Like any other creditor, tax authorities would like to get their dues as soon as possible. New York, for example, requires that every employer must file, within three days after the payroll period, a return and pay the tax withheld from its employees after each payroll period (in most cases, every two weeks) that causes the total of tax required to be withheld in excess of $700. In addition, New York requires an employer to file a quarterly return to report the compensation and the tax withheld. New York allows to remit withholding taxes that have not been remitted during the quarter, without penalties or interest, but only so long as such amount is not in excess of $700. So if you failed to withheld and pay the tax to New York, and the amount is in excess of $700, interest will be charged.
So to your question, YES you can pay the tax only once a year, but that amount will include a 9% interest (annually) computed from each month you failed to pay the tax, till the payment date. That’s an expensive loan, isn’t it?