The message is out of date and refers to steps that are available only in QuickBooks of yesteryear.

Many users are getting the message likely because of a change in the payment schedule rules for one or more jurisdictions included in a recent update. For example, a payment frequency may have been eliminated or the meaning of the frequencies changed.

The correct steps are:

In the payroll center on the Pay Liabilities tab,

1) Click Manage Payment Methods in the Other Activities section near the bottom of the center.

Payroll Setup will launch.

2) Click Schedule Payments.

One or more of the existing scheduled payments on the resulting list may show a flag that there is something wrong. 

3) Edit that payment and fix whatever is flagged as an issue.

It'll look like this when you follow the steps above: