fix the issue.

Note: Assisted payroll users must contact QuickBooks support before rebuilding.

To rebuild data:

• In QB, go to File> Utilities> Rebuild Data.

• Now, you’ll get a prompt to back up your company file. Click OK and Save to save your backup.

• When the rebuild completes, select OK to the message "Rebuild has Completed."

• After this, you must cross-verify that your issue is fixed by applying Verify Data again.

Try to download the latest updates of Payroll tax tables and update QuickBooks. Otherwise, apply the next method.

Step 5: Toggle Stuck Paychecks

• If reverifying the data finds the PS038 error again, these are the stuck paychecks you found in Step 3.

• Now, open the oldest dated paycheck that is stuck.

• Click on Paycheck Detail and go to the Review paycheck window.

• Below the Earnings section, add the same earnings item that is the last one on the list.

• After adding the item, check that the tax amounts and net pay remain the same, then click OK.

• If a past transaction message pops up, tap Yes.

• Hit Save & Close to complete the paycheck.

• Choose Yes if you get the Recording Transaction warning notification.

• Open the paycheck again and check the details.

• Now, you can delete the earning item you added in the previous steps.

• Reassure that the tax amounts and net pay remain unchanged; thus, click OK.

• For the stuck paychecks, repeat similar prompts and rectify them.

Once you’re finished with all these steps, return to Step 1, where you update your QuickBooks and get the latest Payroll tax tables. You’ll be able to download them successfully as you have cleared all the stuck paychecks.

Bottom Line!

QuickBooks Error PS038 can be corrected with the given solutions. It is a payroll update error commonly reported by QB users. Correcting the issue is important, or your payroll tasks will remain pending. To get instant troubleshooting assistance, you must seek a QuickBooks professional at Qbookshub, dial xxx-xxx-xxx. In fact, it is better to speak to a technician, as they are skilled and know how to deal with such problems.