First you need to choose which shape you would like to use. Then set that layer to cut.

I use default basswood settings in XCS 

Carrot here is where you decide if you'd like extra layers for the top or not.

Ensure you adjust size appropriately. 

I made these 3" at the thickest part.

Now is the time to decide if you'd like the name on a second layer or all on one layer.

If you decide on one layer then you will choose a font and fit to your shape. Font will be set to engrave. (I use default XCS basswood lowering lines to 100.) Group at this point if you'll be moving the design at all to ensure all parts remain together. 

If you decide on 2 layers you'll choose the font you want to use then create an offset in the size you prefer. Set the offset to cut and font to engrave, group, then size to fit shape the way you'd like.

Now you're ready to process the design. 

After your machine is done running it is time to decide how you would like to paint or stain your tags.

Once paint is dry you are ready to glue together any layers you may have before deciding how you'd like to attach your tag to the basket and doing so.

(I chose pipe cleaners for photos and truly liked the simplicity of it.)