5 Ways to Fix QuickBooks Cannot Run Payroll Error PS038

3 min readJun 2, 2025

QuickBooks payroll error PS038 appears when the user tries to install the latest payroll tax table update or when they try to send the paychecks online. The occurrence of this error prevents the payroll functions from working properly. Even after updating the payroll tax table, many users have reported getting the warning message “[PS038]: You have installed the latest payroll update and validated your Payroll subscription. We strongly recommend you go online again before mm/dd/yyyy.” Facing this error is quite frustrating as users are unable to perform their basic payroll functions. Go through this post if you are looking for the top solutions to fix the QuickBooks payroll update error ps038.

Prominent Reasons for Getting QuickBooks PS038 Error

The root cause of this error is that the stuck paycheck is marked as “online to send”. However, apart from this, there are other reasons also, which are as follows:

QuickBooks has not verified the digital signature.
The payroll items in QuickBooks cause some discrepancies.
You are working on the older version of QuickBooks, which does not support the payroll functions.
QuickBooks file copy services (FCS) are not working properly.
Windows firewall or antivirus is blocking the QuickBooks payroll updates.

Quick Methods to Fix QuickBooks payroll update error ps038

After knowing the root causes of the payroll update error, resolving the issue becomes much easier. There are a few expert solutions to this error. Let us have a quick look at each solution one by one.

Solution 1: Correct the Stuck Paychecks Information

Foremost, identify the stuck paychecks by clicking on the Edit option and then choosing the Find option.
Thereafter, click on the Advanced tab and click on the Filter option.
Pick the detail level and summary option to find all the stuck paychecks.
After finding the stuck paychecks, click on the paychecks detail button and move to the Earnings tab in the opened window.
Look for the last item in the list and re-add that last item as a new item.
A Net pay lock window will pop up on your screen, where you need to click on the NO option.
Further, choose the Rate Field for the newly added item.
Make sure that there is no change in the Net pay or taxes, and press the OK button.
Press the Yes button if the past transaction warning message appears.
Press the Save and Close button.
Again, click on the Paycheck details and delete the new item.
Ensure that NO Changes occur to Net pay or taxes.
At the end, you need to click on the Save button to implement the changes made.

Solution 2: Install the Latest QuickBooks Desktop Updates

Open the QuickBooks software in your system and press the Help Menu button.
After that, choose the Update QuickBooks desktop option from the drop-down menu.
Further, choose the Update Now tab and select the updates that you wish to install.
After selecting the updates, press the Get Updates option. It will download the latest updates to your system.
Now, re-open QuickBooks and click the Install Now button on your screen.

Solution 3: Send the Payroll After Updating the QuickBooks

Log in to your QuickBooks and click on the Employee Menu button.
In the Employee drop-down, choose My Payroll Services option and further click on the Send Usage data option.
Try to send the data. If the data is sent successfully, try running payroll again.

Conclusion

This is the end of this blog. Hopefully, this blog helps you resolve the QuickBooks payroll update error PS038. If you fail to resolve the issue or need personalised assistance, you can reach out to the experts at Qbookshub.