That's very low. That's $125 for what I assume is a 40 hour work week. That breaks down to about $3 an hour. Look for another job. Any contract you signed for those terms is illegal, so don't let your boss try to scare you if you quit. He'll get in more trouble than you if anyone sees that contract.
It depends on how many hours you work for that $500.
It depends. What are your hours?
If those are the figures then you are way under minimum wage.