Taking your questions one at a time:
1. Immediately in response to significant policy changes. In other words, the policies should be up to date at all times and not simply revised once a year–unless changes are marginal
2. I can’t really answer that question because I don’t know what you keep in the employee handbook and its relationship to the policies. If the handbook is a summary of policies, then, yes, it should be updated after significant changes to those policies occur.
3. Again, that depends on the function of the Handbook. Is it supposed to be comprehensive or just a highlights package? If the latter, you don’t need to throw in everything.
4. Same answer as above. What is the handbook, its mission and relationship to the policies?