# **How can I troubleshoot Error PS035?
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How to Troubleshoot Error PS035 in QuickBooks: Complete 1500-Word Guide

QuickBooks is one of the most widely used accounting and payroll management tools across small and mid-sized businesses. Its payroll features simplify salary computations, tax filings, and employee management. However, there are times when users encounter errors that interrupt these operations. One such frequent issue is QuickBooks Payroll Error PS035.

If you're facing this error and wondering how to resolve it, you’re in the right place. In this detailed 1500-word troubleshooting guide, we will explore what Error PS035 means, why it happens, and how you can fix it step-by-step.

What Is QuickBooks Payroll Error PS035?

QuickBooks Payroll Update Error PS035 typically appears when QuickBooks is unable to verify the payroll subscription or download payroll updates. Most of the time, the system displays a message such as:

“We are unable to verify your payroll subscription. Error PS035.”

This means QuickBooks is unable to authenticate your payroll account, either due to expired login details, incorrect company file configuration, or issues related to your payroll service key.

The error usually prevents you from:

Downloading the latest payroll tax table

Processing employee payroll

Running payroll updates

Sending direct deposit payroll

Understanding what causes PS035 is the first step in fixing it.

Causes of QuickBooks Error PS035

Error PS035 can occur due to several factors. Below are the most common reasons:

1. Inactive or Expired Payroll Subscription

If your payroll subscription is expired, QuickBooks cannot verify your service, causing PS035 to appear.

2. Incorrect Service Key or EIN Details

Wrong service key, employer identification number (EIN), or payroll setup information can trigger the error.

3. Damaged or Corrupt Company File

Internal damage or missing components in the company file can prevent payroll verification.

4. Multiple Payroll Subscriptions Active

If multiple or duplicate payroll subscriptions are active in your account, QuickBooks sometimes gets confused when verifying credentials.

5. Issues With Direct Deposit Agreement

If your Direct Deposit agreement is incomplete, outdated, or incorrect, the payroll service may fail to validate.

6. Damaged QuickBooks Installation

Corrupt installation files or damaged Windows components can also cause PS035.

7. Incorrect Windows Settings

User account control settings, regional settings, or date/time configurations may interfere with payroll verification.

8. Pending Payroll Forms or Paychecks

If old or incomplete paychecks exist in your system, QuickBooks may fail to verify the subscription.

Now that we know the causes, let’s move on to the solutions.

How to Fix QuickBooks Error PS035 (Step-by-Step Solutions)

Follow these solutions one by one until the error is resolved.

Solution 1: Check and Verify Your Payroll Subscription

One of the most straightforward causes of PS035 is an inactive subscription.

Steps:

Open QuickBooks Desktop.

Go to Employees > My Payroll Service > Account/Billing Information.

Log in to your Intuit account when prompted.

Check if your subscription shows Active.

If expired, renew it immediately.

After renewing, close and reopen QuickBooks, then try downloading payroll updates again.

Solution 2: Update QuickBooks Desktop to the Latest Release

Outdated versions of QuickBooks often cause payroll errors.

Steps:

Go to Help > Update QuickBooks Desktop.

Click on Update Now.

Select Reset Update and then Get Updates.

Restart QuickBooks once updated.

Now attempt to download payroll updates.

Solution 3: Verify and Correct Service Key Information

Incorrect service key data can cause payroll verification errors.

Steps:

Go to Employees > My Payroll Service > Manage Service Key.

Ensure the service key displayed is correct.

If not, delete the service key.

Click Add, and enter the correct service key.

Select Next, then Finish.

Run payroll update again and check if the issue is resolved.

Solution 4: Check Employee Identification Number (EIN)

Incorrect EIN details will prevent QuickBooks from validating payroll.

Steps:

Go to Company > My Company.

Click on Edit next to company info.

Verify your EIN details.

Correct any inaccuracies and save the changes.

Retry the payroll update.

Solution 5: Remove Duplicate Payroll Subscriptions

Duplicate subscriptions often cause PS035.

Steps:

Open QuickBooks.

Go to Employees > My Payroll Service > Manage Service Key.

Look for duplicate or inactive payroll subscriptions.

Remove any duplicate or unnecessary entries.

Restart QuickBooks and check if the error is gone.

Solution 6: Complete or Remove Incomplete Paychecks

Pending or incomplete items in payroll can disrupt verification.

Steps:

Open the Payroll Center.

Check for any “To Do List” items.

Look for incomplete paychecks, stuck payroll forms, or pending payments.

Complete or delete them as required.

Once done, re-run the payroll update.

Solution 7: Verify and Rebuild Your Company File

A damaged company file may prevent QuickBooks from verifying payroll.

Verify the file

Go to File > Utilities > Verify Data.

Let the system check for errors.

Rebuild the file

After verification, choose Rebuild Data.

Allow the tool to repair your file.

Reopen QuickBooks and try updating payroll again.

Solution 8: Reset QuickBooks Payroll Update

A corrupted update can trigger PS035.

Steps:

Go to Help > Update QuickBooks Desktop.

Select Update Now.

Check Reset Update.

Download updates again.

Try running payroll once updated.

Solution 9: Run QuickBooks Tool Hub

QuickBooks Tool Hub is a powerful utility that resolves issues related to installation, company file, and connectivity.

Steps:

Download QuickBooks Tool Hub (latest version).

Open the tool.

Go to Program Problems.

Click Quick Fix My Program.

If the issue persists, also run:

Company File Issues → QuickBooks File Doctor

Restart QuickBooks afterward.

Solution 10: Check Direct Deposit Agreement

If your DD agreement contains outdated information, QuickBooks cannot verify your account.

Steps:

Go to Employees > My Payroll Service > Account/Billing Info.

Sign in to your Intuit account.

Review the Direct Deposit agreement.

Make sure your bank account, routing number, and business details are accurate.

Once corrected, restart QuickBooks.

Solution 11: Adjust Windows Settings

Incorrect system configurations often cause QuickBooks issues.

Check Date & Time

Right-click the taskbar clock.

Select Adjust date/time.

Enable Set time automatically and Set time zone automatically.

Disable UAC Temporarily

Open Control Panel.

Go to User Accounts.

Click Change User Account Control settings.

Move the slider to Never Notify.

(Turn it back on after troubleshooting.)

Solution 12: Repair QuickBooks Desktop

If damaged program files are the root cause, repairing the software can resolve PS035.

Steps:

Open Control Panel.

Go to Programs and Features.

Choose QuickBooks Desktop.

Click Uninstall/Change.

Select Repair.

Restart your system and attempt the payroll update again.

Solution 13: Verify Internet and Firewall Settings

Incorrect network settings block QuickBooks from connecting to Intuit servers.

Steps:

Ensure a stable internet connection.

Temporarily disable firewall or antivirus.

Add QuickBooks to the exception list of your security tool.

Retry the payroll update afterward.

How to Prevent Error PS035 in the Future

Prevention is always better than cure. Here are the best practices to avoid the error again:

1. Keep QuickBooks and Payroll Updated Regularly

Install updates as soon as they’re available.

2. Maintain Accurate Payroll Information

Ensure your EIN, service key, and company data are always correct.

3. Renew Payroll Subscription Before Expiry

Set reminders for renewal dates.

4. Avoid Duplicate Payroll Subscriptions

Remove unnecessary service keys.

5. Maintain a Clean Company File

Verify and rebuild your company file monthly.

6. Use Reliable Internet Connectivity

Unstable networks can corrupt payroll updates.

7. Update Direct Deposit Information Promptly

Always keep your bank details up to date.

8. Avoid Force-Closing QuickBooks

Unexpected shutdowns can cause data corruption.

Following these steps significantly reduces the chance of PS035 recurring.

Final Thoughts

QuickBooks Payroll Error PS035 is typically a verification-related problem that stops you from downloading payroll updates or processing payroll. Although it can be frustrating, resolving it is straightforward when you understand the root cause.

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