Yes, you should report foreign employment income. Your American employer should provide you with a W-2, which is the equivalent of a T4 slip. You will have to convert the money into Canadian funds using the Bank of Canada exchange rate that was in effect the day you received the funds. If the amount was paid at various times in the year, you can use the annual average rate.
You can report foreign employment income on TurboTax by looking at the navigation menu on the left side then clicking T-Slips > Foreign Income > Enter New Foreign Income for <Your Name>. You can enter all of your information on the Foreign Slip.
For more information regarding foreign employment income click here.
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