QuickBooks Payroll Setup Error

What should I do when I get unexpected errors in QuickBooks? No worries, we are here to fix your all accounting problems. Like other online accounting software, QuickBooks also encounters an error issue while functioning the accounting programs. QuickBooks payroll setup is the most irritating error you might be facing.

The user has to resolve this interruption as quickly as possible otherwise it may damage your important data or might be blocking you to track other payroll services. Read this article to figure out and resolve the QuickBooks Payroll Setup error. This error restricts the payroll set up of a program with complex error code (The error code format is 00000 XXXXX which displays on your screen).

Don’t get panic, here you find complete details including causes, symptoms, and multiple methods to find the relevant solutions. 

Brief Description on QuickBooks Payroll setup error 

This unexpected error disappoints users with major problems while running QuickBooks. This problem appears on your screen with different error codes. Some of the errors codes that you might be facing while running the payroll set up are given such as QuickBooks Payroll set up error code 00002 71328, 00002 20123, 00000 17002, 00000 38049, 00000 88579, 00000 38772, 00000 97340, 00000 88703, 00000 40370, 00000 99867, 00000 88703, 00000 34289. The Error codes vary from 00000 00001 to 00000 99999

What are the causes of the QB payroll Setup Error Code?

To pick a suitable solution, the user has to know about the main root due to which this error appears.

All possible reasons are listed below:

  • The wrong file name is updated in the vendor’s list menu 
  • Duplicate entries for an employee’s name 
  • When your timesheet entry has a special character 
  • When the user finds an incorrect file name in the employee center section 

How to fix the QuickBooks Payroll Setup Error?

1. Solution One: If this error code “Payroll Setup Error Code 00000 XXXXXX” pops-up on your screen, then you need to perform the below steps:

  • Hit the first click on the “View Report” link 
  • Then, users need to open another window that shows the complete details about the unrecoverable error 
  • Now, you have to open the “ReportHeader.xml” file by hitting the double-click on the file name from the window list 
  • Must be sure that you open your file in internet explorer. If you can’t find this, then note the location of the ReportHeader.xml file
  • After this, you have to use Windows Explorer then move forward to the ReportHedaer.xml  location 
  • Then hit the right -click on the ReportHeader.xml file 
  • Select the “Open in a new window” option. This will open your file in internet explorer 
  • Locate for exception string 0 by using the CTRL + F key at the same time 
  • Then the reports will appear on your screen which gives you complete details from where this error appears 
  • Once you ensure, then you need to make all new changes to fix the QuickBooks Payroll setup error

2. Solution Two: If the Exception string 0 statement will show “This item has already been added”  on your screen then perform the below guidelines:

  • Open the Vendors menu and then click on the “Vendor Centre”
  • Find that specified vendor due to which this error appears. The vendor may be listed twice 
  • Now, the user is required to rename with a unique identity. This can be completed by hitting the double-click on the Vendor name and save all new changes 

4. Solution Three: When QuickBooks Payroll Error code 00000 can pop-up when they found the duplicate name in the Employee list.

To remove the duplicate names from the Employee center follow the below-mentioned steps:

  • From the top menu, select the Employees section  
  • Then, you have to choose the Employee center 
  • Click on the “View” option and then choose “All Employees” from the drop-down list
  • This section will include the list of inactive employees
  • Hit the right-click on the duplicates to select the Delete Employee

4. Solution Four: If a blank character error  on the employee names from the employee center then the user required to perform the below guidelines 

The character error could be a space that is placed in front of that employee name or that specified names mistakenly entered into the “Print on Check as a field in the Employee profile” 

  • Go to the Employees section and then select the “Employee Centre”
  • Click on the “All Employees” from the view drop-menu options including all inactive employees 
  • The user has to view all employee name setups to delete unnecessary spaces. You have a choice to enter manually first and last name in the given section 

5. Solution Five: If this error message “Font Arial does not support style Regular” or the “Email the Customer the Arial font” will appear on your screen then 

  • Go to your “Settings” section and choose the “Control Panel” to chose the Fonts 
  • Now you need to drag and drop the font content to an email and then send it to the customer
  • After this, your item will be sent as an attachment 
  • The final step is to click on the “Install” button and follow the displayed guidelines until the program is not finished. 

6. Solution Six:  To repair the error “The storage category map is invalid for the local tax payroll item” you have to create an employee withholding with these following steps:

  • Open the Reports menu and then choose the “Employees & Payroll”
  • Then, select the Employee withholding from the list-menu  
  • Now, you have to choose the customize report 
  • From the column section, the user has to remove the checkmarks from present items and then place a checkmark next to the Employee, Local tax 1, Local tax 2, local tax 3, local tax 4, local tax 5, local tax 6, local tax 7, local tax 8, local tax 9, local tax 10, local tax 11, local tax 12 
  • Go to the Filters tab and then click on the “Active Status” and then choose All
  • Hit the Ok button and then print or export to the excel 

7. Solution Seven: Create a payroll item listing report to get rid of this error

  • Open the Reports menu and then choose  the Payroll item listing 
  • The next step is to choose the Customize Report 
  • Go to the items’ sections and then remove all checkmarks 
  • Switch to the Active Status and then choose All
  • Open the filters tab and hit the ok button 
  • Make sure you don’t close the report and then print or export to the excel 

After following the above steps, to ensure the results, go with the below-mentioned guidelines 

  • Both reports created to be compared to view for the local taxes that are not other types
  • Every employee with a tax item but make sure that is not another type to be edited 
  • Open the Employee Withholding report and hit the double-click on the “Employees”  to view the Edit employee window
  • Hit the click on the “Payroll info” tab and then click on the Taxes button
  • Go to another tab to delete the tax item  but make sure that doesn’t have to type other 
  • Hit the OK twice to save all new changes 
  • Then run the payroll setup again and view and check whether the issue is resolved or not 


Thank you for reading this blog, we hope the above information was useful for you to resolve the QuickBooks Payroll setup error. The aim of this blog is to work hassle-free and repair all QuickBooks payroll bugs in a minimum time frame. For further queries, connect with the QuickBooks helpdesk. 

If you get stuck anywhere in the process, feel free to get in touch with Payroll.AccountingErrors Support Team.


  1. Why does QuickBooks Payroll setup error happen?

    There are various reasons due to which this error appears or you unable to compute the payroll taxes. Among all reasons, the main reason is when the total yearly salary exceeds more than the salary limit or due to the gross wages of the employee’s last employee payroll being too low.

  2. How can I repair the QuickBooks Payroll setup error?

    Open the Help menu and click on the “About QuickBooks” option. Then, you need to press the Ctrl + Alt + Y key simultaneously. Hit the Next button to move forward to the Employee Summary Information window. Then choose the underpaid employees. Hit the double-click on the Employee’s name and then review the adjustment details. Click on the Ok button to finish the program.

  3. Why is my QuickBooks Payroll unable to work?

    The user has to clear the cache and cookies in the web browser to delete the saved internet files. These stored files are the main reason due to which QuickBooks Payroll setup error occurs. Resolve these errors with a suitable solution.


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