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A Troubleshooting Guide for QuickBooks Payroll Error PS038

• 
• By Jonathan Browns
• Feb 03, 2026
• Accounting
• QuickBooks Payroll
• 7 min read

Payroll updates are crucial for maintaining the latest tax rates and ensuring accurate tax calculations, helping businesses complete payroll processes on time and stay compliant with regulatory requirements. However, even a seemingly simple payroll update can become challenging when users encounter QuickBooks error PS038: “Online to Send.”

This error usually occurs when one or more paychecks get stuck in the system, preventing them from being sent successfully. As a result, QuickBooks fails to establish a proper connection with Intuit’s servers, disrupting payroll updates and delaying critical payroll tasks.

Understanding the causes of this error and applying the right troubleshooting steps is essential to restoring smooth payroll operations.

What Causes Payroll Update Error PS038 in QuickBooks?

Multiple reasons may be responsible for payroll error code PS038 in QuickBooks Desktop. Let’s examine each one-by-one:

• Payroll data fails to send to Intuit servers
• Corrupted or damaged paycheck records
• Outdated QuickBooks Desktop version
• Inactive or incorrect payroll subscription
• Payroll service key not synced properly
• Background QuickBooks processes are not responding
• Windows Firewall is blocking payroll communication
• Internet connection interruption during payroll update
• Damaged company file data

Best Ways to Troubleshoot QuickBooks Error PS038 When Updating

Below are the most suitable troubleshooting steps to help you resolve QuickBooks Error PS038 and successfully update payroll:

1. Identify and toggle the stuck paycheck

Below is a clear, step-by-step guide to help you identify and toggle a stuck paycheck to resolve error code PS038 in detail:

a. Update QuickBooks and backup your company file

An up-to-date version of QuickBooks is essential to ensure that all necessary features are not outdated when updating QuickBooks, and it also provides a quick refresh with the latest security patches for added safety.

We also recommend that you create a backup of your company files to protect your data and ensure it remains safe if something goes wrong during troubleshooting.

b. Send your payroll data or usage data

• Go to Employees at the top.
• Select My Payroll Service, then Send Usage Data. If you don’t find this option, proceed to the next step.
• Navigate to Employees and choose Send Payroll Data.
• In the prompted Send/Receive Payroll Data window, click Send All.
• Now, enter the payroll service PIN when prompted.

If the submission goes through, try downloading the payroll updates again. If the issue persists, proceed to the next steps.

If the submission fails, reach out to us for assistance.

c. Identify stuck paychecks

• Go to Edit in QuickBooks.
• Select Find.
• Move to the Advanced tab.
• In the Choose Filter section, click on Detail Level from the Filter list.
• Hit on Summary Only.
• Return to the Filter list.
• Scroll down to select Online Status, then click on Online to Send.
• Choose Find, then look for the paychecks you couldn’t send to Intuit.
• Note down the “Number of matches” on the Find window. Proceed to Step 4.

d. Verify and Rebuild your data

Running the Verify and Rebuild Data utilities in QuickBooks Desktop lets you identify the stuck paycheck, then run a quick repair to the internal data damage that might be preventing payroll updates.

e. Toggle the stuck paychecks

Toggle the stuck paychecks we found in step 3.

• Locate and open the oldest stuck paycheck.
• Click on the Paycheck Detail button.
• In the prompted Review Paycheck window. Scroll down to Earnings, add the very same earnings item as the last earnings item to your list. Example: If the final entry in the list is Hourly Rate, append an additional earnings item called Hourly Rate to the list.
• Select No on the Net Pay Locked message.
• Ensure you don’t change the tax amounts or the net pay. Then, click OK.
• Click Yes only if you see a Past Transaction message.
• Select Save & Close to close the paycheck.
• On the Recording Transaction warning message, click Yes.
• Open your paycheck again.
• Hit the Paycheck Details button.
• Now, delete the earnings items that you just added in the Earnings section.
• Ensure the tax amounts and net pay remain unchanged, then select OK.
• Repeat these steps for each stuck paycheck identified in Step 2.
• Once complete, repeat Step 1 and download the tax table update again.

2. Verify QuickBooks payroll subscription

An active payroll subscription is required to access the payroll services and even to update them to the latest release available.

• Launch QuickBooks Desktop.
• Sign in to the QuickBooks Desktop company file as a Primary Admin or Payroll Admin.
• Go to Employees, then select Payroll Center.
• Go to the Payroll tab.
• Now, look for which payroll service you use under Subscription Statuses.

3. Run Quick Fix my Program

The Quick Fix my Program will shut down all the programs running in the background that QB uses and then runs a quick repair to the software. Learn how to run a quick repair to QB:

Note: Make sure to download and install QuickBooks Tool Hub (1.6.0.8) to the latest release.

• Launch the QuickBooks Tool Hub.
• Click on Program Problems.
• Select Quick Fix my Program.
• Open QuickBooks Desktop and then your company file.

4. Configure the Windows Firewall settings

Windows Firewall is a system security application that controls the ports used for incoming and outgoing data. If it detects any threat in the data or from the source, the security application blocks it from running on your computer. If Windows Firewall detects an issue with the payroll update file or the software, you may encounter QuickBooks error PS038. To resolve this error, make sure to configure the Windows Firewall settings for QuickBooks Desktop.

Conclusion

Finally, we’re concluding this blog with a list of the causes of QuickBooks Payroll Error PS038 and how to fix them. You can resolve this error by toggling the stuck paycheck, verifying your payroll subscription, and following the other steps mentioned in this blog.

For further assistance, we recommend consulting with professionals. Dial our toll-free number Call Us : +1-866-408-0444 to speak with a QuickBooks ProAdvisor today!

Frequently Asked Questions (FAQ’s)

1. What does PS038 mean in QuickBooks?

Ans. Error code PS038 means that something is interfering with the communication between the software and Intuit’s servers, which often requires manually clearing a stuck paycheck or updating to the latest version of the payroll services.

2. How do I find stuck paychecks in QuickBooks Desktop?

Ans. To find stuck paychecks (usually showing as “Online to Send” and causing error PS038) in QuickBooks Desktop, use the Advanced Search feature. Go to Edit > Find, select the Advanced tab, filter by Detail Level (Summary Only), then set Online Status to Online to Send to locate them.

3. How do I fix error PS038 in QuickBooks payroll?

Ans. To fix QuickBooks payroll error PS038, which occurs when paychecks are stuck as “Online to Send,” update your QuickBooks to the latest release, ensure you have the current tax table, run Verify/Rebuild Data, and toggle (open and save) the affected paychecks.

4. How to fix QuickBooks payroll subscription issue?

Ans. To fix QuickBooks payroll subscription issues, verify and update your billing information, then refresh your data by selecting “Sync License Data Online” in the Help menu. Ensure your software is updated, or reactivate the service via the Employees > My Payroll Service > Manage Service Key.

5. Why is QuickBooks Payroll not working?

Ans. QuickBooks Payroll may not work due to an inactive subscription, outdated software, internet connection problems, or, for desktop users, corrupted company files. Other common causes include firewall interference or incorrect direct deposit timing.