QB Issue Resolution:

That could be correct. If you used the name as a customer or a vendor, that makes the name used. Also, if you inactivated the name from any of the lists.

Try changing the name slightly & you should be able to add it.

Resolution for Issue 'I keep getting this message when setting up payroll : user name already exists' available: Yes (Solved).
Source: Intuit Community forum.

I keep getting this message when setting up payroll : user name already exists: this issue or error code is a known issue in Quickbooks Online (QBO) and/or Quickbooks. Support for this issue is available either by self-service or paid support options. Experts are available to resolve your Quickbooks issue to ensure minimal downtime and continue running your business. First try to resolve the issue yourself by looking for a resolution described below. If it is a complex issue or you are unable to solve the issue, you may contact us by clicking here or by using other support options.

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