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In the tutorial, the user sets up a new employee named Erica Smith. They input her details, including social security number, date of birth (12/31/1997), marital status (married), citizenship (yes), and disability status (no). The user does not include her ethnicity and checks her military status. Erica's address is provided as 9425 Sunset Boulevard, Beverly Hills, California. They then move to the payroll section, selecting a monthly default but deciding to set up an hourly pay item for her instead. The user confirms that the regular pay structure looks correct and updates it accordingly.