PROVIDENCE, R.I. — State employee tax refunds are on hold as Rhode Island officials await clearance before approving payments tied to the state’s recent W-2 tax form error.
The delay follows a widespread issue earlier this year when the Rhode Island Department of Administration sent incorrect W-2 forms to 22,000 state workers. Employees reported the forms incorrectly listed their employer as the “State of Rhode Island Umbrella Company.”
After the errors were discovered, state officials said they would work to resolve the issue and provide W-2C forms to fix the mistake. Those new forms were mailed February 25, however, the envelopes they were sent out in allowed employees’ Social Security numbers to be visible through the paper.
Officials have not provided a timeline for when the approval to issue refunds is expected to come. When employees reach out to ask questions about their refunds, they are given a vague response.
Until then, the refunds for affected state employees remain on hold.
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