Most of this is unnecessary filter.

From what I gather, your boss agreed to pay you $15 an hour, no formal contract. His method of paying you was to periodically send you $500, with no input from you as to how many hours worked and what exactly he owed you.

He got ahead on your pay, you spent the money, worked some of it off, and now want to quit but you owing him money. He's threatened to sue you for $1000 or something, it sounds like. You had some argument that seemed pretty irrelevant, but depending on your questions, it might matter.

What are your questions?

Do you want to know what to do if he sues you? Do you want to know if you have grounds to sue him or if he did anything you can send to the IRS or your state's department of labor?