Embezzlement or Contract

My question involves criminal law for the state of: WI

I've been working for a business for 3 year's as an independent contractor (under contract) to provide off site office support (e.i. book keeping, office manger, payroll, etc.). A month ago, the owner reviewed the books as normal and suddenly started accusing me of embezzlement.

The contract I have with him states that I have access and authorization to and the business account for the purpose paying bills and salaries (including my own). My salary per the contract was to be 10% of a customers invoice and automatically debited from the account. I made salary payments to myself from the business account equaling the 10% once the customer paid for services as agreed to in the contract.

I no longer take care of book keeping but still handle office operations for special accounts and invoicing of these special accounts. He won't let me leave the company completely. All access to the account has been disabled, which is fine with me, but he is not paying me now, stating that I owe him.

He has not filed charges as of yet. Is this embezzlement or was I within my legal rights under the contract to make the salary payments?

Wow, something doesn't smell right here. Was this a written contract, outlining all of the terms? Did you keep your own detailed records of invoices rec'd vs salary paid (to cya)? Why would your boss want you to continue employment with the company if he is under the assumption that you were doing something illegal? On the flip side, why would you want to continue working for him if he isn't paying you? If he reviews the books on a regular basis, is this something that he's saying just happened? So many questions..... I'm interested in seeing how this one plays out, because there are so many in the workforce today that could easily fall into this same situation.

This was a very detailed written contract and I did keep detailed records because I am considered self-employed and need to justify my income. I don't know why he won't let me leave the company. Until recently he kept making promises of partnership in the company over the last three years. Now I want out and has far away as I can get. He tells me that this has been happening for some time now but is just now bring it to my attention. And, he won't tell me how much I supposedly took from him.

I'm not an atty, BUT if this were me, I'd:

Pull out that contract, make a copy ( i like a physical copy to make notes on) and highlight the appropriate clauses. I'd make a copy of all of my records for the past three years, including the tax returns, and compare them with the 1099's that I received. After verifying all information was correct (or not), I would confront him with my version vs his version. If they match, he's pulling the wool over your eyes, because HE is responsible for the 1099's. Perhaps you can get HIM for breach of contract?? It would at least give you a way to stop working for him if he's playing games.