The Pay Frequency on the Pay Group provides the number of Pay Periods for the of earnings so that taxes can be calculated.

• If Weekly, you have 52 pay periods in a calendar year
• If Bi-Weekly, you have 26 pay periods in a calendar year
• If Semi-Monthly, you have 24 pay periods in a calendar year
• If Monthly, you have 12 pay periods in a calendar year
• If Semi-Annually, you have 2 pay periods in a calendar year
• If Annually, you have 1 pay period in a calendar year

When taxes annualize the earnings, the Subject to amount is multiplied by the number of Pay Periods then calculates the annual tax amount. The annual tax amount is then divided by the Pay Periods to determine the check tax amount.

See article 116772 "DocLink: Where can I find an example of how tax tables calculate?" for an example of using the weekly Pay Frequency with a Tax table.

See article 64207 "DocLink: How Does Payroll calculate taxes?" to see what taxes use annualization while calculating.

DocLink: Where can I find an example of how tax tables calculate?
DocLink: How Does Payroll calculate taxes?