Feasible strategies to eliminate QB Error 40001

QuickBooks is a reliable software developed by Intuit that provides robust accounting to small businesses around the world. The software also helps to create tax forms, E-files and conduct the employee payroll following the tax table set by the government. The payroll is a subscription-based software service that allows employers to send wages directly to the employee’s bank account. But as we all know, none of the software is immune to random internal issues. Similarly, QuickBooks Error 40001 causes problems for users while activating the direct deposit. If you are also a victim of this error, you are in the right place to learn about the conditions that set off this error and the applicable countermeasures to resolve it.

If the troubleshooting procedure seems complex, give a call at 1.855.738.2784 to let a support team of QB professionals handle this issue.

About this error

This is an error related to the payroll service in QuickBooks. We all know the software provides many payment methods for sending the payroll. You’ll most likely encounter it when you attempt to activate the direct deposit for depositing the employee wages directly to their bank accounts. The software will develop an error instantly, and you’ll be forbidden from accessing your payroll data or selecting direct deposit as a mode of payment for releasing the salaries. You’ll see error codes on your screen whenever you attempt to activate or configure the settings for direct deposit in the software. QuickBooks can also crash after displaying the error message, which can be prevented by taking appropriate actions to resolve the payroll error.

Also Recommended: What is Error Code 176 in QuickBooks?

Potential Triggers

You might struggle using direct deposit for the payroll due to the following conditions on your PC-

1. QuickBooks will develop this error in the event that the latest payroll tax table update hasn’t been installed in the software.
2. A damaged company file can also cause this error when the software tries to access it for tracking financial transactions.
3. Network issues on your system can cause the connection to the Intuit server to lapse, which will eventually lead to the occurrence of this error.
4. The web browser you use to access the Internet isn’t compatible with QuickBooks, and the software can’t integrate with it to access the Internet.
5. The Internet speed offered by the network connection on your system is too low, and the payroll update file incurs damage during the download due to breaks in the connection.
6. You don’t have an active subscription to the payroll service, or the servers fail to authenticate you as an authorized user for using the payroll service because the recent service renewal you made hasn’t been validated.

Methods to fix

We have compiled a list of techniques simplified into steps that you can execute to rectify this QuickBooks error-

Solution 1- Download and install the latest payroll tax table update in your QuickBooks

QuickBooks can develop a number of errors due to missing updates of the software and payroll service. A new update fixes the existing glitches in the software and enhances its compatibility to be efficient while running on a new OS version or the latest hardware. Payroll service updates are also crucial for the deduction of tax amounts from employee salaries in accordance with the latest tax table released by the government. You can go to the Downloads & updates page on the QuickBooks website and download the payroll updates from there after selecting your country, QB product, and its version (year). For your convenience, the software also allows you to set up automatic updates, or you can manually download the updates by following these steps-

1. Restart your system using the Windows button and sign in as an Admin user to your QuickBooks.
2. Click on the Help option available in the upper-right corner of the software window.
3. Single-click the Update QuickBooks Desktop option mentioned in the drop-down list.
4. Navigate to the Update now tab and click Mark all.
5. Tick the Reset Update checkbox to remove the updates you previously downloaded, and finally, tap Get updates to download the update file.
6. Reopen QuickBooks after downloading the update file and click Yes when the software prompts a confirmation message to install the updates.
7. Try sending the payroll using direct deposit again after installing the update.

If the software can’t perform the action after the update, proceed to the next solution.

Solution 2- Install the QuickBooks Tool Hub on your PC to repair the software issues

Every day, issues are common in QuickBooks, like any other software. Intuit developed the QuickBooks Tool Hub to help users deal with such problems whenever they encounter them while utilizing the software. There are various tools available that are designed according to the potential issues that can develop in the company file, network, or the software itself. The tool hub helps diagnose the issues and fix them automatically to prevent them from escalating. The proper way to install and use the QuickBooks tool hub is mentioned below-

1. Use a web browser to visit the official QuickBooks website.
2. Go to the QuickBooks tool hub download page and select the QB product you use.
3. Download the newest released version (1.6.0.2) of the QB tool hub.
4. Double-click on the downloaded QuickBooksToolhub.exe file and follow the instructions to install it on your computer.

Once the Tool hub is installed on your PC, let’s use it to repair your company and fix the software that might cause it to malfunction while activating the direct deposit.

1. Go to the Company file issues menu located at the top of the tool hub window.
2. Tap the Run QuickBooks Doctor Tool option present in the list.
3. Select your company file from the pre-available list or locate it manually after tapping Browse.
4. Select the Check your file option and fill in your QB Admin password to repair your data file.
5. After the company file is fully repaired, click on the Program Problems menu.
6. Single-click Quick Fix my program in the options list and wait till the software is repaired.
7. Retry using direct deposit for the payroll.

If the error is still not fixed and reappears in the software, follow the next solution.

Solution 3- Check the factors that can affect the software’s connection to the internet

Internet Speed- QuickBooks may face problems due to a slow internet connection while executing online tasks like downloading bank transactions, sending emails, downloading updates, or sending payroll. An unstable internet connection or low internet speed will introduce lapses in the connection to the servers and damage the files during download. You must check the current internet speed on your system by running a test as demonstrated below-

1. Go to Google and type ‘Internet speed test’ in the search bar.
2. Hit Enter or click on Google Search.
3. Use the top link in the search results to run the Internet speed test.
4. Wait until the test ends and note down the internet speed mentioned in the results.

QuickBooks requires an average of 3 Mbps or a minimum of 1.5 Mbps to run smoothly on a computer. A low internet speed can lead to several issues. If your service provider doesn’t provide adequate speed, you must switch to a wired connection or a different service provider.

Web Browser- QuickBooks can also develop issues if the web browser used to integrate with the software to access the internet is incompatible and fails to perform the software functions. You are advised to use the built-in default browsers of your OS. Change your default web browser using the steps below-

1. Open the Default apps window using the search panel or the Control Panel menu.
2. Go to the Web Browser option and select Microsoft Edge/Internet Explorer as the default browser for your Windows. (Google Chrome & Mozilla Firefox are also supported)
3. Open the browser you selected and press CTRL + Shift + Delete to go to your browser history menu. (Keyboard shortcuts may vary for different browsers.)
4. Mark the checkbox for temporary files, cache, and cookies, and click on Clear Data to erase them from the browser.
5. Try activating the direct deposit.

If the software fails again, try the next method.

Solution 4- Ensure you have an active subscription to the payroll service on your QuickBooks

You can also come across this issue if your subscription to the payroll service has expired, and you are no longer an authorized user of the service. If you renewed the service recently, try reactivating it by following the steps below-

1. Go to the Employees option in your QuickBooks and tap My Payroll service.
2. Click on the Account/Billing info option and sign in to the account page using your credentials.
3. The Status beside your service name should be highlighted as Active.
4. If it says Cancelled, click on the Resubscribe option below it and follow the directions to reactivate your service.
5. Activate the direct deposit while sending the payroll again.

The direct deposit issue will be removed, and you’ll no longer face problems working on the software.

Winding Up!

The occurrence of QuickBooks Error 40001 while activating the direct deposit is explained in detail. You acknowledged the potential causes that can encourage the error and viable methods that can be applied to eliminate it from the PC. We hope you now have a basic understanding of the error and that you fixed the issue from your QuickBooks by executing the methods.

If you need clarification on any remaining queries, converse directly with a QB expert available for your help at 1.855.738.2784.