Convenient Methods to Tackle QuickBooks Error Code 40001

QuickBooks error code 40001

Payroll users can use the direct deposit feature in QuickBooks to pay their employees. But sometimes, issues can arise while updating the information in payroll, which can prevent users from running the direct deposit feature. In such a scenario, you might get the QuickBooks error 40001 on your screen. This error code can arise due to issues with the company realm ID, among other reasons. In this article, we will help you eliminate the QuickBooks error code 40001 with some easy solutions.

If you are unable to perform the steps or resolve the error code on your own, you can reach out to us at +1-855-948-3646 to get assistance from our team of QB professionals.

Main Triggers for the QuickBooks Desktop Error 40001

You might be encountering the QuickBooks error message 40001 due to the following common reasons –

  • You need to run QuickBooks as an admin while using the payroll feature, and if you are not, it can trigger the 40001 error.
  • The QuickBooks company file might be damaged, missing, corrupted, or not running correctly in the system.
  • There are some issues while establishing a connection between QB and the server, and the company realm ID might be incorrect.
  • Your QuickBooks Desktop or the payroll tax tables might have become outdated or obsolete.
  • You have not set Internet Explorer to be your default browser for QuickBooks, which is preventing the user from running payroll.

You may also like to read:- Why I am getting QuickBooks error 15227

Reliable Methods to Terminate the QuickBooks Payroll Error 40001

You can easily address the QuickBooks direct deposit error 40001 by using the methods provided below –

Solution 1 – Update QuickBooks and Install the Recent Payroll Updates from the Employees Menu

You need to ensure that the application and payroll function is correctly updated to get rid of the QB error code 40001.

  1. Run QuickBooks Desktop as an administrator and go to the Help tab to select the Update
  2. QuickBooks Desktop option, and access the Update Now tab.
  3. Click the Get Updates option, and once the update download process completes, restart
  4. QuickBooks and select the Install Updates option.
  5. Go to the Employees tab to select the Get Payroll Updates option from the drop-down menu and click on Download Latest Updates.
  6. Once QuickBooks Desktop and payroll are successfully installed on your system, activate direct deposit to check if error 40001 has been rectified.

Solution 2 – Repair the Company File Corruption by Running the Verify/Rebuild Tool

You might be getting direct deposit issues due to damage in the company file, which can be fixed by running the verify/rebuild tool.

  1. Run QuickBooks Desktop and go to the File tab to find the Utilities drop-down menu, and click the Utilities option.
  2. Select the Verify Data option and verify the data for corruption, post which QuickBooks will prompt you to repair it.
  3. Next, click the Rebuild Data option, and once the data repair completes, check the status of the 40001 error.


QuickBooks error code 40001 can be easily dismissed by using the solutions provided above. If the error code remains unresolved, you can reach out to us at +1-855-948-3646 to get assistance from our team of QB experts.

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