I know that updating payroll is important to run your business and pay your employees on time, @Rickshaw. Let's ensure your payroll is active to do the update.
Based on the error message you encountered, it could be that your payroll subscription has already expired. I suggest reviewing your billing information to make sure you have the updated payment details.
I'd also like to clarify if you're using QuickBooks Desktop Payroll? If so, kindly login to your Intuit Account, then go to the Account/Billing Info and make some updates (if applicable). In case you'll have to reactivate your account, follow these:
Through your company file
Open your QuickBooks Desktop company file, click on Employees and choose My Payroll Service.
Go to the Status section, then select Resubscribe.
Go through the on-screen steps to reactivate your payroll service.
Through your Intuit account
Log in to your account using your Intuit account like you normally do.
Go to the Status section, then click on Resubscribe.
Go through the on-screen steps to reactivate your payroll service.
Please note that the reactivation may take up to 24 hours. Once complete, you can proceed to update payroll and your subscription should show as active.
On the other hand, follow these steps if you're using QuickBooks Online Payroll:
Log in to your QBO company as a primary admin.
Click on Settings ⚙, then select Account and settings.
Choose Billing & Subscription.
Click on Edit ✎ next to your payment method.
This will open the Wallet list. From this view you can:
Edit the payment method used for QuickBooks Online billing (expiration date, billing address, account holder name)
Add a new payment to be used for QuickBooks Online billing
Switch QuickBooks Online billing to the previously stored payment method
After saving, the payment method will be shown on the Billing & Subscription page.
For more information about handling your subscription, read these modules: