Why am I getting QuickBooks payroll error PS036 after new updates?

QuickBooks is a go-to software for many businesses managing finances, payroll, and accounting. However, like any other technology, it can throw unexpected errors — especially after updates. One such frustrating issue is QuickBooks Payroll Error PS036.

This comprehensive guide explains why you may receive Error PS036 after recent updates and walks you through how to identify, troubleshoot, and resolve it. A detailed Q&A section follows to address common user questions.

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What is QuickBooks Payroll Error PS036?

QuickBooks Payroll Error PS036 typically appears when there’s a problem validating your payroll subscription. It’s often triggered when trying to update payroll or run payroll-related activities.

The error message usually reads:

“Error PS036: There is a problem verifying your payroll subscription.”

This issue often prevents users from downloading the latest payroll tax tables or running payroll accurately.

Why Do You Get Error PS036 After New Updates?

This error can seem to come out of nowhere, especially if everything was working fine until a recent QuickBooks update. Here's why it happens:

1. Payroll Subscription Not Verified

After an update, QuickBooks may attempt to revalidate your payroll subscription. If it encounters issues—such as expired login credentials or interrupted internet—it can throw Error PS036.

2. Corrupt or Damaged QuickBooks Files

Updates can sometimes conflict with existing data or corrupt essential QuickBooks components, particularly the Paysub.ini file, which holds subscription info.

3. Outdated Payroll or Tax Table

An update may require the latest tax table, and if you haven’t downloaded it correctly or completely, the software might block payroll functionality.

4. Multiple QuickBooks Versions Installed

Having more than one version or edition of QuickBooks Desktop installed on the same system can confuse the subscription validation process.

5. Incorrect Service Key or EIN

After an update, the stored payroll service key or EIN (Employer Identification Number) may become invalid or not match what’s on record with Intuit.

6. Inactive Payroll Subscription

In some cases, the update reveals a previously unnoticed issue—like an expired payroll subscription—even though QuickBooks had been functioning.

How to Fix QuickBooks Payroll Error PS036

Step 1: Update QuickBooks Desktop

Ensure you're on the latest version:

Go to Help > Update QuickBooks Desktop.
Click the Update Now tab.
Checkmark all updates, then click Get Updates.
Restart QuickBooks after the update.

Step 2: Verify Payroll Subscription

Make sure your payroll subscription is active and valid.

Go to Employees > My Payroll Service > Account/Billing Information.
Sign in using your Intuit credentials.
Check that the subscription is active and current.

Step 3: Verify EIN and Service Key

Go to Employees > My Payroll Service > Manage Service Key.
Ensure your EIN and service key match what’s on your Intuit account.
If needed, remove and re-enter the service key.

Step 4: Rename Paysub.ini File

This file stores payroll subscription info. Renaming it forces QuickBooks to create a new one.

Close QuickBooks.
Press Windows + R, type %ProgramData%\Intuit\QuickBooks 20XX\Components\Payroll\Paysub.ini, and press Enter.
Right-click the Paysub.ini file and rename it to Paysub.old.
Restart QuickBooks and try updating payroll again.

Step 5: Use the QuickBooks Tool Hub

Download the QuickBooks Tool Hub from Intuit’s official site.
Open it and select Program Problems > Quick Fix my Program.
After it runs, restart your computer and try updating payroll again.

Step 6: Revalidate Payroll Service

Go to Employees > Send Payroll Data.
Select Send, even if there’s no data to send.
QuickBooks will attempt to connect and validate your subscription.

QuickBooks Payroll Error PS036 – Q&A

Q1: Why did this error appear right after an update?

A: Updates often trigger background validations. If there’s any mismatch in your payroll subscription, EIN, or service key—or corrupted files—it gets flagged right after an update.

Q2: What does the Paysub.ini file do?

A: It stores information related to your payroll subscription. If this file is damaged or outdated, QuickBooks may not verify your subscription correctly.

Q3: I have multiple QuickBooks versions on my computer. Could that cause PS036?

A: Yes. Multiple installations can confuse the system during payroll validation, especially after updates. It's best to uninstall older or unused versions.

Q4: Can I ignore PS036 if payroll seems to be working?

A: No. Even if payroll appears to function, this error can cause incorrect tax calculations or prevent future payroll updates. It's best to fix it right away.

Q5: Is it safe to delete the Paysub.ini file?

A: Yes, it's safe to rename or delete it. QuickBooks will automatically create a new one when you reopen the software and try payroll functions.

Q6: My payroll subscription is active, but I still get PS036. Why?

A: There may be a mismatch between your subscription and the stored service key or EIN. Also, damaged program files or incorrect internet settings can cause this.

Q7: Will reinstalling QuickBooks fix PS036?

A: It might, especially if files are corrupted. But try renaming the Paysub.ini and re-validating the service key first—those steps often resolve it faster.

Q8: What if my internet connection is unstable?

A: Payroll validation needs a steady internet connection. If your connection drops or is blocked by a firewall, QuickBooks may fail to verify your subscription, causing PS036.

Q9: Can the QuickBooks Tool Hub fix this error?

A: In many cases, yes. The Tool Hub includes diagnostic tools that can repair damaged files or fix program errors causing PS036.

Q10: How can I prevent PS036 in the future?

Keep QuickBooks and payroll tax tables up to date.
Regularly verify your payroll subscription status.
Ensure correct EIN and service key info.
Avoid using multiple QuickBooks versions.
Use a reliable internet connection.

Final Thoughts

QuickBooks Payroll Error PS036 is frustrating—especially after what should be a helpful update. But in most cases, it's a matter of QuickBooks being unable to verify your payroll subscription due to mismatched or outdated files, incorrect settings, or internet issues.