QuickBooks Payroll Setup Error

The QuickBooks Payroll setup error 00000 XXXXX prevents the payroll service from being configured and activated, causing the setup wizard to crash. Users who try to run the payroll setup wizard in QuickBooks receive an error notice with a lengthy code. The “QuickBooks Payroll Setup Error” can occur for several reasons. A common cause is incorrect or incomplete information entered during payroll setup, such as employee details, tax information, or payroll preferences. Issues with the QuickBooks software or outdated payroll tax tables can also trigger this error. To resolve the QuickBooks payroll setup error, users should review the report and identify the exception causing the problem. Our experts are just a call away to resolve the “QuickBooks Payroll Setup Problem.” For virtual assistance, contact us.

What is QuickBooks Payroll Setup Error?

QuickBooks Payroll Setup Error refers to issues encountered while setting up the payroll feature in QuickBooks. Various factors can cause this error, including incorrect settings, outdated software, internet access problems, and issues with the company file.

Common Steps to Fix These Issues:

1. Check and Modify Payroll Settings

2. Upgrade the Software

3. Ensure a Reliable Internet Connection

4. Contact QuickBooks Support if Necessary

 Common Error Codes

Here are some of the error codes you might encounter during QuickBooks payroll setup:

– 00000 38049

– 00002 71328

– 00002 20123

– 00000 17002

– 00000 88579

– 00000 38772

– 00000 97340

– 00000 88703

– 00000 40370

– 00000 99867

– 00000 34289

Error numbers can range from 00000 00001 to 00000 99999.

Quick Payroll Fix Guide

Cause: ReportHeader.xml file corruption causing data disruption 
Solution: Open QuickBooks, select “View Report,” and make the necessary adjustments to the ReportHeader.xml file to resolve the QuickBooks Payroll Setup issue.

Cause: Conflicting duplicate listings for a vendor 
Solution: Open the Vendor Center, select the problematic vendor, assign them a unique name, and save your changes to resolve the conflict.

Cause: Name duplication in the employee list causing entry errors and conflicting records 
Solution: To fix the issue, go to the Employee Center, select “All Employees,” and delete redundant employee listings.

Cause: Improperly spaced or formatted employee names causing verification errors 
Solution: Fix this by going to the Employee Center, removing any blank spaces from employee names, and ensuring the correct First and Last Names are entered in any blank boxes.

Cause: Unsupported font style causing errors in compilation and report generation 
Solution: To resolve this issue, modify the font settings in the Control Panel, provide the client with the proper font style, and follow the font installation instructions displayed on the Screen.

Cause: Invalid payroll item setup for local taxes led to calculation format incompatibility. Solution: To address the problem, generate an Employee Withholding report, remove and customize the tax elements, and then print or export the report to Excel.

Cause: Inaccurate payroll item listing leading to setup issues 
Solution: Select the Payroll Item Listing report, edit it by removing check marks from item sections, change the report’s status to Active, add filters, and then print or export the report to fix this issue.

Reasons for the QuickBooks Payroll Setup Error

The QuickBooks Payroll Setup Error can occur due to various reasons. Some common causes include:

1. Corrupted ReportHeader.xml File: This can disrupt the generation and display of essential setup information, preventing QuickBooks Payroll Setup from working correctly.

2. Conflicting Data Entries: Incorrect or redundant employee or vendor data entries can cause conflicts during the payroll setup.

3. Incorrect File Names: Using the wrong file name for vendors or employee lists can cause confusion and require clarification and correction during payroll setup.

4. Unsupported Characters or Formats: Names, timesheet entries, or other data containing special characters, unsupported characters, or inappropriate file formats can affect the setup procedure.

5. Data Integrity Issues: Missing or damaged records can impair the correct payroll settings in QuickBooks.

6. Invalid Local Tax Payroll Item Configuration: Improper configuration of the storage category map associated with local tax payroll items can prevent QuickBooks Payroll from operating correctly.

7. Errors in Payroll Item Listing Report: Incorrect payroll item listings can result in mistakes in the payroll item listing report, which can prevent QuickBooks Payroll Setup from functioning correctly.

How to Fix the QuickBooks Payroll Setup Error

To fix the QuickBooks Payroll Setup error, follow the steps below:

Appearance of Error: ‘Payroll Setup Error Code Format 00000 XXXXX’

If you see the error code ‘Payroll Setup Error Code 00000 XXXXX’ on your Screen, follow these steps:

1. Open QuickBooks.

2. Select “View Report” from the menu.

3. Create a new window that details every aspect of the unrecoverable error.

4. Double-click the ReportHeader.xml file name in the window list to open it.

5. Open Internet Explorer.

6. If the source isn’t available, locate the ReportHeader.xml file:

   – Open File Explorer.

   – Find the ReportHeader.xml file.

   – Right-click the ReportHeader.xml file.

   – Select “Open in a new window” from the drop-down menu.

7. This will open your file and start Internet Explorer.

8. Press CTRL + F to open the search function.

9. Search for the error code 0.

10. Reports will appear on your Screen with specific details about the error.

11. Make the necessary changes to fix the QuickBooks Payroll setup error.

Appearance of Error: ‘This Item Has Already Been Added’ on the Screen

If your Screen displays the message “This Item Has Already Been Added” in the Exception String 0 Statement, follow these steps:

1. Open QuickBooks.

2. Select the Vendor Center under the Vendors menu.

3. Find the identified vendor who is causing the issue. The vendor may be listed twice.

4. Assign a unique name to the vendor account:

   – Double-click on the vendor name.

   – Enter a new, unique name.

   – Save the changes.

Existence of ‘Duplicate Entry from Employee List’

The QuickBooks Payroll Setup Errors Code 00000 may appear when a duplicate name is in the employee list.

To remove duplicate names from the Employee Center, follow these steps:

1. Open QuickBooks.

2. Go to the top menu and select the Employees option.

3. Select the Employee Center.

4. Click View and choose All Employees from the drop-down box.

5. Right-click on the duplicate entries and select Delete Employee.

Appearance of Blank Characters in Employee Names in the Employee Center

Blank characters or spaces in employee names can appear in the “Print on Check As” section of the Employee Profile or as names with a space before them.

To fix this problem, follow these steps:

1. Select Employees from the top menu and click on the Employee Center.

2. Select All Employees from the View drop-down to include inactive employees.

3. Check for any unnecessary spaces in the employee names.

4. Manually fill in the blanks with the correct First and Last Names.

Appearance of Error: “Font Arial Does Not Support Style Regular” or “Email The Customer The Arial Font” on the Screen

If you see the error “Font Arial Does Not Support Style Regular” or “Email The Customer The Arial Font” on your Screen, it means your font is not supported.

To resolve this issue, follow these steps:

1. Go to Settings and select the Control Panel to alter the typefaces.

2. Drag and drop the font file into an email to send to the customer.

   – The font file will be sent as an attachment.

3. The customer should click the attachment and select Install, then follow the on-screen instructions.

Appearance of Error: “The Storage Category Map is Invalid for the Local Tax Payroll Item” on the Screen

To fix the issue “The Storage Category Map is Invalid for the Local Tax Payroll Item,” follow these steps:

1. Create an Employee Withholding Report:

   – Select Reports and then Employees & Payroll.

   – Click on Employee Withholding.

   – Remove the checkmarks from the current items in the Columns section.

   – Check the box next to Employee, then choose Customize Report

   – Include Local taxes (Local taxes 1 through Local taxes 12).

   – Go to the Filters menu, select Active Status, and click All.

   – Click OK to print or export the report to Excel.

2. Create a Payroll Item Listing Report:

   – Select Payroll Item Listing from the Reports menu.

   – Choose Customize Report.

   – Remove every checkmark from the item sections.

   – Switch to Active Status and select All.

   – Open the Filters tab and click OK.

   – Do not close the report before printing or exporting it to Excel.

3. Compare Reports and Correct Errors:

   – Compare the two reports to identify local taxes that must be categorized correctly.

   – Ensure every employee has the correct tax item and no duplicates.

   To correct an employee’s tax item:

     – Open the Employee Withholding report and double-click on an employee’s name to display the Edit Employee window.

     – Select the Payroll Info option and click the Taxes button.

     – Switch to the appropriate tab to erase the incorrect tax item, but do not enter any other changes.

     – Click OK to save the changes.

Practices to Avoid QuickBooks Payroll Setup Error

  1. Optimal Procedures for Avoiding QuickBooks Payroll Setup Challenges
  2. Ensure file naming accuracy and avoid duplicating employee entries.
  3. Steer clear of special characters in timesheets to minimize errors.
  4. Keep QuickBooks software up to date to resolve potential issues.
  5. Regularly review payroll settings and data for prompt issue resolution.
  6. Consistently backing up payroll data prevents loss and expedites error recovery. This practice reassures you that your data and payroll process are safe. Maintain detailed documentation of payroll setup procedures for future reference.


Navigating QuickBooks Payroll Setup Errors involves meticulous checks on configuration, employee/vendor entries, and file integrity. Timely updates, precise naming conventions, and meticulous tax item setup are crucial. Diligently addressing these aspects ensures a seamless and error-free payroll setup journey within QuickBooks.

We Advice Venture are here to support you. If you encounter any further challenges with your software and require professional assistance in accounting, bookkeeping, or accounting software-related matters, please don’t hesitate to get in touch with us.

You May Also Read–How To Fix QuickBooks Payroll shutting down issue?

What Triggers QuickBooks Payroll Setup Errors?

This issue can stem from various factors, often requiring assistance navigating payroll taxes. The primary culprits typically involve insufficient gross earnings on employees’ last payroll or surpassing the annual income threshold.

How do you rectify a QuickBooks Payroll Setup Error?

Navigate to “About QuickBooks” under the Help menu dropdown. Simultaneously press the Ctrl, Alt, and Y keys to proceed. Click Next to access the Employee Summary Information window. Then, select underpaid employees and double-click their names to review details. Finally, press OK to finalize changes within the software.

How to Tackle QuickBooks Payroll Setup Errors?

To address the “QuickBooks Payroll Setup Error,” users can take several measures. Firstly, ensure all payroll setup details are accurate, encompassing employee data, tax particulars, and preferences. Confirm usage of the latest QuickBooks version with updated payroll tax tables. If issues persist, the QuickBooks Payroll Setup Errors Tool can pinpoint and resolve setup discrepancies.

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