H1B, H4 Visa

Hi,

I attended Visa interview on 10th Dec 2015 at Chennai Consulate.

Below are the questions asked by VO.
1. Is this is your fresh H1B
Answered
2. Who is your petitioner
Answered
3. How you got to know about them
Answered
4. What is your Job
Answered
5. What is your roles and responsibilities
Answered
6. Will you work at Client location
i said its in house project
7. what is your annual Salary
Answered
8. What is your qualification
Answered

VO asked all my documents (I-129, 797 B, LCA, etc). he asked me to wait. i waited almost 2 hours.
The same VO called me and issued 221g Blue slip saying they need additional documents from the Petitioner/Employer. Also he returned my Passport back.
Below are the 2 documents they marked in 221G Blue slip.

1. Wage Report
2. Notarlized list of all employees with their names, job roles, Start and end date of their employment etc

I spoke to my Employer and explain the situation. He gave me two option to solve this issue. I need to choose any one of the option from the below now.

1. Employer can provide the additional document, but employer says not sure if consulate still ask other additional forms. he also said since VO gave my passport back is not a good sign.
2. Cancel the existing application and apply for the Visa with new application with the same petition after 2 months

I am totally confused now with the above 2 options provided by Employer. Can any one provide the suggestion on this please.