Can hiring a PEO pay for itself?
With a PEO's ability to negotiate better terms on benefits and insurance, are those savings passed on to the small business? If so, would it be reasonable to assume those passed on savings would at least cover the cost of the PEO service?
What is a likely net effect?
I would recommend taking a look at this Buyers Guide on Business.com. It should answer most of your questions. Then you can fill out the questionnaire on the page to have our vendor partners provide you with information for free.
Good luck. We just moved to one of these PEO's. It was very good for our business and our employees seem to be very happy. I would be interested in your findings, but I hope these two items help.