How to Fix QuickBooks Desktop Error 248?

QuickBooks Error 248 appears when users rebuild data or process payroll, signaling possible company file corruption. It disrupts payroll processing and backups, often showing data integrity warnings. Common causes include damaged company files, incorrect payroll settings, or database issues.

To fix this error, users should back up their company file, then run the Verify and Rebuild Data utilities. If the issue continues, updating QuickBooks and using the QuickBooks Tool Hub to repair the file may help. Proper payroll setup and regular backups reduce the risk of recurrence. Check below 7 methods to fix QuickBooks Desktop Error 248.

Method 1: Use QuickBooks Verify & Rebuild Data Utility

The QuickBooks Verify & Rebuild Data Utility identifies and fixes issues in the QuickBooks data file. Follow these steps:

1. Open QuickBooks and go to the File tab.
2. Select Utilities, then click Rebuild Data.
3. Wait for the tool to complete the process.
4. Follow the on-screen instructions and back up your company file.
5. Click OK after the backup finishes.
6. Run the Verify Data tool:
   • Go to File > Utilities > Verify Data.
7. When you see the message “QuickBooks detected no problem with your data”, the issue is fixed. 
8. Run the Rebuild Data tool again if errors remain.

Method 2: Add a New Item in QuickBooks

QuickBooks error 248 may occur during payroll processing due to overpayment of payroll taxes or wages. Follow these steps to fix the issue:

1. Open QuickBooks and go to the List section.
2. Click Payroll List, then select New Item.
3. Choose Customer Setup, then click Next.
4. Enter a name for the new item.
5. Select the correct account to link the item.
6. Set Tax Tracking Type to None, then click Next twice.
7. Select Neither, then click Next.
8. Enter the overpaid amount and click Finish.

Method 3: Adjust Employee Information

To correct withholding and fix QuickBooks error 248, follow these steps:

1. Open QuickBooks and go to the Employee menu.
2. Select Payroll Taxes and Liabilities.
3. Click Adjust Payroll Liabilities.
4. Enter the Date and Effective Date.
5. In the Adjustment section, choose Employee, then select the employee’s name.
6. Under Taxes and Liabilities, select the payroll item to adjust.
7. Enter a negative value to reduce the amount.
8. Click OK to save the changes.

Method 4: Manually File The W-2c And W-3c

Update W-2, 941, and 940 forms. Use QuickBooks Desktop’s printable W-2c and W-3c as a reference. Then, file W-2c and W-3c manually with the Social Security Administration:

1. Open QuickBooks and go to Employee > Payroll Center.
2. Click the File Forms tab.
3. Select Annual Form W-2c/W-3c – Tax Statement and Corrected Wage, then click Create Form.
4. Choose the employee, click OK, then select Review/Edit.
5. Review each page. Check the box if this is a W-2c (corrected W-2).
6. Fill in only the necessary corrections under Previously Reported and Correct Information.
7. Remove incorrect amounts by right-clicking and selecting Override.

Record Prior Tax Payments

Unpaid liabilities from the previous year require manual entry. Follow these steps to record them:

1. Open Help > About QuickBooks.
2. Press Ctrl + Shift + Y or Ctrl + Alt + Y to open Setup YTD Amount.
3. Click Next until you reach Enter Prior Payments.
4. Select Create Payment and enter previous payroll tax payments.
5. Click Accounts Affected to adjust the Chart of Accounts (COA).
6. Repeat for all payments. Click Done, then Finish.

Method 5: Install QuickBooks Tool Hub

1. Open the downloaded file (QuickBooksToolHub.exe).
2. Follow the on-screen instructions and accept the terms.
3. After installation, double-click the QuickBooks Tool Hub icon on your desktop.

Step 1: Run Quick Fix My File

1. Open QuickBooks Tool Hub and go to Company File Issues.
2. Select Quick Fix My File.
3. Click OK when QuickBooks launches.

Step 2: Run QuickBooks File Doctor

1. Open QuickBooks Tool Hub and select Company File Issues.
2. Click Run QuickBooks File Doctor (this may take a moment to open).
   • Search for QuickBooks Desktop File Doc and run it manually if it does not open automatically.
3. In QuickBooks File Doctor, select your company file from the dropdown.
   • Click Browse and locate the file if it is not listed.
4. Select Check Your Company File (middle option), then click Continue.
5. Enter your QuickBooks Admin credentials, then click Next.
6. After running the tool, use Verify and Rebuild Data to check for errors.
   • Rebuilding multiple times may be necessary if the error message changes.
   • Some data issues may require multiple rebuilds to fix.

Method 6: Delete a Paycheck in QuickBooks Desktop (QBDT)

Delete and recreate the paycheck if it is a regular check. Copy all paycheck details and manually re-enter the information. QuickBooks Error 248 may occur due to overpaying employees or payroll taxes.

1. Open QuickBooks and go to the Employees menu.
2. Select Payroll Center.
3. In Recent Payrolls, click the Net Pay amount to view paychecks.
4. Double-click a paycheck to open its details.
5. Click the Delete icon or press Ctrl + D.
6. Click OK in the Delete Transaction window to confirm.

Method 7: Restore a Backup of Your Company File

Restore the backup using Open or Restore Company in QuickBooks if one is available.

1. Open QuickBooks and go to the File menu.
2. Click Open or Restore Company.
3. Select Restore a Backup Copy, then click Next.
4. Locate the backup file (.qbb extension) and open it.

Note: Restoring an older backup removes any changes made after the backup was created. However, the restored file may not have the same issue.

What are the Prerequisites to Fix QuickBooks Desktop  Error 248?

1. Update QuickBooks to avoid compatibility issues.
2. Back up the company file before troubleshooting.
3. Check system requirements for QuickBooks.
4. Run QuickBooks as an administrator.
5. Ensure a stable internet connection.
6. Install QuickBooks Tool Hub for error fixes.
7. Verify user permissions for file access.

How to Identify QuickBooks Desktop Error 248?

• QuickBooks warns of company file issues.
• Backup attempts fail.
• Payroll stops or miscalculates.
• Verify detects issues; Rebuild fails.
• QuickBooks lags, freezes, or crashes.
• Missing data or incorrect balances.

How to Prevent QuickBooks Error 248?

1. Backup company files often.
2. Keep QuickBooks and tax tables current.
3.  Run these tools regularly.
4. Store files on a secure drive.
5. Remove old data to optimize files.
6. Restrict access to authorized users.
7. Close QuickBooks properly, use a UPS.

When Should You Seek Professional Help for QuickBooks Desktop Error 248?

Seek expert help if QuickBooks Error 248 persists after using Verify and Rebuild, updating QuickBooks, or restoring a backup. If payroll calculations are incorrect, backups fail, or QuickBooks crashes frequently, professional assistance is necessary. Severe file corruption or data loss may require a specialist to repair and recover files. Contact us if troubleshooting does not resolve the issue.