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Fix QuickBooks Error PS038: Payroll Update Stuck Issue

Published: 9 January, 2026 | Updated: 9 January, 2026

Error Code Experts Staff

Author

Error Code Experts Staff
QuickBooks Error PS038

QuickBooks Error PS038 appears during payroll updates when QuickBooks Desktop fails to send paychecks to Intuit servers. The error stops payroll processing and blocks tax table updates. Payroll functions stop until the issue is resolved.

This article explains what QuickBooks Error PS038 means, why it occurs, how to identify it, and the exact steps required to fix it. The guide follows a basic-to-advanced troubleshooting order and ends with expert assistance options.

What is QuickBooks Error PS038?

QuickBooks Error PS038 is a payroll update error that occurs when a paycheck remains stuck as “Online to Send.” QuickBooks cannot verify or transmit payroll data to Intuit, which blocks payroll updates and tax table downloads.

The error mainly affects QuickBooks Desktop Payroll users.

Why does QuickBooks Error PS038 occur?

QuickBooks Error PS038 occurs due to payroll data conflicts. Common causes are listed below:

  • An unsent or stuck paycheck in payroll history
  • Incorrect payroll subscription status
  • Damaged payroll data file
  • Outdated QuickBooks Desktop version
  • Incorrect employee setup or inactive payroll items

How can you identify QuickBooks Error PS038?

QuickBooks Error PS038 shows clear indicators during payroll operations:

  • Payroll update fails repeatedly
  • Error code PS038 appears on the screen
  • Paychecks show “Online to Send” status
  • Tax table does not update
  • Payroll processing freezes

What are the steps to fix QuickBooks Error PS038?

Resolving QuickBooks Error PS038 requires verifying payroll data and clearing stuck paychecks. Follow the solutions below in order.

Solution 1: Update QuickBooks Desktop to the Latest Release

An outdated QuickBooks version causes payroll sync issues.

Steps:

  1. Open QuickBooks Desktop.
  2. Click Help > Update QuickBooks Desktop.
  3. Select Update Now.
  4. Click Get Updates.
  5. Restart QuickBooks after completion.

Solution 2: Verify Payroll Subscription Status

Inactive payroll subscriptions block Intuit server communication.

Steps:

  1. Open QuickBooks Desktop.
  2. Click Employees > My Payroll Service > Account/Billing Info.
  3. Sign in using Intuit credentials.
  4. Confirm payroll service status is active.

Solution 3: Identify and Resend Stuck Paychecks

Stuck paychecks trigger Error PS038.

Steps:

  1. Click Edit > Find.
  2. Select Advanced Find.
  3. Choose Payroll Transaction Type.
  4. Search for Online to Send status.
  5. Open each paycheck.
  6. Click Paycheck Detail > Review.
  7. Save and close the paycheck.

Solution 4: Run Verify and Rebuild Data Utility

Payroll data damage causes transmission failure.

Steps:

  1. Click File > Utilities > Verify Data.
  2. Wait for verification to complete.
  3. Click File > Utilities > Rebuild Data if errors appear.
  4. Backup the company file when prompted.

Solution 5: Send Payroll Data Manually

Manual transmission clears pending payroll data.

Steps:

  1. Click Employees > Send Payroll Data.
  2. Enter Intuit login credentials.
  3. Complete the transmission process.

Is there an automated tool to fix QuickBooks Error PS038?

QuickBooks Tool Hub includes payroll repair utilities. The tool repairs payroll components and resolves update-related issues. Download the latest QuickBooks Tool Hub and run the Payroll Issues repair module.

How can I prevent QuickBooks Error PS038 in the future?

QuickBooks Error PS038 prevention requires payroll maintenance. Keep QuickBooks updated. Send payroll data after every payroll run. Avoid force-closing QuickBooks during payroll processing. Verify payroll subscription status monthly.

What if QuickBooks Error PS038 is not fixed after troubleshooting?

QuickBooks Error PS038 may persist due to deep payroll data corruption or Intuit sync conflicts. Advanced diagnostics become necessary in such cases.

How can our experts assist you in resolving QuickBooks Error PS038?

ErrorCodeExperts provide direct payroll issue resolution. Our team fixes stuck payroll data, repairs company files, and restores payroll services. Just dial +1800-949-1746 and connect with our certified experts.

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Error Code Experts Staff

Author

Error Code Experts Staff

We are a team of certified IT and financial systems specialists with over 10 years of experience in fixing accounting software issues. We specialize in system integration, data migration, and diagnostics - making it easier for accountants and business owners to resolve complex errors. When not solving technical problems, our team enjoys refining internal tools and sharing practical fixes with the wider accounting community.