When you remove a user from your account on the annual plan the remainder of their subscription will be applied to your account as a credit. This credit will then be applied to your next charge as a discount.
These charges include adding any new users in the future or when your annual subscription renews.
For example, if you remove a user with 8 months left on his annual subscription a credit of $184 (8 months * $23) will be applied to your account. This credit will be applied when you add a new user in the future or when you renew your annual subscription.