R700 code reported under 3833 was not taxed. Anyone else have this issue? NBCRFLI employees

We are NBRCFLI and our employees are very unhappy because SARS is saying the code was not taxed and now want the money. I have gone thru the payroll template and seen that on payroll the code was not taxed and was shown as for information only. Why is this? We run our updates and legislative release, we trust Pastel to ensure it is right. Now I have employees who want to strike because we worked out their tax wrong.

I need to be able to give them a reason. Even the article I found on the Pastel site when they set up the code says it was set up as non taxable.