Top QuickBooks Payroll Errors and How to Fix Them?

QuickBooks Payroll is a powerful tool for managing employee payments, taxes, and other financial tasks. However, users occasionally encounter errors while using the system. These errors can range from setup issues to technical glitches and incorrect calculations.

Common QuickBooks Payroll Errors

Here are some of the most frequently reported errors:

• QuickBooks Error PS038: Occurs when paychecks remain “stuck” in the system during payroll updates.
• QuickBooks Payroll Update Error 15106: Relates to failed updates caused by restrictions or antivirus software.
• Incorrect Payroll Taxes Calculation: Results from misconfigured payroll settings or outdated tax tables.
• Direct Deposit Not Working: Arises due to incorrect banking details or connectivity issues.
• QuickBooks Payroll Error 30159: Indicates improper configuration of the payroll system.

Let’s explore these QB errors in detail and how to fix them.

Fixing Common QuickBooks Payroll Errors

QuickBooks Error PS038

This error occurs when a paycheck remains “pending” after processing, typically during an update.

Steps to Fix:

1. Open the Employees tab in QuickBooks.
2. Select Payroll Center.
3. Check the status of all paychecks in the “send” queue.
4. Run the Verify Data Tool:
   • Go to File > Utilities > Verify Data.
   • Follow the prompts to detect issues.
5. Use the Rebuild Data Tool if issues are found:
   • Navigate to File > Utilities > Rebuild Data.
   • Allow QuickBooks to rebuild the company file.
6. Send the pending paychecks again by clicking on Send Payroll Data.

QuickBooks Payroll Update Error 15106

This error appears when the payroll update is interrupted, often due to user permissions or antivirus restrictions.

Steps to Fix:

1. Run QuickBooks as an Administrator:
   • Right-click on the QuickBooks icon and select Run as Administrator.
2. Disable Antivirus Software Temporarily:
   • Locate your antivirus program and disable it during the update process.
3. Manually Update QuickBooks Payroll:
   • Open QuickBooks.
   • Go to Help > Update QuickBooks Desktop.
   • Download and install the latest updates.
4. Rename the Download Folder:
   • Locate the C:\Program Files\Intuit\QuickBooks\Components folder.
   • Rename the “download” folder to “download.old” and try updating again.

Incorrect Payroll Taxes Calculation

This error results from outdated tax tables or incorrect employee information.

Steps to Fix:

1. Update Payroll Tax Table:
   • Go to Employees > Get Payroll Updates.
   • Select Download Entire Update and click Update.
2. Verify Employee Information:
   • Go to Employees > Employee Center.
   • Verify tax details, including filing status and allowances.
3. Check Company Payroll Settings:
   • Navigate to Edit > Preferences > Payroll & Employees.
   • Ensure tax setup matches your organization’s requirements.

Direct Deposit Not Working

Direct deposit errors often stem from incorrect banking details or connectivity issues.

Steps to Fix:

1. Verify Bank Account Information:
   • Go to Employees > Employee Center.
   • Confirm the routing and account numbers are correct for affected employees.
2. Check Direct Deposit Status:
   • In the Payroll Center, click on Send Payroll Data.
   • Confirm there are no errors in submission.
3. Contact Your Bank:
   • Ensure the bank account associated with payroll is active and has sufficient funds.
4. Run a QuickBooks Connection Diagnostic Tool:
   • Download the tool from Intuit’s website to identify and resolve connectivity issues.

QuickBooks Payroll Error 30159

This error is typically due to improper QB payroll setup error or system configuration.

Steps to Fix:

1. Verify Payroll Subscription:
   • Go to Employees > My Payroll Service > Account/Billing Info.
   • Ensure your subscription is active.
2. Revalidate EIN (Employer Identification Number):
   • Navigate to Company > My Company > Edit Payroll Settings.
   • Check and re-enter your EIN if necessary.
3. Repair QuickBooks Installation:
   • Open Control Panel > Programs and Features.
   • Select QuickBooks, click Uninstall/Change, and choose Repair.
4. Run System File Checker:
   • Open Command Prompt as an administrator.
   • Type sfc /scannow and press Enter to repair corrupted system files.

Preventing QuickBooks Payroll Errors

To minimize the occurrence of payroll errors:

• Update Regularly: Always keep QuickBooks and payroll tax tables up to date.
• Verify Employee Data: Regularly check employee profiles for accuracy.
• Ensure Proper System Configuration: Follow Intuit’s system requirements for QuickBooks Payroll.
• Backup Data: Create backups of your QuickBooks data before making changes or updates.
• Use Diagnostic Tools: Utilize Intuit’s diagnostic tools to detect and resolve errors proactively.

Conclusion

QuickBooks Payroll is a robust tool, but like any software, it is prone to occasional errors. By understanding common issues like Error PS038, Update Error 15106, and tax miscalculations, users can effectively troubleshoot and resolve problems. Regular updates, accurate data entry, and proactive use of diagnostic tools can minimize disruptions.

Taking a systematic approach to resolving the QuickBooks payroll errors ensures smooth operations and helps maintain compliance with tax regulations. If challenges persist, consulting QuickBooks support or a financial professional is highly recommended.

FAQs About QuickBooks Payroll Errors

Why does my QuickBooks payroll update fail repeatedly?

Failed updates may result from connectivity issues, firewall restrictions, or insufficient user permissions. Running QuickBooks as an administrator and disabling antivirus during updates can help.

How can I correct an incorrect paycheck in QuickBooks?

To fix an incorrect paycheck:

1. Go to Employees > Edit/Void Paychecks.
2. Select the incorrect paycheck and make adjustments.
3. Save changes and reprocess the payroll if needed.

What should I do if payroll taxes are not calculated correctly?

Verify that your tax tables are up-to-date, employee tax settings are correct, and the company payroll setup is accurate. Update payroll data regularly to avoid calculation errors.

How do I handle a situation where direct deposits fail?

Ensure all bank account details are correct and confirm the bank account has sufficient funds. If issues persist, use QuickBooks diagnostic tools or contact your bank.

Can I recover lost payroll data in QuickBooks?

Yes, if you have backups, you can restore lost payroll data by going to File > Open or Restore Company > Restore a Backup File.

About the author: Jony Holmes

Looking for Best Accounting Software Solutions, Consulting & Technical Service Askofficial, Sage & QuickBooks Installation, Migration, Errors Upgrade & Download Problems Resolved 24*7 Helpdesk.