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In this video tutorial, the creator demonstrates how to create a modern ID card template using Microsoft Word. Begin by accessing the Layout menu to set the card dimensions to 2.125 inches wide and 3.385 inches high, with 0.1-inch margins on all sides. Next, insert and rotate a right triangle shape, removing its outline and changing its color before sending it to the back. Continue by inserting additional shapes, adjusting their color and outline as needed. For the profile picture, use an oval shape and format it accordingly. Additionally, a text box is created with a white text color and drop shadow effects, followed by adding a company logo and final adjustments to the colors and shapes.