As previously stated, the flange and floor do not have to be perfectly level. However, the flange should be on top of the finished floor and screwed through all of the flooring. So many times we get folks who have a recessed flange due to a remodel either an old one or the present one. This requires an extra thick wax ring and or extension rings to gain the extra height. I would suggest you remove this old flange, install the floor, then put a new flange in place. Your old flange appears quite serviceable, but I'd still replace it with a stainless steel model. Do not use PVC or ABS. Can you get by without doing all of this? Yes, but considering this is a one time installation, I'd go the extra mile.