I think I have an answer for you problem.
First close your quickbooks
On the bottom of your desktop, click the file folder.
If you are on a network, in the lefthand column look for the location of the server or whereever quickbooks was originally installed.
If you are on a single pc, click on "OS C:" or whatever designates your computer.
Once you have done that...in the upper right corner, there is a search box.
type "paysub" in the search box.
If your set up is different you will need to search different locations until you find the "paysub" file.
When it appears in the search results, right click on it and click "rename"
You can rename it "paysub.old"
after you have done this open your quickbooks again.
Go to payroll and do the update
This should resolve your issue.