I am a tax attorney and represent taxpayers from all 50-states in front of the IRS and State taxing authorities. 1099-G is not the correct form for your employer to use unless very specific circumstances exist.
Your employer may instead report on a Form 1099-MISC. However, it would benefit you to put the refunded money into a different tax-deferred vehicle such as a Traditional IRA for tax-year 2014.
If you would like assistance with accomplishing this, please let me know.
My website is http:firstlight-financial.com
Phone: (720) 282-5154
Fax: (720) 452-0613