Overwhelmed with HR Operations? Outsource with a PEO

I stumbled upon Administaff while talking with a small business client on Friday. It really turned me on to the whole idea of a PEO (Wikipedia Article). Essentially, as a small business owner you can contract a third party to be the employer of record for your employees. They manage your payroll, benefit packages, and other HR related functions you don't want to deal with. What a novel idea. I'm sure it's making a lot of people rich (Looks like 2006 was a good year). These are the win win relationships that make small businesses better. This is definitely something I'll consider when I'm looking to hire employees.

The only thing I couldn't find is how cost effective it is. I'm sure there's a significant cost, but the convenience of the whole relationship must make it worth your money.