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QuickBooks Error PS038: Stuck Paychecks/Can’t Update Payroll

• 
• By Jonathan Browns
• May 18, 2026
• Accounting
• QuickBooks Payroll
• 7 min read

You might encounter issues when running payroll or updating tax tables. Often, this could coincide with QuickBooks error PS038 appearing on your screen. The error can occur because paychecks get stuck as “Online to send” and interfere with payroll processes. 

However, there are other factors that can be contributing to the problem. In this blog, we will go into depth on such reasons and walk you through the exact methods you can try to troubleshoot the problem.

What is QuickBooks Error PS038?

QuickBooks error Ps038 is a payroll issue that you can encounter when trying to update the tax table or send paychecks.

This is the kind of error message you might see on your screen:

“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].”

You might find yourself with error code PS038, and unless you resolve it, you will not be able to resume payroll operations. 

Potential Reasons for Error Code PS038 in QuickBooks Desktop

Before you can go about fixing the QuickBooks payroll error PS038, you need to understand various factors that cause it. Here is a list of all the potential reasons for this error:

• The payroll subscription might be inactive or needs refreshing
• You might have set up payroll incorrectly, or there might be an issue with employee data
• The payroll frequency is not set correctly
• Your QuickBooks Desktop might be outdated, leading to payroll problems
• There are either stuck or duplicate paychecks in your payroll
• Windows Firewall or Antivirus is blocking QB’s connection to the internet
• There is an issue with the network connection or the internet settings
• The company file data might be corrupt
• QuickBooks might be unable to verify the payroll service subscription

Some Things to Ensure Before You Troubleshoot Error Code PS038

Before you go on and carry out comprehensive troubleshooting for payroll error code PS038, there are some things you need to ensure for a better experience.

Update Your Desktop Application

You need to make sure that your QB desktop application is updated to the latest release. This will mean that you have the security patches, software enhancements, and bug fixes installed on your computer. 

Update Tax Table

The next thing you need to do is update your tax table if you haven’t. A problematic tax table might lead to errors.

However, if you come across an error when updating the tax table, we will see how to address that in the next section. 

Create Local Backup

Before troubleshooting a QB Desktop error, it is helpful to create a company file backup. This ensures you do not lose crucial data if something goes wrong. 

Now, let us see how you can address the error.

How to Fix QuickBooks Error PS038: A Payroll Issue

In this section, we will take you through the steps of troubleshooting QuickBooks error PS038. This involves checking various aspects such as internet and firewall settings, payroll subscription, company data, and more. 

Send Payroll Usage Data

You will need to send payroll usage data to Intuit. The following steps will show you how:

• Open the Employees menu in QuickBooks 
• Navigate to My Payroll Service 

• Choose Send Usage Data or Send Payroll Data
• Provide the Payroll PIN if asked for

If the transmission goes alright, you should resume getting payroll updates. 

Look for Paychecks Stuck as ‘Online To Send’

Stuck paychecks as ‘Online to send’ cause problems in carrying out payroll operations.

The following steps will help you identify the stuck paychecks (Online to send).

• Open the Edit menu and 
• Choose Find and click on the Advanced section
• Go to the Choose Filter section
• From the Filter list, choose Detail Level
• Click on Summary Only
• Once back to the Filter list, scroll down and find Online Status
• Choose Online Status followed by Online to Send
• Finally, click on Find

One can also create a Payroll Summary report for the transaction date, send it to Excel, and save it. 

You will now see paychecks that have been stuck and couldn’t be sent to Intuit. Note the older such paycheck. You will need this information later.

Moreover, you need to note the Number of matches you see in the Find window.

• Finally, get rid of the Find window

Verify and Rebuild the Company Data

The next thing you need to do is verify and rebuild the company file. Begin by verifying your company file. This will spot the errors in your company data.

Next, rebuild the company file. You can check out our dedicated article, which will guide you through the nuances of these two steps.

However, if that still doesn’t resolve the QuickBooks error PS038, you will need to toggle stuck paychecks.

Toggle Stuck Paychecks

There is a hack to manually refresh the status of paychecks, and that is by editing and resetting them.

• Open a paycheck that is stuck as Online to send
• Go to Paycheck Detail
• In the Earnings section, add the last earning item appearing on the list. This will cause the last item to appear twice
• Choose No when you see the Net Pay Locked message
• Ensure this doesn’t affect the tax amounts and net pay, and they remain unchanged
• When you see the Past Transaction message, choose Yes
• Click on Save & Close
• When you see the Recording Transaction message, choose Yes
• Now, go back to the same paycheck and open Paycheck Details
• Delete the duplicate item you had added earlier
• Ensure this doesn’t affect the tax amounts and net pay, and they remain unchanged
• Finally, choose OK.

Follow these steps for all paychecks. 

Review Your Payroll Service Subscription

Firstly, close all QB windows open and restart the computer. Then follow the steps below:

• Launch QB Desktop and open the Employees menu
• Navigate to My Payroll Service and choose Manage Service Key
• You will see the Service Name and Status
• Make sure the Service Name is correct, and the Status is Active
• Choose Edit
• Check and verify the service key number and make sure it is correct. Enter the correct key if it is not correct.
• Choose Next and unmark the Open Payroll Setup box
• Tap on Finish

However, if this doesn’t resolve the payroll error code PS038 in QuickBooks, register the account.

Register Account 

Open QuickBooks Desktop and follow the steps below to register your account and update it

• To fetch the Product Information window, press F2 or Ctrl + 1 key
• Check beside the license number if it is activated. 

However, if the license number isn’t activated, you will need to register your account. Once done, update your QuickBooks Desktop application.

Review the Firewall Settings

Windows Firewall might block QuickBooks ports. QB programs need access to certain ports to communicate with Intuit servers. 

You will need to set up Windows Firewall to allow QuickBooks through it. Once done, restart your computer and resume payroll operations.

Create Antivirus Exceptions for QB Programs

However, if you also have an antivirus or security software installed on your computer, you will need to create antivirus exceptions for QB programs. This is because the antivirus or security software might prevent QB programs from running in the background or connecting to the internet. 

You need to address that to fix the payroll update error PS038 in QuickBooks.

Verify the Internet Settings

Internet settings need to be favorable to QuickBooks for it to be able to carry out uninterrupted operations. Check and make sure the internet connection settings are configured correctly.

• Launch QB Desktop and choose Internet Connection Setup
• Now, tap on the Use my computer’s Internet connection settings to establish a connection when this application accesses the Internet option
• Select Next
• Navigate to Advanced Connection Settings 
• Click on the Advanced tab and then choose Restore Advanced Settings
• Finally, choose OK followed by Done

Now, check if the QuickBooks error PS038 you encountered earlier has been resolved.

Run Quick Fix my Program

Program problems lead to an error while updating the tax table or carrying out payroll operations sometimes. 

To resolve it instantly, you can take the help of Tool Hub. First, make sure you have the latest version of QuickBooks Tool Hub installed on your computer.

• Close any open windows of QuickBooks
• Launch the Tool Hub and navigate to the Program Problems tab
• Choose Quick Fix my Program. 

Reset the CPS Folder

You can try a pro hack to address it when the standard updates fail by resetting the CPS folder.

• Close the QB Desktop application
• Go to C:\Program Files (x86)\Common Files\Intuit\QuickBooks\CPS. However, for 64-bit versions 2022-2026, you will need to check C:\Program Files\\Intuit\QuickBooks\CPS
• Right-click on the CPS folder
• Choose Rename, and type .OLD at the end of the name so that the extension changes.
• Now, restart the application and navigate to Employees, followed by Get Payroll Updates. 

This will prompt QuickBooks to create a fresh update directory. 

Find the Hidden ID Via Advanced Log Analysis

You can find problematic paychecks with an advanced log analysis in the following manner.

• Launch QB Desktop
• Now press F2 followed by F3
• In the Open File tab, choose QBWin.log
• Press Ctrl + F keys, enter PS038, and look for it.
• In the same manner, look for the Online to Send phrase
• You will thus find the Transaction ID of the stuck check if it happened to be hidden in the standard Find operations

Edit such transactions and resume payroll operations to prevent update error PS038 in QuickBooks Desktop

Restore a Backup of the Company File

If nothing helps, you can restore a company file backup that you saved recently. However, remember that this will set you back to the progress at the time of creating the backup. 

Some Other QuickBooks Payroll Errors of PSXXX Series

QuickBooks error PS038 belongs to the PSXXX series of errors. PSXXX series errors are associated with payroll operations and tax table updates.

Error PS032	Error PS033
Error PS034	Error PS036
Error PS037	Error PS077

Expert Tips to Prevent Payroll Errors in QuickBooks Desktop

You can adopt healthy practices for proactive maintenance and reduce payroll errors (avoid running into them most of the time)

• Make sure to periodically update your QuickBooks Desktop application and payroll.
• Also, update the operating system (Windows or macOS) to refresh software components and avoid running into compatibility issues.
• Save a regular backup of your company file on a secure drive. They can be handy anytime.
• Before submitting payroll data or sending paychecks, verify the employee information and double-check everything to avoid errors.
• Instead of manual journal entries, use the dedicated QuickBooks Payroll Center to run paychecks.
• Check your computer time and date, and make sure it is accurate before you run the tax table update or payroll operation.

In case you see “Accountant Changes Pending” on your title bar, you will need to wait until you incorporate the changes before you can resume.

Final Words

Payroll operations are an integral part of business operations. Delays in paychecks can lead to employee dissatisfaction and noncompliance. To resume calculating payroll taxes and sending paychecks, you need to have an updated payroll tax table. The above methods should help you resolve QuickBooks error PS038 and get tax table updates.

Frequently Asked Questions

How to fix QuickBooks payroll update error PS038?

To resolve the payroll update error PS038, look for stuck paychecks, edit and resave them. Moreover, verify your payroll subscription, update your QB application, check your internet and firewall settings, and send payroll usage data.

Why do I see the PS038 error?

QuickBooks error PS038 can appear because of an inactive payroll subscription, outdated or corrupt tax tables, network interruption, a stuck paycheck, or data damage. Restrictive firewall or internet settings can also cause the problem.

Is QuickBooks having an issue with payroll today?

As of today, there are no widespread reported outages for QuickBooks Payroll. While users might face issues due to bank or system updates, these issues are subjective. Currently, all systems are operational.

How to find stuck paychecks in QuickBooks Desktop?

You can use the Find feature in the Edit menu to look for the stuck paychecks. In the Find menu, navigate to the Advanced section, and choose Online status from the filter list.