What is QuickBooks 2023 Error PS038? A Complete Guide

QuickBooks Desktop Payroll is a nearly impeccable business accounting suite for Small and medium-sized businesses, But What if it prevents you from using its vital services? The subsequent article’s subject is Why QuickBooks Payroll Error Ps038 occurs and how to nail or prevent it from happening.

What does mean QuickBooks Payroll Error PS038?

Error message PS038: “You have downloaded the latest payroll update patch and verified your payroll subscription. We firmly suggest you go online again before XX/XX/XX” when you’re using QuickBooks Payroll Service to send paychecks, payroll data, update payroll tax tables, etc.

QuickBooks Payroll Update Error

Reasons why QuickBooks error code PS038 occurs?

Here are some of the most common causes that can cause QuickBooks Can’t use payroll Error PS038.

  • A Damaged Company File(.QBW) is likely to cause QB Payroll Error PS038.
  • A stuck Paycheck can also prevent users to perform any payroll services-related task.
  • Inactive QB payroll subscription.
  • Damaged QuickBooks Components.
  • “Pending Payroll updates, which is prior to the use of payroll services.
  • Maybe the Firewall program is stopping QuickBooks payroll to use the network.
  • Antivirus programs or other programs are clashing with QuickBooks desktop.

Simple Steps to fix Unable to use payroll Error PS038 in QuickBooks 2023

First Step: Check if your payroll subscription is active or not

  • Close all the actively running company files and then restart your computer.
  • Now open up QuickBooks and move to Employees, then choose My Payroll Service and then select Manage Service Key from the panel.
  • Check your Service Name and Status, the service name should be correct and the status should be displayed as active.
  • Choose the edit and verify service key number. If it is incorrect then put the correct service key.
  • Choose next and uncheck the Open Payroll Setup box, then click on finish.
  • It will also download the payroll update, if you have not yet done it, start with the second step if you again see the error message.

Second Step: Check if QBDT is registered or not and then update it

  • From the keyboard hit the F2 button to open up product information.
  • Find the product information beside the license number and check if it is activated or not.
  • If it is not then register your QBDT.
  • Proceed with the below section to update the QuickBooks and next download the latest payroll tax table update.

Users run the risk of getting themselves stuck in a situation in which the program ceases to respond while they are attempting to update the payroll feature. When you haven’t been keeping your accounting software up to date with the most recent version, this is typically the result. As a consequence of this, it eventually becomes obsolete, which causes the PS038 error to appear in QuickBooks Desktop. Regular updates should be installed, but they are especially important when your data or files are used often.

  • Navigate to “QBDT“.
  • Click the “Help” button when you are ready.
  • Now, select the “Update QuickBooks Desktop” menu item by clicking on it.
Update QuickBooks Desktop
  • Click the “Update Now” button.
  • The “Get Updates” tab is the one that should be selected at this point.
  • Please be patient while the update completes.

When you are finished, exit the program, and then restart your computer so that the PS038 problem is totally removed. In addition, reactivate the accounting software, and proceed to the next step. Now, check to see if all of the functions have been operating without any problems.

Third Step: Sending Payroll Data After Updating the Software

While uploading their payroll data online using the software, users could find that their paychecks have become stuck or otherwise malfunctioned. As a result, the accounting software may experience the PS038 issue and activities may be hampered. In order to fix Error PS038, you can transmit the payroll data again using the Send Usage button.

Note: Make sure your program is updated to the most recent version before starting to fix the PS038 error code. You should back up all of your important business files to prevent data loss.

  • Click the “Employees” button.
  • After that, select “My Payroll Service.
  • After that, select “Send Usage Data.”

If you can’t find this tab, keep going by following the steps below:

  • Move to “Employees” now.
  • Click this and select “Send Payroll Data.
Send Payroll Data
  • Select “Send All” from the “Send/Receive Payroll Data” window.
  • You must now enter the “Payroll Service Pin” when prompted.

The QuickBooks error PS038 may already have been resolved if the aforementioned remedy was correctly carried out. Your paychecks would have been delivered as well. After that, try updating the payroll data feature.

Fourth Step: Run Quick Fix my Program from the QB Tool Hub

  • Close all the running company files and also close QBDT.
  • Now download and install QuickBooks Tool Hub if you do not have it already. To proceed with this step faster you can read our related guide on How to download the QuickBooks Tool hub.
  • Follow the steps displayed on your computer screen to install, and agree to the terms and conditions.
  • Once you have completed installing the tool hub, open the application and select program problems.
Quick Fix My Program
  • Now choose Quick Fix My Program, it will take some time to finish the diagnosis, once this process is finished start QBDT and open your company file.
  • Check if you are still getting the payroll error PS038 or not.

Fifth Step: Use a Backup of Payroll Data and Company File

Note: It is recommended to make an additional manual copy of the payroll. As these kinds of issues are likely to occur when you are using accounting software to complete your work or day-to-day tasks.

The QuickBooks error code PS038 may prevent access to the company file or payroll information. Either of these could cause QB users problems. You must obtain a backup of the data and file because they are both necessary for your accounting software to operate properly. You can then use the backup for your work after that. Consequently, the PS038 error might not appear then.

  • Proceed to “QuickBooks” when you’re ready.
  • Navigate your way to the “File” tab.
  • Choose the “Back Up Company” option from the drop-down menu.
  • Following this, select the “Create Local Backup” option from the menu.
Create local backup
  • When the page labeled “Create Backup” opens, navigate to the “Local Backup” option.
  • Click the “Options” tab before continuing with the process of fixing the QuickBooks error PS038.
  • After taking these steps, the window labeled “Backup Options” will appear.
  • In this phase, select “Browse” from the menu.
  • You will need to decide where the backup copy will be kept once you have made that determination.

Please take note that the backup cannot be stored on the primary local drive. Choose a service that hosts your files, a flash drive, or any other type of removable media.

  • Tap the “Ok” button once you have chosen the location.

The QuickBooks error PS038 should now be gone from your software after you’ve completed this step. You are free to return to it and begin working on it at this time. In the event that the problem continues to occur, go back through the steps and figure out where you went wrong. Once the error has been identified, make the necessary adjustments.

Sixth Step: Checking and Rebuilding Company Files on QuickBooks Desktop Payroll

It’s possible that your accounting software can crash if you try to update the payroll feature. Whenever the program experiences the PS038 error code, this problem may manifest itself. In addition, the code may remain in your system even after it has been executed on your file data. It may be possible for you to easily fix the PS038 message in QuickBooks Desktop Payroll by first checking the company file and then recreating it. The utility tab has the potential to act as an essential button throughout the execution of both operations.

  • Proceed to the software known as “QuickBooks Desktop.
  • Click the “File” tab when you are ready to continue.
  • To access these, click the “Utilities” tab.
  • After that, select the “Verify Data” option from the menu.
verify data
  • Simply hitting the “Ok” button will close all of the currently active windows.
  • If the accounting program does not identify any problems, you can pick “Ok” from the menu.
  • After you have ensured that the company file is accurate, you will need to recreate it.

Continue to follow these steps in order to reconstruct QuickBooks QBWfile data using the rebuild utility:

Before commencing the process of rebuilding, it is essential to make a copy of the company file used by QuickBooks and save it somewhere safe. In the event that you do not create a backup, there is a possibility that your data will be corrupted.

  • Choose “File” from the menu.
  • In this stage of the process, click the button labeled “Utilities.”
  • After that, navigate to the option labeled “Rebuild Data.”
rebuild data
  • After that, select the “Ok” option from the menu.
  • Choose “Ok” to proceed with the creation of a backup copy.
  • Click the “View Results“.
  • After reviewing it, you will be required to perform an additional update of the payroll feature.

Read More:- Stepwise Fix QuickBooks Desktop won’t update issue

What to do if you get QuickBooks Message code PS038 after rebuild

  • To start with open the first paycheck you may see on the list. Then, choose the paycheck detail option.
  • Go to the earnings section of the review paycheck window, and add the same earnings item as you have added in the past.
  • It will now show you the Net Pay Locked message on the system. Click on No and close the window.
  • Next, choose the Rate Field that you have added to the new earnings item.
  • Check the taxes and net pay and make sure that there is no change in them. Click on Ok to save all the changes.
  • Select Yes, when you see the Past Transaction message.
  • Click on Save and Close to shut the paycheck.
  • Choose yes, when you can see the Recording Transaction warning and once again open the paycheck.
  • Next, select the paycheck details icon and delete all the earnings that you have previously added in the earnings section.
  • Make sure that no changes are made in the taxes and net pay. Tap on OK -> Save -> Close to close the paycheck.
  • At the end repeat all the steps for the paychecks that have status online to send. Once you have finished, try to send the usage data once again.
  • Additionally, you can download the latest version of the tax table.

We hope the above techniques were sufficient to rid of QuickBooks Payroll Update Error PS038. However, If anyone is still not able to use the payroll service or has some doubts regarding QuickBooks, In such circumstances, I would strongly recommend contacting QuickBooks Data Services experts at the Toll-Free Helpline number +1-(888)-704-1357.

FAQ’s on QuickBooks Payroll Error message PS038
Is updating QuickBooks payroll tax tables mandatory?

Yes, It is highly important to update your payroll tax tables monthly basis, and If you are using QBO so you don’t need to do it manually. But in QuickBooks Desktop you have to do an update manually or set an automatic update turned on.

How to prevent Error PS038 in QuickBooks Desktop?

1st Step: Update your QuickBooks and Payroll on time.
2nd Step: Whenever you finished your work, make sure to close the QuickBooks Company File appropriately.