Thanks for visiting the Community, @MLom. As an insight, using QuickBooks Online Payroll Core, Premium, or Elite for the first time needs to meet all these criteria for Auto payroll to be eligible: 

• You have Full Service (available for most companies), Core, Premium, or Elite payroll
• All employees are either salaried or have default hours set.
• All employees are on a single pay schedule.
• Payroll setup is fully complete.
• First payroll has been run.

Otherwise, you’ll have to manually run payroll. Don't worry, QuickBooks Online will automatically calculate your taxes. 

For your reference, read through this article: Get ready to use Auto Payroll.

Looking forward to answering again in your next post. Have a great day. 

Resources and steps included in your response has been performed as I mentioned before posting my question, and it looks like all issues are caught up in QBO-Payroll. My client does not like running payroll manually. I try to keep my client happy and avoid he changes payroll provider for his business. Anyway, thank you for your time and consideration.

• You have Full Service (available for most companies), Core, Premium, or Elite payroll

YES

• All employees are either salaried or have default hours set.

YES

• All employees are on a single pay schedule.

YES

• Payroll setup is fully complete.

YES

• First payroll has been run.

YES

Still NOT working: