Troubleshooting QuickBooks Payroll Update Not Working

Understanding the QuickBooks Payroll Update Issue

QuickBooks Payroll keeps your business compliant with tax laws, employee wages, and benefits. But when the QuickBooks Payroll Update Not Working message appears, it disrupts your operations and adds unnecessary stress to your workday.

Having problems with QuickBooks payroll update not working? Discover the causes, error codes, and easy solutions to get payroll updates working again. Call +1(866)408-0544.

This issue typically means QuickBooks is unable to download or install the latest payroll data, affecting tax table updates, direct deposits, or paycheck calculations.

What Happens When the Payroll Update Fails?

Here’s what you may experience when QuickBooks payroll updates fail:

Inability to calculate taxes or deductions correctly
Errors when processing payroll or running reports
Direct deposit failures
Missed payroll deadlines

These issues can lead to non-compliance, delayed paychecks, or even penalties.

Common Error Messages Linked to Payroll Update Issues

When payroll updates fail, QuickBooks often displays one of the following error codes:

Error PS033 – Unable to read payroll setup files
Error PS038 – Payroll data stuck in “Online to Send”
Error 15222 – Internet security or software conflict
Error 12007 or 12029 – Network timeout or dropped connection
Error PS107 – Damaged file or interrupted update
Error 15240 – Failed due to file permissions or firewall block

Recognizing these messages can help you quickly identify the root cause.

Why Is My QuickBooks Payroll Update Not Working?

Let’s explore the key reasons why this issue occurs:

1. QuickBooks Desktop Is Not Updated

Older versions of QuickBooks may not be compatible with the latest payroll data, leading to download or installation failures.

2. Expired or Inactive Payroll Subscription

If your payroll service has lapsed or is inactive, QuickBooks will block access to updates.

3. Internet and Security Settings Conflicts

Improper browser configurations or blocked ports can prevent communication with Intuit servers.

4. Missing Admin Permissions

QuickBooks needs admin rights to run updates successfully. Lack of permissions can cause the update to stall or fail.

5. Corrupted Payroll Folder or Installation

Damaged files within the QuickBooks installation—especially in the CPS (Critical Payroll System) folder—can trigger update errors.

6. Firewall or Antivirus Interference

Security software might mistakenly block QuickBooks from accessing payroll servers.

How to Fix QuickBooks Payroll Update Not Working

Follow these proven steps to resolve the issue:

Step 1: Check Your Payroll Subscription Status

Open QuickBooks Desktop.
Navigate to Employees > My Payroll Service > Account/Billing Information.
Log in to your Intuit account.
Make sure your subscription is active and paid.

Step 2: Update QuickBooks to the Latest Version

Open QuickBooks.
Click Help > Update QuickBooks Desktop.
Choose the Update Now tab.
Select Reset Updates and then click Get Updates.
After the update, restart QuickBooks and install any new components.

Step 3: Run QuickBooks as an Administrator

Close QuickBooks if it’s running.
Right-click the QuickBooks icon.
Select Run as Administrator.
Try downloading the payroll update again.

Step 4: Rename the CPS Folder

Go to C:\Program Files\Intuit\QuickBooks <year>\Components\Payroll\CPS.
Right-click the CPS folder and rename it to CPS_old.
Reopen QuickBooks and attempt the payroll update.

Step 5: Configure Internet and Security Settings

Make sure Internet Explorer is your default browser (QuickBooks uses IE settings).
Open Internet Options > Advanced > Reset to default settings.
Add QuickBooks to your firewall exceptions list.
Ensure ports 80 and 443 are not blocked.

Step 6: Download Payroll Update Manually

Go to Employees > Get Payroll Updates.
Check the box for Download Entire Update.
Click Download Latest Update.
Wait until the download completes and confirm the update.

Best Practices to Prevent Payroll Update Issues

Avoid recurring issues with the following maintenance tips:

Keep QuickBooks and Windows updated regularly
Create automatic backups before updating payroll
Use a wired internet connection during updates
Avoid running updates during system scans or backups
Review firewall and antivirus settings often

These habits will help you reduce update failures and payroll disruptions in the future.

When to Contact a QuickBooks Expert

If none of the above solutions fix the issue, your problem might be more complex—such as corrupted registry entries, deep-level file damage, or server communication errors.

Don’t wait for things to get worse. Call our expert QuickBooks support team for immediate help.

Call now: +1(866)408-0544

We offer fast, one-on-one troubleshooting for payroll, tax table errors, software bugs, and installation problems.

Conclusion

The QuickBooks Payroll Update Not Working issue can be caused by outdated software, internet conflicts, file corruption, or even expired subscriptions. While it can feel overwhelming, most problems are fixable with the right steps.

This guide walked you through: