A proper way to troubleshoot QuickBooks Error 40001
                     Feasible strategies to eliminate 
QuickBooks Error 40001
QuickBooks is reliable software developed by Inuit that provides relentless 
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 the 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 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.
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
Everyday 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. “Various tools are 
available that we designed according to potential issues that may 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 the software 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 fully repairing the company file, you should click on the Program 
Problems menu.
6. Select Quick fix my program from the options list, and wait until the 
software is repaired.
7. Retry using direct deposit for the payroll.
If the error still persists and reappears in the software, you should 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 lousy internet 
connection while executing online tasks like downloading bank 
transactions, sending emails, downloading updates, or sending the 
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 3Mbps or minimum 1.5Mbps to run 
smoothly on a computer. Low internet speed than that 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 
integrating with the software to access the internet is incompatible and 
fails to perform the software functions. You are advised to use the inbuilt 
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, 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 in case your subscription to the payroll 
service has expired. You are no longer an authorized user for using 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.
We will remove the direct deposit issue, and you won’t face problems 
working on the software anymore
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.