Pay back the money you stole, reimburse him for his back check fees, and consider doing the counseling. I personally wouldn't go to the police and confess.
I'm not sure what you are asking. If you're being denied comp benefits I think you should consult a comp lawyer. If you just want to share your story with other injured workers you may wish to check this out.
Workers comp laws can change a lot from state to state. You can get a lot of info from other injured workers here. If you want somebody here to try to help I suggest identifying your state.
1. Call him and say "you're fired".
2. If he doesn't refund the money, sue him.
Does your contract say anything about when he is supposed to start or complete the job?
Yes.
Of course.
They may be paying their withholding taxes on a quarterly basis, and may be able to fix the accounting on their end such that they credit themselves for the money they withheld, or have their payroll service do that for them.