Fix QuickBooks Payroll Error PS038 Fast: Payroll Update Won’t Run!

QuickBooks Payroll Error PS038 prevents payroll updates and processing, causing delays and frustration. This error often occurs when paychecks get stuck “Online to Send.” Fixing it quickly ensures your payroll runs smoothly without interruptions or compliance risks.

Jul 11, 2025 - 23:34
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Fix QuickBooks Payroll Error PS038 Fast: Payroll Update Won’t Run!
How do I fix QuickBooks Error PS038

QuickBooks Payroll Error PS038 is a common issue encountered by users when trying to update payroll or send paychecks online. The error usually occurs when there is a pending paycheck stuck in the "Online to Send" state.

When this issue arises, users are typically unable to update their payroll or process direct deposit payments. This error disrupts payroll processing and can affect a business's ability to pay employees on time.

Error Message: QuickBooks is unable to send your data due to Error PS038.”

While this issue can be frustrating, it can be resolved by following specific troubleshooting steps.

Reasons for QuickBooks Error PS038

  1. Pending Paycheck Stuck in Online to Send: The most common reason behind this error is a paycheck that hasn’t been transmitted properly due to internet connectivity or file corruption. It stays in the system marked as “Online to Send.”

  2. Outdated Payroll Service: Running an outdated version of QuickBooks Payroll or QuickBooks Desktop can cause Error PS038. Regular updates are essential to maintaining payroll functionalities.

  3. Corrupted QuickBooks File: Data integrity issues in the company file or payroll data can lead to various issues, including Error PS038.

  4. Issues with Direct Deposit Paychecks: If the direct deposit paycheck doesn’t clear or sync correctly with QuickBooks servers, this error can arise.

  5. Incorrect Payroll Subscription Status: Sometimes, the payroll subscription may not be properly synced, causing it to disrupt payroll processing.

  6. Malware or Virus Infection: Virus or malware infection could potentially damage important QuickBooks files, leading to Payroll Error PS038.

Solutions to Fix QuickBooks Payroll Error PS038: Paychecks Online to Send

Solution 1: Verify and Rebuild Data

Verifying and rebuilding the QuickBooks company data file helps fix issues related to data corruption.

  • Step 1: Open your QuickBooks Desktop.

  • Step 2: Navigate to the “File” menu and select “Utilities.”

  • Step 3: Click “Verify Data” to identify any issues in the company file.

  • Step 4: If QuickBooks finds any issues, go to the “File” menu again, select “Utilities,” and then click “Rebuild Data.”

  • Step 5: Follow the prompts to rebuild the data and resolve the pending payroll issue.

Solution 2: Send Payroll Data

Sometimes, simply attempting to resend the payroll data can clear the error.

  • Step 1: Go to the “Employees” menu.

  • Step 2: Select “Send Payroll Data” from the dropdown.

  • Step 3: Click “Send” to attempt to send the pending payroll data.

  • Step 4: If the transmission is successful, the error should be cleared.

Solution 3: Update QuickBooks Desktop and Payroll Service

Ensuring that you have the latest updates can prevent the recurrence of PS038.

  • Step 1: Go to the “Help” menu in QuickBooks Desktop.

  • Step 2: Click “Update QuickBooks Desktop” and follow the prompts to install the latest updates.

  • Step 3: Once updated, restart QuickBooks.

  • Step 4: Also ensure that your payroll service is up to date by clicking on “Employees,” selecting “Get Payroll Updates,” and following the on-screen instructions to install any new updates.

Solution 4: Check and Void Pending Paychecks

If there are any pending paychecks in the “Online to Send” status, you will need to locate and void them.

  • Step 1: Press “Ctrl + F” to open the Find window in QuickBooks.

  • Step 2: Click on the “Advanced” tab and search for the paychecks that are marked as “Online to Send.”

  • Step 3: Open each paycheck and review the details.

  • Step 4: If the paycheck is stuck, void it by clicking “Edit” and selecting “Void Paycheck.”

  • Step 5: After voiding, run a new payroll to resend the paycheck.

Solution 5: Run Payroll Update in Safe Mode

Running a payroll update in Safe Mode ensures no interference from other applications.

  • Step 1: Close QuickBooks Desktop.

  • Step 2: Restart your computer in Safe Mode (Press F8 while booting).

  • Step 3: Open QuickBooks and go to the “Employees” menu.

  • Step 4: Click on “Get Payroll Updates” and follow the prompts to complete the update.

Solution 6: Contact QuickBooks Support

If none of the above steps work, contacting QuickBooks support is recommended. They can provide more advanced troubleshooting based on the specific error message and system details.

Frequently Asked Questions About Fixing QuickBooks Payroll Error PS038

What is QuickBooks Payroll Error PS038?

  • QuickBooks Payroll Error PS038 occurs when paychecks remain stuck in an “Online to Send” status, preventing payroll updates and causing payroll processing issues.

Why does QuickBooks Payroll Error PS038 happen?

  • This error often happens due to corrupted payroll files, outdated QuickBooks software, poor internet connectivity, or communication problems with Intuit’s payroll servers.

How can I identify if I have Error PS038?

  • You might see a message indicating payroll update failure or notice paychecks are stuck in “Online to Send” status, and payroll updates fail repeatedly.

Can I fix QuickBooks Payroll Error PS038 myself?

  • Yes, many users can resolve the issue by running the Verify and Rebuild Data tool, updating QuickBooks Desktop to the latest version, or clearing stuck paychecks manually.

What is the Verify and Rebuild Data tool

  • It’s a built-in QuickBooks utility that scans your company file for data corruption and attempts to repair damaged files causing payroll and other errors.

How do I clear stuck paychecks in QuickBooks?

  • Clearing stuck paychecks usually involves sending them manually or deleting and recreating problematic payroll entries to restore smooth payroll processing.

Is internet connectivity a cause for PS038?

  • Yes, unstable or slow internet connections can disrupt communication with Intuit’s servers, resulting in update failures like PS038.

Does updating QuickBooks Desktop help resolve PS038?

  • Keeping QuickBooks Desktop updated ensures compatibility with Intuit’s payroll servers and often fixes known bugs, including payroll errors like PS038.

Can antivirus or firewall settings cause Error PS038?

  • Overprotective antivirus or firewall configurations can block QuickBooks from accessing payroll servers, which may lead to update errors.

Should I run QuickBooks as administrator to fix PS038?

  • Running QuickBooks with administrator privileges can help avoid permission-related issues during payroll updates and improve communication with online servers.

What if the Verify and Rebuild Data tool doesn’t fix the error?

  • If built-in tools fail, users should contact QuickBooks Payroll support or consult a qualified technician for advanced troubleshooting.

Can the QuickBooks Tool Hub help fix payroll errors like PS038?

  • Yes, QuickBooks Tool Hub offers utilities to fix common payroll and program issues, including tools to repair data files and network connectivity.

Is it safe to delete and recreate paychecks to fix this error?

  • Deleting and recreating paychecks should be done cautiously and only after backing up your data, as incorrect steps can lead to data loss.

What are the risks of ignoring Payroll Error PS038?

  • Ignoring this error can delay payroll processing, cause tax filing issues, and potentially lead to penalties or employee dissatisfaction.

When should I contact QuickBooks support for Error PS038?

  • If troubleshooting steps do not resolve the error promptly, contacting QuickBooks Payroll support at +1(855)-738–0359 is recommended for expert assistance.

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