Employers and Paychex Insurance Agency have signed an agreement to jointly provide opportunity to acquire and pay for workers’ compensation insurance to small businesses processing payroll through the latter.

The new program will be effective from 2013 in all 31 states in US where Employers operates its business, in addition to the District of Columbia.

The company will offer services such as payroll processing and tax administration as well as employee pay services which include direct deposit, check signing, and Readychex.

Workers' compensation insurance is required by law in almost every state and assists businesses in protecting their employees valuable assets.

Headquartered in New York, Paychex provides payroll, human resource, and benefits outsourcing solutions for small- to medium-sized businesses.

Nevada-based Employers Holdings provides workers' compensation insurance and services for small businesses engaged in low-to-medium hazard industries.