QuickBooks Payroll Update Error PS038: Troubleshooting Guide

5 min readJul 11, 2024

When managing payroll through QuickBooks, encountering errors can disrupt your workflow and cause frustration. One such issue that users may encounter is QuickBooks Payroll Update Error PS038. This error typically occurs when attempting to update payroll within QuickBooks, and understanding its causes and solutions can help resolve it efficiently.

QuickBooks Payroll Update Error PS038 usually indicates a problem related to downloading or installing payroll updates. This error can arise due to several reasons, including:

Internet Connectivity Issues: Poor or unstable internet connection can hinder QuickBooks from downloading updates properly.
Corrupted QuickBooks Files: Sometimes, files related to payroll updates within QuickBooks can become corrupted, leading to errors like PS038.
Issues with Payroll Subscription: Problems with your QuickBooks payroll subscription or account settings may prevent updates from being processed correctly.

Steps to Resolve QuickBooks Payroll Update Error PS038

Resolving QuickBooks Payroll Update Error PS038 involves several troubleshooting steps that can help diagnose and fix the issue effectively. Here’s a comprehensive guide to resolving this error:

1. Verify Internet Connectivity

The first step is to ensure that your internet connection is stable and working correctly. QuickBooks requires a reliable internet connection to download and install updates seamlessly. Check your internet settings and try accessing other websites or services to confirm connectivity.

2. Update QuickBooks Software

Ensure that your QuickBooks software is up to date with the latest updates and patches. Outdated versions of QuickBooks may encounter compatibility issues with payroll updates, leading to errors like PS038. Follow these steps to update QuickBooks:

Open QuickBooks: Launch QuickBooks and log in with your credentials.
Check for Updates: Navigate to the Help menu and select “Update QuickBooks.”
Download Updates: Follow the on-screen instructions to download and install any available updates.

3. Check Payroll Subscription

Verify your QuickBooks payroll subscription status to ensure it is active and up to date. A lapsed or inactive subscription can prevent payroll updates from being processed correctly. Here’s how to check your subscription status:

Log in to QuickBooks: Open QuickBooks and log in using your admin credentials.
Go to Payroll Settings: Navigate to the Employees menu and select “My Payroll Service” > “Account/Billing Information.”
Verify Subscription: Check the status of your payroll subscription and renew if necessary.

4. Reset QuickBooks Updates

Sometimes, resetting QuickBooks updates can resolve issues related to failed updates or error PS038. Follow these steps to reset QuickBooks updates:

Close QuickBooks: Exit QuickBooks and ensure no QuickBooks processes are running in the background.
Rename Update Folder: Navigate to the QuickBooks installation directory (usually located in C:\Program Files\Intuit\QuickBooks) and locate the “Update” folder. Rename this folder to something like “Update.old”.
Restart QuickBooks: Open QuickBooks again, and it will recreate the Update folder automatically.

5. Run QuickBooks Repair Tool

QuickBooks comes with a built-in repair tool that can fix common issues with the software, including errors like PS038. Here’s how to use the QuickBooks repair tool:

Close QuickBooks: Exit QuickBooks and any related processes.
Run QuickBooks Repair: Open the Control Panel on your computer, go to Programs > Programs and Features.
Select QuickBooks: Locate QuickBooks in the list of installed programs, right-click, and select “Repair.” Follow the on-screen instructions to complete the repair process.

6. Verify Payroll Service Key

Ensure that your payroll service key is entered correctly in QuickBooks. A mismatch or incorrect service key can prevent payroll updates from being processed. Here’s how to verify your payroll service key:

Open QuickBooks: Launch QuickBooks and log in using your admin credentials.
Navigate to Payroll Settings: Go to the Employees menu and select “My Payroll Service” > “Manage Service Key.”
Verify Service Key: Check the service key listed and compare it with the one provided by Intuit. Update if necessary.

7. Contact QuickBooks Support

If you’ve tried all the above steps and continue to encounter QuickBooks Payroll Update Error PS038, it may be time to seek assistance from QuickBooks support. Intuit’s support team can provide specialized help and further troubleshooting steps tailored to your specific issue.

Conclusion

Encountering QuickBooks Payroll Update Error PS038 can be frustrating, but with the right troubleshooting steps, you can resolve the issue and get back to managing payroll efficiently. By ensuring your internet connection is stable, keeping QuickBooks updated, and verifying your payroll subscription and service key, you can effectively troubleshoot and fix error PS038. For more complex issues, don’t hesitate to contact QuickBooks support for personalized assistance and guidance.