Which action can prevent an employer from receiving a full credit against the Federal Unemployment Tax?

The action that can prevent an employer from receiving a full credit against the Federal Unemployment Tax is related to the timely payment of taxes. When an employer does not make the required unemployment tax payments by the deadline, it can result in the loss of a portion of the eligibility for the tax credit. The Federal Unemployment Tax Act (FUTA) allows employers to receive a credit for state unemployment taxes paid, which reduces their federal tax liability. However, if employers do not comply with deadlines for payments, they risk losing all or part of that credit.

In this context, fulfilling tax obligations punctually is essential for maintaining eligibility for the full tax credit. Other actions, such as not filing tax returns or changing the business name, may also have implications but do not directly lead to the loss of the unemployment tax credit in the same manner as late payments can. Contracting out services might change how an employer handles their workforce but does not directly affect the credit against the Federal Unemployment Tax unless it leads to non-compliance in tax handling.