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QuickBooks Error PS038 occurs when QuickBooks Desktop is unable to download payroll updates due to an issue with your payroll subscription or network settings. To resolve this, verify that your payroll subscription is active and properly linked to your QuickBooks account. You can do this by logging into your Intuit account and checking your subscription status. Ensure your QuickBooks is updated to the latest release by selecting Help > Update QuickBooks Desktop. You should also check that your firewall or antivirus is not blocking QuickBooks from accessing the internet by temporarily disabling them or creating exceptions for QuickBooks. If you're still experiencing issues, use the QuickBooks Tool Hub to run a program fix and resolve any installation or update-related issues. If the error continues, contacting QuickBooks Support for more assistance might be necessary.