Partnership owned by an S Corp

[Basta]

My client's S Corp now owns a Partnership involving other partners and their attnys and accountants.

I thought for sure that the SE tax on what is now the bulk of the income for the S Corp would somehow pass through to my clients, but now don't see where or how?

My client and his partners are not professionals (attny/lawyers/cpa's) if that matters, but wouldn't the ability to have an s corp own a partnership to avoid SE taxes be questionable?  

Otherwise what partnership would structure any other way if this structure can eliminate SE taxes?.

Thanks.

[qbteachmt]

"My client and his partners are not professionals (attny/lawyers/cpa's) if that matters, but wouldn't the ability to have an s corp own a partnership to avoid SE taxes be questionable?"

Everyone participating in the S Corp gets paid through payroll. Payroll covers Social Security and Medicare tax. SE is Social Security and Medicare tax. For SE, when you take the expense as a deduction (giving parity to an employer share), you will notice the math bases the tax on 92.35% and not the full 100% taxable income. For employees, the taxes are split evenly between employee and employer, and the employer's tax return is where the employer share is a deduction.

It's not avoidance. It's a different method for payment.

[Basta]

I know and understand S Corps.  That's primarily what I use for my clients. 

The Partnerships I have in some cases own interests in other Partnerships.

The is the first time i've had an S Corp owning a Partnership and I just instinctively became worried about  the SE taxes.  

So you're saying it doesn't matter that most of the income comes from partnerships on their K-1, Box 14, Code A?

all the partnership self-employed income shown on the K-1 passes into the S Corp and then is just treated as ordinary income with no SE implications?