Fix QuickBooks Desktop Error PS107: Payroll Update Guide

Last reviewed 2026-07-04 4 min read

Error PS107 is a QuickBooks Desktop payroll-update failure tied to the PSxxx payroll family. Learn what causes it and how to keep running payroll on your u

When QuickBooks Desktop throws Error PS107, it usually happens right in the middle of downloading a payroll update. The message typically reads something like "QuickBooks has encountered an internal file error" and references a PS (payroll subscription) code. For anyone trying to keep an aging or discontinued version of Desktop running, this error is a common—and fixable—roadblock.

What Error PS107 Means

Error PS107 is part of the PSxxx payroll-subscription family of errors in QuickBooks Desktop (which includes nearby codes like PS032, PS033, and PS077). These codes all point to the same general failure: QuickBooks cannot validate your payroll subscription or cannot successfully write the downloaded payroll tax tables to your local system.

In plain English, the software tried to get the latest tax calculations from Intuit, but something blocked the download or the save process.

Common Causes

Because the PSxxx family is broad, the exact trigger can vary by version, but the usual culprits are:

Expired or deactivated payroll subscriptions: This is the most common cause for older software. Once a version of QuickBooks Desktop reaches its discontinuation (sunset) date, Intuit cuts off payroll services.
Incorrect billing status: A credit card on file with Intuit may have lapsed, pausing the service.
Damaged QuickBooks components: The payroll folder or the QuickBooks installation itself might be corrupted.
Company file data damage: Your .qbw file might have corrupted employee or payroll preference data, preventing the update from saving.

How to Fix Error PS107

If you are running a version of QuickBooks Desktop that Intuit has officially discontinued, you need to approach this error knowing that Intuit's automated payroll service ends on the sunset date. You cannot force a dead payroll subscription to download new tax tables.

Here is how to resolve the error and keep your Desktop running smoothly:

Verify your payroll subscription status: Go to Employees > My Payroll Service > Account/Billing Info. If your subscription is active but your software is past its sunset date, this is the root of the PS107 error. Intuit's servers are simply refusing the connection.
Pivot to Manual Payroll (The Durable Path): If you want to stay on your current version of Desktop indefinitely, turn off the automated payroll service. You can enable Manual Payroll in QuickBooks by going to Help > QuickBooks Help, searching for "manual payroll," and following the prompt to set your company file to calculate payroll manually. You will be responsible for entering the tax rates yourself, but it keeps everything inside your existing Desktop file.
Use a third-party payroll service: If manual calculations are too tedious, consider running your payroll through an independent third-party provider. You can easily map the outside payroll data into your QuickBooks Desktop company file using standard journal entries or CSV imports, completely bypassing Intuit's PSxxx subscription wall.
Run a QuickBooks Install Diagnostic repair: If your subscription is somehow still active and supported, but the error persists, your installation is likely damaged. Run the QuickBooks Tool Hub, select Installation Issues, and run the QuickBooks Install Diagnostic Tool to repair core program files.
Rename the Payroll folder: Sometimes the downloaded tax files get stuck. Close QuickBooks, find your Components folder (usually hidden in C:\ProgramData\Intuit\QuickBooks), and rename the Payroll folder to Payroll.old. Reopen QuickBooks and attempt the download again.

Preventing PS107 Errors

To keep this error from recurring, the best strategy is to decouple your payroll from Intuit's forced update cycle. By switching to manual payroll or a third-party service, you remove the software's need to ping Intuit's servers for a subscription check entirely.

Additionally, keep your QuickBooks Desktop installation patched up to its final supported release. Even on a discontinued version, installing the very last update Intuit released for that year can resolve lingering background bugs.

When the Company File Itself Is Damaged

If you have successfully bypassed the payroll subscription issue—either by switching to manual payroll or confirming your account is active—but QuickBooks still throws a PSxxx error when you try to process paychecks, your company file is likely damaged.

Payroll data is highly sensitive, and a corrupted .qbw file will actively block tax table updates and paycheck creation to protect your data. If the QuickBooks Verify/Rebuild utility fails to clear the error, you will need to repair the company file directly. For severe corruption that blocks payroll, you can repair a damaged QuickBooks company file to restore the structural integrity of your data and get your Desktop functioning normally again.