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There is a probationary period of up to 90 days. The cash sign on bonus will be paid out at $1,250 after successful completion of the probationary period and six months of employment (a total of six months), followed by the $1,250 balance after one year of employment.
Yes, the $2,500 (paid in two $1,250 installments) is considered income and will be taxed as such.