Rhode Island’s challenged new payroll system for state employees is facing another setback. Recently, the W-2 tax forms sent to employees had several errors, including problems with state names and numbers.
As a result, the state will be distributing corrected W-2 forms. There’s an acknowledgment that these forms were mistakenly issued under the Rhode Island Umbrella Corporation. Authorities understand the urgency of this situation and are committed to getting the updated forms out quickly. They plan to reach out to employees once the new W-2s are ready.
Michael McDonald, president of Council 94—the largest employee union in the state—expressed hope that correcting this issue will be a priority for the state. He mentioned the state seems to be dealing with a “mathematical error” in their system.
McDonald stressed the importance of employees being able to file their taxes without complications. The federal government mandates that employers provide W-2 forms by January 31 each year, and any delays can lead to potential penalties.
The Department of Administration has not yet commented on the situation as of Tuesday.
In a letter sent to Administrator Jonathan Woomer, Governor Dan McKee instructed him to look into the W-2 issue, specify when new ones will be sent, and offer guidance to employees on how to proceed in the meantime.
“When errors of this scale occur, especially regarding something as critical as tax reporting, it erodes trust and shows a need for better quality control,” the governor remarked.
This is actually the second letter McKee has sent to Woomer in recent weeks addressing payroll system problems. Complaints have been increasing since the rollout of a new payroll system developed by state-run Workday in early December.
In response to ongoing issues, state employee unions, including Council 94, called for further action, pointing out that many employees are missing overtime and holiday pay. The following week, McKee issued a strongly worded letter to his administration urging more decisive action to remedy the situation.
“Our employees deserve better,” he stated, noting that the current circumstances call for increased urgency, coordination, and escalation.
In his directive, McKee told Woomer to quickly stabilize the system, prevent additional disruption, and restore trust in the payroll operations. He also asked for more resources to be dedicated to addressing the issues and for weekly meetings with affected unions.
Two days later, Woomer replied to McKee, acknowledging the difficulties presented by outdated systems and complicated HR and payroll processes.
In a letter dated January 16, he assured the governor that the state and Accenture—who is assisting with the transition to the new Workday system—are working closely to address these challenges and bring in more expertise for the project.
Woomer emphasized that his team is treating this situation with urgency and is dedicated to resolving issues impacting employee pay as quickly as possible.
