Payroll Update keeps saying "... We strongly recommend that you go online again before 04/01/2021. [PS038] - And I get the Error Codes: 40003

I'm here to make sure you'll be able to deduct tax in QuickBooks, @momfattahi.

There are several reasons why no deductions are calculated in QuickBooks.

• Total annual salary surpasses the salary limit.
• The gross wages of the employee's last payroll are too low.
• Ensure to run the latest payroll update.

When the federal withholding is not deducting accordingly, you’ll have to revisit your employees’ profiles to check if they are set up correctly. QuickBooks calculates the federal withholding based on these factors:

• Taxable wages and number of allowances/dependents
• Pay frequency and filing status

Here's how to review your employees’ payroll information:

1. Select the Employees menu.
2. Click Employee Center.
3. Choose the employee’s name, one at a time.
4. Click Payroll Info on the left.
5. Ensure that the Pay Frequency is correct.
6. Select the Taxes button.
7. In the Federal tab, review the Filing Status and Allowances fields. Make the necessary corrections.
8. Choose OK.
9. Select OK again.

Otherwise, if you add the deduction to your employee’s first payroll of the year, the liabilities will be added to the current year. What you can do is to create an adjustment check dated the same as the last payroll. By doing so, you’ll not have problems with your 2020 tax forms like 941 and W2.

If you have pending paychecks from the Enter Payroll Information window, right-click on the paycheck, then choose Revert Paycheck to undo the changes. Once completed, re-enter the paycheck details to ensure taxes are calculated correctly.

For additional reference about this action, read this article: How to save or revert pending paychecks.

Here are also some lists of articles you can read more about paychecks calculation in QBDT:

• Payroll items on paycheck are not calculating or are calculating incorrectly
• QuickBooks Desktop calculates wages and/or payroll taxes incorrectly

Feel at ease to let me know if you need further assistance in managing some payroll concerns. I'll gladly help you in any way that I can. Keep safe and take care.

I'm here to help you out and fix the error message you've encounter, ToniDavis. 

The error could be caused by damaged components in your QuickBooks, your connection, or firewall settings. First, let's update your QuickBooks to get the latest release and fixes to resolve random errors in the program. See this update QuickBooks to the latest release article for more information. 

1. Go to the Help menu, then tap Update QuickBooks Desktop.
2. Go to the Update Now tab, then press the Reset Update checkbox.
3. Click Get Updates. When the download is complete, close and re-open QuickBooks Desktop.
4. Go to the Help menu, then select Update QuickBooks Desktop.
5. Go to the Overview tab, then select Update Now. 

If you'll still receive the same error when updating payroll, you can do the following: 

• Verify and troubleshoot QuickBooks Desktop and Internet Explorer settings
• Configure firewall and internet security settings for QuickBooks Desktop 

That'll do it. Don't hesitate to reach out anytime if you need help with anything else. The Community is always here to lend a hand. Thanks for posting and have a wonderful day. Stay safe!

Hi drroa,

Thanks for your interest in payroll. You'll need to have a payroll subscription to be able to use the Payroll service in QuickBooks Desktop. You may contact our QuickBooks Desktop Payroll team to buy one. They will also guide you on how to activate it.

Here's an article for your reference: Activate QuickBooks Desktop Payroll.

If you have other questions in mind, feel free to go back to this thread.

Hi there, Jallyson.

Thank you for visiting the QuickBooks Community and I appreciate you for performing the troubleshooting steps above to fix the issue. With that, I'll ensure you'll be routed to the right support team to assist you in resolving the payroll updates concern as soon as possible.

Yes, it's right that when you received the error 1328, reinstalling QuickBooks using clean install is one of the solutions to fix it. Then, if this doesn't work, you can follow the second instructions provided in the article you've mentioned to continue resolving the problem.

On the other hand, the message "Accountant's Changes Pending" shows at the top of your QuickBooks Desktop window to inform you that an accountant's copy of your company file has been created. The accountant's copy allows you to work on current transactions while the accountant works on transactions from previous fiscal periods. When your accountant finishes, you can import the accountant's changes into your company file. You can click this article to view further details: Accountant's Changes Pending message.

However, I still suggest contacting our QuickBooks Desktop Payroll Support Team. They have the tools to pull up your account in a secure environment which we're unable to do it here in the Community. This way, they'll be able to investigate the cause of the issue on why it continues to occur and provide you with extra details of your concern.

Lastly, you may refer to this article to see various information on how you can fix the error message PS038 that might you encounter when trying to run payroll or when downloading payroll updates: Resolve payroll error PS038.

Let me know in the comment section down below if you have any other concerns about payroll. I'll be always around ready to lend a helping hand.