Yes, you can resolve the QuickBooks error PS038 without updating to the latest version, although it is highly recommended to do so. You can perform troubleshooting methods like sending payroll data, verifying and rebuilding the company file, downloading the updates with admin privileges, and many more. However, it is still advised to start by updating your QuickBooks Desktop app.

https://proadvisorsolutions.com/blog/quickbooks-error-ps038/