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In this video tutorial, the creator demonstrates how to design a modern ID card template using Microsoft Word. Start by accessing the Layout menu, selecting "Size," and then "More Paper Sizes" to set dimensions of 2.125 inches in width and 3.385 inches in height, with 0.1-inch margins on all sides. Insert shapes, such as a right triangle, and format them by removing outlines and changing colors. Utilize text boxes for text, ensuring to remove the fill and outline, and adjust text color to white. Add drop shadows to text and incorporate a company logo. Finally, edit shapes and colors to achieve a polished look for the ID card.