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In this video tutorial on Plan Day, viewers learn how to set up contracts for electronic signatures. To begin, users should navigate to Settings > People > Contract Setup to create a contract template by naming it and selecting the applicable employee group. Contracts can be categorized and there are two main types: "insert text," which allows direct typing or pasting text from Word, utilizing merge fields to automatically pull employee information from profiles. However, using this method may result in loss of original document formatting. Additionally, users can import a logo to enhance their contracts, making the upload method preferable for contract setup.