Which wages are not subject to the Federal Unemployment tax paid by the employer?

Wages paid to a child under the age of 21 employed by a parent are exempt from the Federal Unemployment Tax Act (FUTA) requirements. This exemption is established to reduce the financial burden on family-owned businesses and to encourage familial employment practices. By not taxing these wages, the government acknowledges the unique relationship between parents and their children in the context of employment and foster employment opportunities within families.

Other wage categories such as wages for temporary workers, wages above a certain threshold, and wages for part-time employment typically fall under the provisions of FUTA and are subject to taxation, as they do not enjoy similar exemptions. Thus, the exception for wages paid to a child under 21 makes it the correct choice in this scenario.