My employer pays R1800pm to an RA fund, why is it shown as code 3808 on IRP5 which is "employee's debt" and what does this mean, am I in debt to somebody? Interestingly these deductions are not specifically indicated on my payslip.
This code is used when an employer pays over an amount for their employee which is owing to someone else, it gets taken out of your after tax income and paid over. For example if you had arranged with your employer to pay your mortgage bond directly. It is ok to use this code if the RA is independent of your employer, but ask him if he takes the RA contributions into account when working out your PAYE?
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