Thank you for your prompt response. I appreciate you following the steps outlined in this thread, @ALG8983. Allow me to offer additional troubleshooting measures to resolve the PSO32 error and install the payroll update.

To ensure a successful installation of the payroll update and fix error PS032 in QuickBooks Desktop, it is recommended to disable the User Account Control (UAC) and any anti-virus software. Then, ensure that QuickBooks is run as an administrator by right-clicking on the application. 

To temporarily disable UAC for the current session only, follow these steps:

1. Close QuickBooks.
2. Right-click on the QuickBooks icon in the desktop window.
3. You can also go to Start > All Programs and right-click on the QuickBooks icon.
4. Select Run as administrator.
5. A pop-up window will appear asking if you will allow the program to make changes to the computer select Yes.
6. The program will open like normal. UAC controls for this session have been disabled temporarily. 
7. If you close out the window and open IE again like normal, UAC controls will default to active.

For more details about turning on/off UAC, follow this article: Change User Account Control (UAC) in Windows.

Then, you may perform the updates again, please follow the steps below:

1. Go to Help and click Update QuickBooks Desktop.
2. From the Update Now tab, check the Reset Update tick box.
3. Click the Get Updates button. On the pop-up, select OK.

Once the reset update is done, please restart your QuickBooks Desktop. When you reopen it and the QuickBooks Update Service appears, click Install Now. Then, let's update now your tax table:

1. Go to the Employees menu and select Get Payroll Updates.
2. Make sure that the Download Entire Update is checked.
3. Click Download Latest Update.

For detailed information on the steps above, see these links:

• Get the latest payroll news and updates in QuickBooks Desktop Payroll
• Get the latest tax table update in QuickBooks Desktop Payroll

However, if the issue persists after trying the steps above, I'd suggest contacting our Customer Support Team. They have tools such as screen-sharing (remote access) that can pull up your account in a secure environment and check the cause of this odd behavior. They can also try other troubleshooting steps if necessary. To reach them, see this article: Contact Payroll Support.

I'm also adding these articles that tackle processing paychecks and running payroll reports in QBDT:

• Create and run your payroll
• Run payroll reports

Keep us updated by leaving a reply to this thread. The Community is always ready to back you up for further help with payroll or QuickBooks in general. Take care.