"Annualization" refers to the requirement (except under specific circumstances) that a contribution made, and the credit thus taken against the prevailing wage, be at an amount equal to that which would be contributed for each hour on all work throughout a full year to pay for that benefit to the worker.  For instance, should an employee's health insurance premium each month equal $500 then the following "annualized" rate would apply on a per hour basis for allowable credit against the prevailing wage.  $500 times 12 Months = $6000.  $6000 divided by 2000 hours (one year of work with two weeks off) = $3 per hour allowable credit. 

As an enforcement concept, noncompliance with the rule regarding annualization constitutes a "job-vs-job kickback" as described in Analysis #3.