Might be easiest done in an example-
Example: Dave has a handicap of 0 and I have a handicap of 9. For team calculation purposes and for flighting, I will be reduced to an 8. A 0+8=8 will be our team handicap and will be placed in the field accordingly. As a reminder, once matches start, handicaps will not apply, its simply for determining your place in the field.
Additionally, this is suggested by the USGA. Players differing by more than 8 strokes present a mathematical advantage over more well-balanced teams. This calculation is confirmed statistically to make it more equitable for both the teams with the large handicap differentials and the field in general.