With flat economic growth expected for some time to come, our Steve Ference spoke with a small business owner to find out what the real cost is for hiring and creating jobs in this economy - and what some businesses are saying is holding them back.

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ALBANY, N.Y. -- Chris' Coffee Service began delivering to businesses 30 years ago out of owner Chris Nachtrieb's El Camino, but Nachtrieb said, "We employ 30 employees right now."

Like many small business owners, Nachtrieb said he's done everything right. He has a focus on the bottom line, even an energy-efficient warehouse, but, he said, "New York State in general is tough because if you do get to a point where you're making any profit, the amount you get taxed, the corporate taxes are extremely high. The fuel is higher than most states because of the New York State taxes added on."

The real cost of running a business and paying employees is often far higher than many might realize - a key reason why some businesses may still be hesitant to hire.

"When employees say, I get 7.62 percent taken out in Social Security, well, as an employer I have to match that. On top of that. In addition, corporate tax rates are around 41 percent between state and corporate," Nachtrieb said.

And Nachtrieb points out that one of the biggest jolts to the bottom line in the business is simply all the health care costs.

"Health insurance is something that I used to provide years ago at 100 percent. But it used to be $2,500, $2,000, $1,800 for a full family plan. Now it's $12,000," he said.

There are plenty of variables, but the bean counters say a good rule of thumb is that employers pay about 20 percent more than an employee's gross salary for taxes and benefits, meaning their cost to give you $50,000 is probably more like $60,000 or $65,000.

Michael Moran, spokesman for the New York State Business Council, said, "They've been hit hard. The vast majority have seen employment decline or at best stay level. They've seen their revenues decline or at best stay level, and they don't see that changing in the next six months. But when we asked them about the next 12 to 18 months, they're surprisingly optimistic."

Owners may be hopeful for a recovery, but they are bitter about the increasing taxes and regulations slowing them down according to the New York Business Council's latest survey.

Moran said, "When asked if you're satisfied with the way state government is operating, 87 percent say no. The rest are somewhat dissatisfied. No one is satisfied."

Nachtrieb summed it up saying, "The cost of doing business makes the cost of everything else associated with it go up."

It just may be the story of the daily grind faced by small businesses in New York - and across the country.