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QuickBooks Payroll Setup Error

QuickBooks Payroll Setup Error

QuickBooks Payroll setup error 00000 XXXXX prevents the payroll service from being set up and launched. It crashes the Setup Wizard for the payroll service. When users launch the payroll setup wizard from inside the accounting software, they get an error message that has a long code. These errors seem frightening because of their long error codes, but they are not that difficult to deal with.

To fix the QuickBooks payroll setup error, the user has to view the report and look for an exception that is causing the actual problem. Beyond this, the user may have to deal with payroll item and vendor name duplications, which prevents the setup Wizard from setting up payroll service properly. Employee data and expected range may also have to be corrected to fix the setup error.

In this post, you will learn how to fix the QuickBooks payroll setup error 

Quick Overview of QuickBooks Payroll Setup Error

Error Name:Payroll Setup ErrorDeveloper:Intuit Inc.
Error Description:This error restricts the payroll setup of a program with a complex error code (The error code format is 00000 XXXXX which displays on your screen).Software:QuickBooks
Symptoms:Program window crashes, Windows runs slow, and reacts gradually to the keyboard and mouse inputs.Applies to:Windows 10 and 11
Cause:When the user finds an incorrect file name in the employee center section Solution:To Repair The Error “The Storage Category Map Is Invalid For The Local Tax Payroll Item” ” create A Payroll Item Listing Report To Get Rid Of QuickBooks payroll setup Error

Brief Description of 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 error codes that you might be facing while running the payroll setup are given such as QuickBooks Payroll setup error codes 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 QuickBooks payroll Setup Error Code?

To choose a suitable solution, the user needs to know about the root cause due to which the QuickBooks payroll setup 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?

Solution One: When payroll setup error code 00000 XXXXX appears on the screen

  • 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 of where this error appears 
  • Once you ensure, then you need to make all new changes to fix the QuickBooks Payroll setup error

Solution Two: If the Exception string 0 statement shows “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 the 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 double-clicking on the Vendor name and saving all new changes 

Solution Three: QuickBooks Payroll Error code 00000 can pop up when they find 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

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 “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 

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

  • Go to your “Settings” section and choose the “Control Panel” to choose 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 finished. 

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 the following steps:

  • Open the Reports menu and then choose “Employees & Payroll
  • Then, select the Employee withholding from the list-menu  
  • Now, you have to choose the customized 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 

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 it to Excel 

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

  • Both reports were created to be compared to view 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 double-click on “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 you don’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. This blog aims to work hassle-free and repair all QuickBooks payroll errors in a minimum time frame. For further queries, connect with the QuickBooks helpdesk. 


  1. Why does a QuickBooks Payroll setup error happen?

    There are various reasons due to which this error appears or you are 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 to fix payroll errors in QuickBooks Desktop?

    To fix payroll errors in QuickBooks, you must:

    1. Tap on the Help menu.
    2. Select About QuickBooks.
    3. Press Ctrl + Alt +Y on your keyboard, then tap on Next.
    4. In the Employee Summary Information window, choose the underpaid employee.
    5. Double-tap on the employee’s name…
    6. Review the Year to Date Adjustment details.
    7. Tap Ok.

  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 why QuickBooks Payroll setup error occurs. Resolve these errors with a suitable solution.

  4. How do I set up QuickBooks payroll Manually?

    To set up manual payroll, you must:

    1. Move to the Edit menu, and select Preferences.
    2. Choose Payroll & Employees, then tap on the Company Preferences tab.
    3. In the QuickBooks Desktop Payroll Features segment, choose the Full Payroll and Manual Payroll checkboxes.
    4. In the Find Payday Peace of Mind window, tap on Next and then Activate in the confirmation screen.
    5. Choose OK to apply the changes.
    6. Finally, choose OK to exit the Preferences window.

  5. How do I set up payroll for my employees?

    1: Have all employees complete a W-4 form…
    2: Find or sign up for Employer Identification Numbers…
    3: Choose your payroll schedule…
    4: Calculate and withhold income taxes…
    5: Pay payroll taxes…
    6: File tax forms & employee W-2s.

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