QuickBooks Error PS038: Here are the Top 4 Steps to Fix It

QuickBooks Error PS038 Sometimes you may face issues while downloading QB payroll updates. One common problem users encounter is QuickBooks error PS038. This error can also appear when you try to send paychecks online. When this occurs, you will usually see an error message displayed on your screen: “You’ve retrieved the latest payroll update and validated your Payroll subscription. We strongly recommend that you go online again before mm/dd/yyyy. [PS038].” Below are some basic effects you may notice on your device when this error occurs:

  • Your Windows system may slow down significantly, and in some cases, the operating system might freeze
  • You may encounter issues when performing payroll-related tasks
    Recommended to Read: How to Resolve QuickBooks Error 2277

Why Do You Encounter Payroll Error PS038 in QuickBooks?

Here are the possible reasons why QuickBooks error PS038 occurs on your desktop:

  • Using an outdated method to download QuickBooks Payroll updates can trigger this error
  • The error may appear when paychecks remain stuck in the Online to Send status while you’re trying to send them online
  • Damaged or corrupted company files can also cause Error Code PS038
  • An inactive payroll subscription may lead to the PS038 error message
  • If the linked bank account is inactive, this error can occur in QuickBooks
  • Failing to install the latest payroll updates can also result in this error code

Step-by-Step Guide to Resolve the QuickBooks Error PS038

After understanding the reasons behind the occurrence, now it’s time for you to learn the steps to rectify the error code PS038 in QBDT:

Step I: Send the QuickBooks payroll/usage data

  • First, access the QuickBooks > move to the Employees tab > then choose My Payroll Service > tap Send Usage Data. If you are unable to look at this option > now proceed to the next step
  • Move to the Employees tab > then choose Send Payroll Data to open the Send/Receive Payroll Data window
  • Under the Send/Receive Payroll Data Window, select Send All, then enter your payroll service PIN if required

Step II: Update QB payroll tax table

  • Run the QB > go to the Employees tab > hit Get payroll updates > choose Download entire update
  • Choose Update >, and as the process is finished, an informational window confirming the same will display on the screen

Step III: Look for the paychecks stuck online to send

  • Navigate to the Edit tab > then pick Find > go to the Advanced tab
  • Proceed in the Choose Filter segment > open the Filter list > pick Detail Level
  • Choose Summary Only > then move back to the Filter list and page down to select Online Status
  • Then, pick Online to Send, then hit Find, and you will get all the paychecks that weren’t sent to Intuit
  • At the end, take note of the Number of matches in the Find window

Step IV: Rename the damaged CPS folder

  • First, click the Windows + E keys to access the Windows File Explorer > then click on This PC
  • Go to the Local Disk C, then run Program Files (x86) > choose the Intuit folder
  • Open your QuickBooks Desktop folder that matches the current QB version, then hit Components and pick the Payroll folder
  • Right-tap the CPS folder, then select Rename and enter a new folder name
  • At the end, hit the Enter key to save the new folder name successfully
    If your QuickBooks paycheck transactions are not matching, then you need to have a proper process to work through it. For that, you need to visit our dedicated blog that explains it.

Conclusion

In this comprehensive blog, we have discussed the best possible solutions that can eliminate the QuickBooks error PS038 from your desktop. However, to seek professional expertise, you need to dial +1.833.802.0002 and connect with them.
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Pub: 16 Jan 2026 11:02 UTC

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