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Caroline from Juniper Links Accounting demonstrates how to pay salaries using FreeAgent software. The software allows direct OTI submissions to HMRC, generates payslips, and manages payroll. Before paying salaries, ensure your company has a PAYE scheme set up. If not, watch Caroline's previous video on setting up a company PAYE scheme. Upon receiving PAYE details, there are two reference numbers needed for payment processing. Watch the tutorial to learn how to set up and process salaries efficiently.