QuickBooks Error PS038 – Paychecks Stuck as Online to Send

QuickBooks error PS038 prevents the users from downloading the payroll updates or carrying out the payroll operations.

When the users attempt to do the same, they get an error message that usually looks like this:

“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]”

This usually happens because of reasons like outdated QuickBooks Desktop, payroll stuck as online to send, etc. In this article, we will explore various reasons why you see payroll update error PS038 in QuickBooks Desktop and learn how to resolve them.

Understanding Why Payroll Error PS038 Occurs

Let us explore multiple reasons that can lead to payroll update errors, such as PS038 in QuickBooks Desktop.

1. Stuck Paychecks

Sometimes, paychecks in QuickBooks get stuck as Online to Send. This is one of the major reasons why you get a payroll update error PS038.

2. Outdated QuickBooks

If your QuickBooks is outdated or hasn’t been updated for long, you can face several errors and issues. This is why you must keep the software up to date.

3. Damaged Company File

PS038 is likely to arise if your company file has issues. Therefore, check its integrity.

4. Incorrect Internet or Firewall Settings

Payroll update requires an internet connection and can end up with QuickBooks error PS038 if the internet is interrupted. However, check the internet and firewall settings to ensure you can download payroll updates smoothly.

5. Inactive Payroll Subscription

You can only update the tax table with an active payroll subscription. However, if your payroll subscription has expired, you might encounter errors such as QuickBooks payroll error 30001 or PS038.

6. Outdated or Corrupt Tax Table Version

If you haven’t updated the QuickBooks tax table, you might find that QB taxes are not deducted correctly or that errors with code PSXXX occur. Therefore, it is a must to update QB payroll in a timely manner.

However, you might run into a PS038, sometimes when updating the payroll tax table as well. This might happen due to a corrupt tax table.

Here’s How to Troubleshoot QuickBooks Error PS038

In this section, we will learn how to fix the QuickBooks error PS038 while sending paychecks or updating payroll.

Follow the instructions given below in the order they are written. If you run into an issue or have a query, you can call us anytime.

1. Backup Company File

Let us begin by creating a backup of your company file. This will prevent you from losing company data when troubleshooting QuickBooks payroll update is not working.

Once you have created the backup, proceed to the next step to fix QuickBooks error PS038.

2. Update QuickBooks Desktop and Payroll

It is important to update your QuickBooks Desktop to the most recent release. This is to install the latest components, bug fixes, and software enhancements on your computer. 

When you do so, make sure to check the box for reset updates.

Moreover, a corrupt or outdated tax table version can give way to error. Therefore, try to update QuickBooks payroll if you haven’t done so.

However, if you get an error when updating the payroll tax table, you can move to next solution.

3. Check Your Payroll Subscription

We need to make sure that your payroll subscription is active to avoid error PS038 and QuickBooks error 05396 40000 during payroll setup.

Here is how you can find the payroll subscription.

• Log in to the QB company file as Primary Admin or Payroll Admin. 
• Go to Employees, followed by Payroll Center. 
• Now, you will be able to see payroll service under Subscription Statuses in the Payroll tab.

If the payroll service has expired, you will need to reactivate it to avoid QuickBooks error PS038.

4. Re-Enter Service Key

If your payroll service key hasn’t expired, and yet it shows inactive, you can re-enter the payroll service key. This will prompt QuickBooks to re-initiate the connection and reactivate the payroll subscription.

• Tap on Employees and choose My Payroll Service.
• Select Manage Service Key.
• Locate the payroll service key and choose it.
• Tap on Remove and choose Add.
• Type in the active payroll service key.
• Now, click on Finish and OK.

Now, start QuickBooks Desktop and run the payroll operations again. If you see the error PS038, continue to the next step.

5. Send Payroll Data or Usage Data

Follow the instructions given below to send payroll or usage data. 

• Tap on Employees and choose My Payroll Service. 
• Now tap on Send Usage Data. However, if you can’t find this option, open the Employees menu and choose Send Payroll Data.
• Now, when the Send/Receive Payroll Data window opens, choose Send All.
• If asked to, provide the payroll service.

If you were able to send the payroll or usage data, try downloading payroll updates again. If you still encounter the same payroll error message, proceed to the next step.

However, if you were unable to send payroll or usage data because of error message PS038, move on to the next solution.

6. Find Stuck Paychecks

Payroll errors like PS038 can be due to stuck paychecks in QuickBooks Desktop. Let us check if there are any stuck paychecks.

• Tap on Edit and choose Find.
• Click on the Advanced tab.
• Now, go to the Choose Filter section. 
• Tap on the Filter list and choose Detail Level. 
• Click on Summary Only.
• Tap on the Filter list and scroll down to the Online Status.
• Choose Online to Send, followed by Find.
• Check which paychecks are stuck and haven’t been sent to Intuit.

Note down the number of matches there are in total.

7. Verify and Rebuild Company Data

Verify and Rebuild utility allows you to search for the issues in the company file and fix them.

You do this in three steps.

a). Verify Company Data

First, we will verify company data to search for issues.

• Open QuickBooks Desktop.
• Tap on Window and choose Close All.
• Click on the File menu and choose Utilities.
• Choose to Verify Data. 

There are two scenarios you can see. If QuickBooks detects no problems with your company file, the data is clean, and you can proceed to the next solution right away—you don’t have to rebuild the data.

However, if QuickBooks detects issues with your company file or says, “Your data has lost integrity”, you will need to rebuild the data. 

b). Rebuild Company Data

Now, let us proceed to rebuilding the company file to resolve the issues found earlier.

• Click on the File menu and choose Utilities.
• Choose to Verify Data. 
• You will need to create a backup before rebuilding the company file.
• Tap on OK when QuickBooks asks you to create a backup.
• Choose where you will be saving the backup and tap on OK.

Note: When saving the backup company file, do not replace an existing backup file. To do so, you can either save the backup company with a different name or in a different folder than where the existing backup is present.

• Choose Save.
• Finally, you will see the message stating the rebuild has been completed.
• Tap on OK. 

c). Verify Data Again

Finally, we will need to verify the company data again to find additional damages that may be remaining.

• Click on the File menu and choose Utilities.
• Choose to Verify Data. 
• If you find more damage, go ahead and fix them manually. You can do so by searching the error message you see on the screen on the internet and following the instructions to resolve them. Alternatively, you can connect to a QuickBooks advisor.
• Moreover, you can open QuickBooks Tool Hub and go to the Program Problems tab. Select the QBWIN.log folder button to open the folder and note down the issues you see. Then, fix them using the instructions available for the error or issue on the internet.
• If you can’t resolve the error, you can restore a company backup instead. To do so, open the File menu and choose Open or Restore Company.

Note: When restoring a backup, make sure not to replace the existing company file. 

Now, open QuickBooks Desktop company and continue the payroll operations. Check if you get QuickBooks Payroll Error 30159 or PS032 when trying to update an existing payroll subscription or while downloading the updates.

8. Toggle All the Stuck Paychecks

Stuck paychecks might be preventing you from updating your payroll.

Earlier in a step, when we verified the company data, we found stuck paychecks. We will toggle these stuck paychecks to resolve the payroll update error.

• Open the oldest of the stuck paychecks you found earlier.
• Tap on Paycheck Detail.
• Go to the Review Paycheck window.
• In the Earnings section, find the last earnings item in the list. Add the same earnings item again. 

For instance, if you find that the last item in the list is Hourly Rate, add an earnings item named Hourly Rate again to the list.

• When you see the Net Pay Locked message, choose No.
• Check and verify that there are no changes to the tax amounts and net pay. Tap on OK.
• Click on Yes if a Past Transaction message appears.
• Now, tap on Save & Close. This will close the paycheck.
• If you see a Recording Transaction warning message, choose Yes.
• Now, open the same paycheck again and click on Paycheck Details.
• Go ahead and delete the earnings item you recently added.
• Check and verify that there are no changes to the tax amounts and net pay. Tap on OK.

Do the same for all the stuck paychecks present in your company file. Once you are done, re-attempt to download the payroll update.

9. Check Internet Connection

You shouldn’t download payroll updates with an unstable or slow network connection; it will only run into errors. Therefore, check your internet connection before you run the payroll updates.

Moreover, also check the antivirus and windows firewall settings if you get error code PS038.

If Nothing Works, Connect to an Expert

This was all on how to resolve QuickBooks error PS038. Carry out the troubleshooting methods given in this guide carefully, and if you have a query, you can reach out to us.

However, if the payroll error PS038 persists, even after carrying out these solutions, you should get assistance from a QB ProAdvisor. Dial 1(800) 780-3064 and connect to them now!

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Gabby Taylor

Gabby Taylor, combines financial expertise with literary prowess. With over a decade in finance, she crafts insightful narratives on navigating fiscal complexities