Need a plan to pay employee's insurance premium?

[Guest KVD]

This is a small company with 7 employees. They do not have a group health plan. They want to offer to pay the premium for any employee that has an individual plan. They would pay the premium directly to the insurer upon proof of enrollment.

My question is, in order for this benefit to be non-taxable to the employee (and deductible to the employer), does this company have to have a Section 125 plan in place?