Why is our tax WTH invoice created at invoice validation when configuration is set to Payment?

Summary:

We recently changed our Tax Calculation Point and Tax Invoice Creation Point to the following: 

Calculation Point: Invoice 

Tax Invoice Creation Point: Payment. 

However, we received invoices with withholding after the change and the WTH invoices were created the same day as the invoices, not the payment date like we have configured. 

Content (required):

We updated both the Manage Taxes page and the Withholding Tax Options Page (I will attach screenshots). Is there a different page we need to update for the Withholding invoice to create at the time of payment instead of invoice validation? Thanks

Version (include the version you are using, if applicable):