Cant set up correctly paypal single payment for 1 year subscription using membership plugin


I have been having a lot of trouble getting this working. Here is what I am trying to accomplish.

I have a blog that I want to charge people for 1 year of use. Once the year is up the subscription ends and is not auto renewed.

I got it working however when a user subscribes their "Subscription" and "Membership Levels" are not automatically updated. I have to go in and automatically add them myself.

Why is this not automatically happening? I must not have the settings setup correctly.

Here is a screenshot of my subscription settings.