Declaring variables outside loop/IF structures in C

I'm new to the C language, rather programming overall. I was wondering why is it that when I declare a variable to be used within an if statement OUTSIDE the structure, that the output I've received is incorrect (for this piece of code anyway).

Here's my code:

#include<stdio.h>
void grossPay();

int main()
{
    grossPay();
}

void grossPay()
{
int rate = 10, hours;
double tax, grosspay, netpay;

printf("Enter work hours this week: ");
scanf("%d", &hours);

grosspay = hours * rate;

if (grosspay <= 300 && grosspay > 0)
{
    tax = 0.10;
    netpay = grosspay - grosspay * tax;
    printf("Pay for %d hours of week with $%d per hour\n", hours, rate);
    printf("Gross pay: $%.2f\n", grosspay);
    printf("Net pay: $%.2f\n", netpay);
}
else if (grosspay > 300 && grosspay <=1000)
{
    tax = 0.15;
    netpay = grosspay - grosspay * tax;
    printf("Pay for %d hours of week with $%d per hour\n", hours, rate);
    printf("Gross pay: $%.2f\n", grosspay);
    printf("Net pay: $%.2f\n", netpay);
}
else if (grosspay > 1000)
{
    tax = 0.25;
    netpay = grosspay - grosspay * tax;
    printf("Pay for %d hours of week with $%d per hour\n", hours, rate);
    printf("Gross pay: $%.2f\n", grosspay);
    printf("Net pay: $%.2f\n", netpay);
}
else 
{
    printf("Invalid input. Please try again.\n\n");
}

}