QuickBooks Error 12038 generally occurs when you try to download the latest payroll or software updates. This error indicates that QuickBooks cannot establish a stable internet connection with the Intuit server , causing the update process to fail.
Why Does QuickBooks Error 12038 Occur?
Several factors can lead to this error:
- Internet Connectivity Issues – Weak or unstable internet connection.
- Incorrect Internet Explorer Settings – QuickBooks requires IE as the default browser.
- Firewall or Security Blockages – Security software may block QuickBooks connections.
- Expired Payroll Subscription – Outdated or inactive payroll service.
- Multiple QuickBooks Versions Installed – Conflicts between versions.
How to Fix QuickBooks Error 12038 – Step by Step
To resolve the error, try these methods:
1. Check Internet Connection
- Open Internet Explorer and visit any website.
- If browsing fails, fix your connection before retrying payroll updates.
2. Verify Internet Explorer Settings
- Open IE > Internet Options > Advanced Tab .
- Enable SSL 2.0 and SSL 3.0 .
- Set IE as the default browser .
3. Configure Firewall & Security Software
- Allow QuickBooks and QBW32.exe in firewall exceptions.
- Temporarily disable antivirus to test updates.
4. Update Payroll Subscription
- Open QuickBooks, go to Employees > My Payroll Service > Account Info .
- Confirm your subscription is active and updated .
5. Use QuickBooks Tool Hub
- Download and install the QuickBooks Tool Hub (latest version) .
- Run the Network Issues Repair Tool to fix connectivity errors.
Final Thoughts
QuickBooks Error 12038 is primarily an internet or security configuration issue . Following the above steps usually resolves it quickly. However, if the error persists, you can dial 877-419-2575 and get immediate help from a certified QuickBooks payroll expert.