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In this tutorial, Caroline from Juniper Links Accounting demonstrates how to pay salaries using Free Agent software. The software allows for the submission of RTI submissions directly to HMRC, generates payslips, and helps set up payroll. Before paying any salary, it is necessary to have a PAYE scheme set up for the company. Setting up a PAYE scheme takes about three weeks, and once set up, there are two reference numbers required for processing payroll.