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are you having trouble with gaps when you are pressing it? If so you will want to have your bottom color cover the entire print area and the next layer cover all the area it is need. the heat press vinyl shrinks a small bit which will cause the shirt color to show through when layering.
When I do multi colors the first layer I only press for a few second enough to adhere a bit then I do my second color the same way. Once all yours colors are on then press for the whole time. As previous poster said it shrinks and this prevents it from shrinking as much and be able to put other layers on without the gaps.
Vette does it work better with a white outline around it so the dog outline shows up? Then all you should need to cut is the white and red