QuickBooks Payroll Error PS038, as the name itself express, may occurrence during the installation of the latest payroll updates. This error is often traced if you are using an invalid or outdated QuickBooks payroll subscription. However, when the error strikes, it presents you with a warning message that says, “You’ve retrieved the latest payroll update and validated your payroll subscription.” Unfortunately, the appearance of the QuickBooks Error PS038 creates trouble while running payroll or downloading the latest tax table. In this detailed post, we have explained all the factors promoting Error PS038 QuickBooks and solutions to fix them.

Why Does a User Experience QuickBooks Error Code PS038?

Before finding the solution to QuickBooks Error Code PS038, it’s essential to figure out the causes behind the issue. So, let’s study them in detail.

  • QuickBooks Error PS038 often appears when users get stuck while sending paychecks, and it displays “Online to Send.”
  • Certain problems with the QuickBooks company file data might trigger this issue.
  • Network connectivity issues are also one of the major causes of payroll update errors.
  • Windows Firewall or third-party apps are creating problems when downloading the latest QuickBooks payroll updates.
  • In other cases, this issue might arise when the payroll subscription you are accessing is either invalid or outdated.

Proven Tips to Rectify QuickBooks Error PS038 Without Any Effort

After determining the causes of QuickBooks Error PS038, let’s examine the corrective measures listed below.


Solution 1: Sending Of the Payroll Data or Usage Data

Before sending of the payroll data or usage data it is essential to take the backup and update the QBDT to the latest version.


  • The first thing you need to do is move to the Employee menu and tap on the My Payroll Service > Send Usage Data option. If you notice that this option isn’t visible on the screen, move further.
  • Now, select the Employees tab and then hit the Send Payroll Data option.
  • Next, head to the Send All tab from the window that says Send/Receive Payroll Data. At this time, if you are prompted, then provide the payroll service pin into the given text field.
  • Following this, if you observe that the send is successful, start downloading the latest payroll updates. If the error is still bothering you, continue with the next steps.
  • Whereas, if you see that the send is unsuccessful, try another solution given below.

Solution 2: Discover the Paychecks That Are Stuck


  • The first and foremost step is to choose the Edit menu and then opt for the Advanced menu.

  • Moving onwards, once again you have to tap on Advanced option and switch to the Choose Filter Section. Then, click the Detail Level tab from the Filter List to proceed further.
  • Now, you must hit the Summary Only tab and then navigate to the Filter list. Then, use your cursor to pick the Online Status option, followed by Online to Send.
  • When all the changes are done, hit the Find option. This action will display all the paychecks that haven’t been sent to Intuit on the screen. You must write down the “Number of Matches” provided on the Find window in a safe place.

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Solution 3: Take Advantage of the Verify & Rebuild Data Utility

You must study the step-by-step instructions outlined below to run the verify and rebuild data tool to repair the damaged data.

  • Instructions to Verify Your Data File
  • Primarily, hit the Windows logo key and the Close tab before moving further.
  • Soon after this, head to the File menu > Utilities tab and then proceed further.
  • Now, click the Verify Data option and check if any of these error messages appear on the screen.
  • QuickBooks detected no problems with your data- Herein, this message indicates that there is no certain discrepancies with the data file and it won’t require any repairing.
      • An error message—If the error message pops up on the screen, start searching for the solution by accessing the QuickBooks Desktop support site.
      • Your data has lost its integrity. When this message appears, it states that the data file is damaged.
  • Instructions to Rebuild Your Company File Data
  • Primarily, head to the QuickBooks File menu and tap on the Utilities option. Then, you must select the option that says Rebuild Data.
  • After that, if QuickBooks asks you to generate a backup of your data, click the OK tab for confirmation. It will then automatically start creating the backup file.
  • Thereon, you must choose the location to save the data file and then tap on the OK button. Then, verify that they won’t replace that or any other backup file. However, to prevent further discrepancies, provide the new name to your file and save it.
  • Now, tap on the OK option, which will eventually throw the message that says Rebuild is done appropriately.
  • Moving onwards, head to the File option > Utilities > Verify Data to test that there is no further damage within the file.

If the verification finds severe damage in your file, it is advisable to repair it manually. However, you must search for the errors present in the qbwin.log file from the QuickBooks Desktop support website.

If you won’t be able to rectify the issue, you can recover it through the latest backup. Then, proceed to the File menu and opt for the Open or Restore Company Option.

Wrapping It Up!!

We completely understand how frustrating it is to resolve the QuickBooks Payroll Error PS038, but by using the above solutions, you can deal with them quickly. Thus, it will also let you get the most current version of the QuickBooks Payroll update available. If you are still having any trouble fixing the error, then it’s time to connect with our QB professionals right away for best assistance.

Read More: QuickBooks Tool Hub: Your One-Stop Troubleshooting Solution