Start off by listing a handful of reports that you have prepared, including a high-level overview of what data can be found in the reports. Expand on this by telling the interviewer how you can manipulate data within your payroll system to generate any reports you are looking for, and mention that you can create reports in many formats including Word, Excel, and Adobe formats.
"I am well-versed in preparing income statements, new hire reports, promotion reports, deduction reports, leave/ absentee reports, wage types etc. and if needed I can manipulate the data provided to me in any form and create reports in any format including Word, Excel, etc."
"Reports are a large part of streamlining and ensuring accuracy of the payroll process. I run weekly auditing reports, total time and payments reports and financial reports to provide to my finance partner counterparts. Each payroll run, I also audit the inputs and track the paid time off updates for the organization. The reporting tool is great because you can consistently come up with custom reports to meet the needs of your work."