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In this video tutorial, Caroline from Juniper Links Accounting explains how to pay salaries using FreeAgent software. The software allows users to submit RTI submissions directly to HMRC, generate payslips, and set up payment within the software. Before paying any salary, it is essential to ensure that the company has a PAYE scheme set up. If not, there is a link in the description for a tutorial on setting up a company PAYE scheme. Once the company has the PAYE details, there are two reference numbers required to process salary payments.