Any help on this?

The DE231EB (State guideline) says "Employer contributions for benefits excludable from gross income." are not subject but "Employer contributions into a cafeteria plan for a health savings account." are subject.  
 
The problem is, there is no way for the program to know which user Deductions might be 125 plan as designated in the first section as opposed to the second section or other state tax exempt deductions such as 401k.   The only way I can think of is to prompt for which user defined deductions in fact are considered 125 plans not subject to be included in Gross Wages, similar to the way the W-2 asks for retirement/401k deductions.  
 
Unless you have a better idea, that is what we will do.

I just was told by my payroll dept head that she has had a conversation with a California State Tax person concerning the DE-6 and the way that Evo does it is correct- the way we had been filing it using Quickbooks for the previous 7-8 years is incorrect.  The subject tax is the total gross income amount with nothing subtracted out.  Score one for EvoERP!
Lynn, I hope your programmers haven't spent too much time on this.....  very sorry.