moving to US via K1 but income will remain Canadian

[JoyG]

I am employed at a college as an academic and I plan to hold on to this for at least the next year because I have been granted a scholarly leave (paid) to do my doctoral program. After that I might even commute weekly to keep this job, depending on what other options I have and how much online work they'll give me.

I suppose I'll be a US resident for tax purposes. Is this going to create any problems for my employer? Do they need to do anything differently?

What do I need to know in terms of reporting this income - will some tax go to US or it will all be Canadian tax since it's Canadian income??

[nelsona]

You will continue to be taxed in Canada and province on this income, but only this income.
As a US resident you will report all world income to IRS (and state) including these wages. IRS will give you credit for Cdn and provincial tax (and EI and CPP). Your state probably doesn't give credit (only NY does to my knowledge), so you will likely end up paying Cdn fed tax + Cdn prov tax + US state tax + a little more to IRS if the tax credits don't match up.

Your employer, since they will now be paying a non-resident employee for work performed in Canada, will have to withhold tax (which shouldn't be too much of a difference, since they have to do this anyway for resident employees).