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In this tutorial, Caroline from the Juniper Links Accounting channel demonstrates how to pay salaries using FreeAgent software. The software allows users to submit RTI submissions directly to HMRC, generate payslips, and set up payroll within the system. Before paying any salary, ensure your company has a PAYE scheme set up with two reference numbers. For a step-by-step guide on setting up a company PAYE scheme, check out the link in the video description.