I do appreciate all of your referencing in this post and I know where to input in Lacerte but the California balance sheet still does not balance and it's off by exactly the ERC. 

Can you plug some numbers in a test federal and california S corp tax return and also input ERC and let me know if your CA balance sheet balances?

ERC is not tax exempt income, it is a reduction of wage expense.  Not semantics as their are input areas for these items.

Federal net income is increased because wage deduction is reduced by ERC.

California net income is less because ERC does not reduce wage deduction.