Payroll is an important part of running a business, so it can be stressful when QuickBooks does not process your payroll. You may see a payroll error, a pending status, a failed transmission, or a message saying QuickBooks cannot connect to the QuickBooks payroll Service.
The cause can be anything from an outdated payroll tax table to an internet connection problem, incorrect account information, or a stuck payroll transaction. Here are some simple ways to troubleshoot the issue.
QuickBooks needs an internet connection to send payroll information and, depending on your payroll service, process direct deposits.
Check that your computer is connected to the internet. If the connection is unstable, restart your router and try again.
For QuickBooks Desktop, firewall or internet security settings can also prevent payroll information from reaching Intuit's servers.
Make sure your payroll subscription is active.
In QuickBooks Desktop, go to Employees > My Payroll Service > Manage Service Key. Check that the payroll service and status are correct.
If your service key is incorrect or the payroll service is not active, payroll updates and processing may not work properly.
An outdated version of QuickBooks Desktop or an old payroll tax table can cause payroll problems.
Open QuickBooks and check for the latest product updates. Then download the latest available payroll tax table.
If the update fails, QuickBooks recommends checking firewall settings and using the QuickBooks Tool Hub to troubleshoot update problems.
If you use direct deposit, check the payroll status before trying to submit payroll again.
In QuickBooks Desktop, go to Employees > View Payroll Run Status. Select the recent payroll to see its current status.
A payroll can show statuses such as Sent to Intuit, Sent to Bank, or Payroll processed. A rejected or declined status can indicate problems such as insufficient funds or incorrect bank account information.
If you use QuickBooks Desktop, payroll data may fail to send while QuickBooks is in multi-user mode.
Switch to Single-user Mode before sending payroll data. Intuit lists multi-user mode as one possible cause of payroll connection errors.
Incorrect system date or time settings can interfere with QuickBooks payroll connections.
Check the date, time, and time zone on your computer. Correct them if necessary, then restart QuickBooks and try processing payroll again.
Intuit identifies incorrect system date and time settings as a possible cause of payroll connection problems.
Look for Stuck Payroll Transactions
Sometimes a paycheck can become stuck with an Online to Send status. This can prevent payroll from running or payroll tax tables from downloading.
For certain Desktop Payroll errors, including PS038, Intuit recommends syncing payroll data and, when needed, rebuilding the company file after creating a recent backup.
Do not delete or change payroll transactions without first making a backup of your company file.
Incorrect employee or payroll information can also cause problems.
Check employee details, pay rates, tax settings, pay periods, and other payroll information before processing payroll.
If a paycheck is calculating incorrectly rather than simply failing to process, QuickBooks notes that employee setup, payroll items, tax rates, wage limits, and outdated tax tables can be possible causes.
If you use QuickBooks Desktop and basic troubleshooting does not work, the QuickBooks Tool Hub can help repair common program problems.
Open the Tool Hub and select Program Problems > Quick Fix My Program. This closes background QuickBooks processes and performs a quick repair.
After it finishes, reopen QuickBooks and try processing payroll again.
If you use direct deposit with QuickBooks Desktop, creating the payroll is not always the final step.
Go to Employees > Send Payroll Data. Review the payroll and select Send All when you are ready to transmit it. You may need to enter your Direct Deposit PIN.
Also check your payroll's processing deadline. Sending payroll too late can affect when employees receive their money.
Why is QuickBooks payroll stuck?
A stuck payroll can be caused by a connection problem, outdated payroll updates, incorrect account information, or a paycheck that is stuck in an online-to-send status.
Why won't QuickBooks send my payroll?
Check your internet connection, payroll subscription, tax table, firewall settings, and QuickBooks mode. If using Desktop Payroll, make sure you are in Single-user Mode when sending payroll data.
Can an outdated QuickBooks version stop payroll?
Yes. An outdated QuickBooks release or payroll tax table can cause payroll update and processing problems.
Why is my direct deposit still pending?
Check the payroll status in QuickBooks. A pending or processing status does not necessarily mean the payroll has failed. Review the status before sending the payroll again.
Should I run payroll again if it has not processed?
Do not immediately submit the same payroll again. First check its status and determine whether it was received or is still being processed. Sending it again could create duplicate payroll transactions.
When QuickBooks payroll is not processing, start with the basics. Check your internet connection, payroll subscription, software updates, tax tables, and payroll status. QuickBooks Desktop users should also check whether they are in Single-user Mode and look for stuck payroll transactions. Taking these steps can help identify the cause without accidentally submitting the same payroll more than once.