How to Fix QuickBooks Payroll Error PS038: Step-by-Step Guide for 2025

Finance & Investment

Jul 28, 2025

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QuickBooks is a leading accounting software used by businesses worldwide for handling finances and payroll. However, even robust software like QuickBooks isn't immune to technical glitches. One such issue that users frequently encounter is Payroll Error PS038. If you’ve encountered this error while updating payroll or sending paychecks, this guide will help you understand its causes, symptoms, and, most importantly, how to resolve it.

What is QuickBooks Payroll Error PS038?

QuickBooks Payroll Error PS038 typically occurs when users try to update payroll or send paychecks, but are blocked by a message that reads:

“You have retrieved the latest payroll update and validated your payroll subscription. We strongly recommend that you go online again before mm/dd/yyyy (a specific date). [PS038]”

This error usually means that there are paychecks stuck as "Online to Send," preventing QuickBooks from syncing or processing payroll updates properly.

Common Causes of Error PS038

Several factors can lead to this error in QuickBooks, including:

One or more paychecks are stuck in the "Online to Send" status.
Incomplete or corrupted payroll updates.
Damaged company files.
A disruption occurred during the payroll data transmission.
Internet connectivity issues or a firewall blocking QuickBooks services.

Symptoms of Payroll Error PS038

You might be dealing with Error PS038 if you notice:

You can’t send paychecks or update payroll.
The error message repeatedly appears even after updates.
Performance lag or freezing when accessing payroll features.
Inability to verify or sync payroll data with Intuit servers.