deduction for HSA on CA employer tax return

For federal purposes individuals can take a deduction for HSA contributions on their 1040, but the deduction is not allowed for CA. I was wondering what happens on the employer's tax return for matching contributions such as federal 1120, CA 100. I assume that for federal they can deduct the cost, but for state they can not (so there will be adjustment -- positive income). ==============There will be a deduction as taxable compensation. On a W-2, state wages will not equal federal wages for income purposes if the HSA contribution is considered pre-tax for federal purposes.