OK for Employer to Pay Employee's Spouse's Premiums?

First, thank you all for considering my question and offering your replies. I work in MA at a very small <10 employees firm. They have been offering $X per month in pretax gross-up of our income when we show them an insurance bill. So, in effect, we have company-paid coverage, but all staff must get their own policies.

One of our staff has asked that the our company pay him the difference between one person covered versus two covered in his spouse's company insurance plan. (Make sense? If her coverage were $500, and both are $800 -- he is asking for $300 per month.) From my days of owning
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