Water pump

#1
2010 Corolla Le
Water pump replacement oem

Simple question I’m hoping someone can answer. When replacing the water pump the new pump comes with a gasket. Is that gasket supposed to sit in between the lip or does it just free float? I saw a video that made it appear like it free floats but another that makes it look like it should be inserted around the lip. When removing the old pump a gasket didn’t come out..
-Thanks
 
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