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In this tutorial, Caroline from Juniper Links Accounting demonstrates how to pay salaries using FreeAgent software. The software allows users to submit OTI submissions directly to HMRC, generate payslips, and set up payment within the software. Before paying any salary, users must ensure their company has a PAYE scheme set up. It is important to have the necessary payroll information, and there are two reference numbers required for this process. Setting up a company PAYE scheme is straightforward and takes approximately three weeks for payroll information to arrive.