When I looked at my payment settings last month, I was pretty sure that the annual payment would be debited from the business's checking account on July 7. Instead, the amount for a monthly payment was debited instead. I immediately went in and set up the payment for the full year, but it was not what I expected to have to do. It's not a huge deal to pay the full amount for one month (different from how things worked last year when I was able to update the payment to add on the additional amount for an annual payment). But your description of the billing settings is not at all clear about what will happen at the end of the annual period.
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